Sweden's Fractal Gaming Q1 revenue falls 39% amid memory component shortages

Fractal Gaming AB

07/05/2026 07:12

Overview

Sweden PC gaming hardware maker's Q1 revenue fell 39% yr/yr amid global component shortages

Company posted SEK –0.1 Q1 EPS and SEK –5.8 mln EBIT as earnings declined sharply

Board proposes no dividend for 2025 due to challenging market conditions

Outlook

Company expects market slowdown to persist for remainder of 2026

Fractal launching cost reduction program targeting SEK 40 mln savings in 2026

Company expects reduced tariffs to positively impact product margin in H2 2026

Result Drivers

COMPONENT SHORTAGES - Co said a global shortage of memory components drove a drastic slowdown in the gaming hardware market, leading to lower demand and sales

INVENTORY ADJUSTMENTS - Inventory adjustments at distributors amplified short-term fluctuations in net sales, adding to volatility

COST CONTROL MEASURES - Co reduced purchasing and production volumes and began cost control efforts, which primarily strengthened cash flow

Company press release: ID:nMFN5WdGMV

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
SEK 138.40 mln
Q1 EPS
-SEK 0.10
Q1 EBIT
-SEK 5.80 mln
Q1 EBITDA
SEK 1.30 mln
Q1 EBITDA Margin
1.00%
Q1 EBIT Margin
-4.20%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the computer hardware peer group is "buy"

Wall Street's median 12-month price target for Fractal Gaming Group AB is SEK17.00, about 13.5% above its May 6 closing price of SEK14.98

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)