Embracer Tightens Focus on Core IP as Sales Slide but Profitability Improves

Embracer Group AB ( ($SE:EMBRAC.B) ) has shared an update.

Embracer Group reported third-quarter net sales of SEK 5.2 billion, down 26% year-on-year, with sharp declines in mobile games and softer PC/console and entertainment revenues, while adjusted EBIT fell 44% to SEK 528 million and free cash flow turned slightly negative. Despite the headline declines, profitability and cash flow improved versus earlier quarters, supported by strong performance from core IPs such as Kingdom Come: Deliverance II, Dead Island and Tomb Raider.

The company completed the spin-off and listing of Coffee Stain Group, reclassifying it as discontinued operations and trimming its full-year 2025/26 adjusted EBIT forecast to at least SEK 750 million, which represents a modest upgrade on an underlying, like-for-like basis. Management is doubling down on an IP-led strategy, divesting non-strategic and loss-making third-party publishing and work-for-hire assets, and banking on a strengthened pipeline of major and mid-sized releases to drive a profitability and cash-generation inflection in FY 2026/27.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy with a SEK52.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

More about Embracer Group AB

Embracer Group AB is a Sweden-based video game and entertainment conglomerate that develops, publishes and distributes PC and console titles, mobile games, and entertainment and services offerings. The group manages a wide portfolio of gaming IPs and studios, with a strategic focus on core franchises and an IP-first approach to drive profitable growth and shareholder value in the global games market.

Average Trading Volume: 947,730

Technical Sentiment Signal: Sell

Current Market Cap: SEK10.93B

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