Swedish gaming firm Fragbite's Q2 hit by project delays, user acquisition costs

Fragbite AB (publ)

26/08/2026 08:16

Overview
Sweden gaming and esports group's Q2 revenue fell sharply yr/yr after 2025 divestments; was on par on a pro-forma basis
Q2 adjusted EBITDA was negative, impacted by higher user acquisition costs and project delays
Company generated positive cash flow from Bitcoin Treasury options trading in Q2

Outlook
Fragbite Group aims for remaining business to be profitable and support parent by end-2026
Company expects revenue from KovaPlay launch and profit-sharing to contribute from Q4 onwards
Fragbite Group continues to focus on diversifying client portfolio and reducing project vulnerability

Result Drivers
USER ACQUISITION COSTS - Higher user acquisition costs for MMA Manager 2 re-release negatively impacted EBITDA in Q2
PROJECT DELAYS - Delays in KovaPlay projects and negotiations limited revenue realization and increased vulnerability
NEW TOURNAMENT LAUNCH - Mästarcupen tournament launch increased revenue but business area still below budget, impacting EBITDA

Company press release: ID:nMFN8Sp3np

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
SEK 5.20 mln
 
Q2 Adjusted EBITDA
 
-SEK 1.60 mln
 

Analyst Coverage
The stock recently traded at 153 times the next 12-month earnings vs. a P/E of 181 three months ago

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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.)