Return to Profitability
Net profit of SEK 21 million in Q1 2026 versus a loss of SEK 18.5 million in Q1 last year; diluted EPS of SEK 0.24.
Strong Operating Cash Flow
Operating cash flow of ~SEK 89–90 million in Q1, approximately 5x the multiple versus prior year (up from SEK 80 million), supporting liquidity despite recent investments.
Predictable Revenue Base Remains Resilient
91% of group net revenues (SEK 314 million in Q1) derived from live-service and back-catalog titles; this portfolio declined only ~1.5% in the quarter and provides stable recurring cash generation (SEK 1.3 billion of LTM revenue from the predictable base).
Daybreak Strong Organic Growth
Daybreak generated SEK 190 million (55% of group net revenue) with ~17% organic growth in local currencies year-over-year; Palia delivered exceptional growth (management cited ~160% YoY local-currency growth) and hit 10 million lifetime players.
Successful New Release Momentum (Fireshine title)
Far Far West (Fireshine) launched into early access April 28 and shipped ~700,000 units in the first week with a 96% positive Steam rating, indicating strong early demand and potential for multi-platform expansion.
Business Unit Profitability and Recovery
Piranha reported SEK 21 million revenue (≈12–12.5% growth) with adjusted EBITDA SEK 8 million (39% margin, up from 17% prior year). Big Blue Bubble returned to growth (≈3.6–4% YoY) and posted an adjusted EBITDA contribution.
Cost Discipline and Structural Cleanup
Operational cost reductions include Petrol (~SEK 13 million annualized), Piranha (~SEK 15 million), reduced remuneration (~SEK 4 million), totaling ~SEK 32 million annualized savings; accelerated settlement of Daybreak earn-out (USD ~11 million paid) expected to improve cash flow by USD 1–3 million annually and produced a one-time gain recognized on the P&L.
Largest Product Slate in Company History
Management highlighted a robust 2026 pipeline: recent Far Far West release, Palia Royal Highlands expansion (May), MechWarrior DLC, Denshattack (mid-June), Aliens: Fireteam Elite 2 (trailer/reveal and planned late-Q3 release), EverQuest Legends (targeted July), My Singing Monsters events and six additional unannounced Fireshine titles.
Solid Financial Position Despite Investments
Investments of SEK 174 million in Q1 (including accelerated earn-out and investments in Palia/Cold Iron), cash balance SEK 293 million, unutilized rolling credit facility SEK 100 million and bond framework SEK 1 billion; net debt reported at SEK 55 million after earn-out payment.