Sweden's Fractal Gaming Q2 revenue falls 65% on weak demand, posts net loss

Fractal Gaming AB

19/08/2026 07:10

Overview
Sweden-based PC gaming hardware firm's Q2 revenue fell 65.3% yr/yr amid weak market conditions
Company posted negative adjusted EBITDA and net loss for the quarter
Cost-cutting program to reduce workforce by 20% in 2026 to boost profitability

Outlook
Company expects underlying demand to remain subdued but to gradually improve
Fractal sees additional restructuring costs of SEK 6–9 mln in H2 2026
Company expects fixed operating cost base in 2027 to be about 20% lower than in 2025

Result Drivers
WEAK MARKET & DRAM PRICES - Co said persistent weak market conditions and higher DRAM prices, driven by AI and data center investments, reduced end-consumer demand
INVENTORY ADJUSTMENTS - Partners reduced purchases to adjust inventory, causing reported end-customer sales to exceed sell-in by over 60%
COST CUTTING - Cost-cutting program and structural changes began to improve cash flow and are expected to enhance profitability, per CEO Jonas Holst

Company press release: ID:nMFN94CXZv

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
SEK 74.70 mln
 
Q2 Loss Per Share
 
SEK 0.80
 
Q2 Adjusted EBITDA
 
-SEK 20.30 mln
 
Q2 Adjusted EBIT
 
-SEK 28.10 mln
 
Q2 EBIT
 
-SEK 31.20 mln
 
Q2 EBITDA
 
-SEK 23.40 mln
 
Q2 EBITDA Margin
 
-31.30%
 
Q2 EBIT Margin
 
-41.80%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "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 SEK13.50, about 7.3% below its August 18 closing price of SEK14.56
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 19 - Sweden's EG7 Q2 revenue rises 25% on game launches
Aug 17 - Sweden's Kjell Group Q2 sales rise on improved inventory availability
Aug 19 - Norway's Xplora misses Q2 revenue estimates on soft consumer demand

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(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.)