Enad Global 7 AB (SE:EG7)
:EG7
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Enad Global 7 AB
(EG7)
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Rating:44Neutral
Price Target:
kr17.00
▲(33.44% Upside)
Action:ReiteratedDate:02/18/26
The score is held down primarily by deteriorating profitability and a weakening balance-sheet trend, reinforced by bearish technicals (price below key moving averages and negative MACD). The latest earnings call adds some support via improving operational momentum in parts of the portfolio and balance-sheet actions, but guidance uncertainty and the impairment keep overall risk elevated.
Positive Factors
Live-operations growth and portfolio momentum
Rapid live-service growth (Palia +146% YoY) and Daybreak's recurring-title EBITDA expansion indicate durable recurring monetization. Platform expansion and stronger live engagement reduce reliance on one-time hits, supporting steadier revenue and longer-lived cash flows across the portfolio.
Negative Factors
Large non-cash impairment
The SEK 2.51bn impairment is a material write-down that erodes equity and reflects asset-value deterioration or overpayment on prior investments. It signals lower recoverable values, constrains future balance-sheet flexibility, and raises questions on prior capital allocation discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Live-operations growth and portfolio momentum
Rapid live-service growth (Palia +146% YoY) and Daybreak's recurring-title EBITDA expansion indicate durable recurring monetization. Platform expansion and stronger live engagement reduce reliance on one-time hits, supporting steadier revenue and longer-lived cash flows across the portfolio.
Read all positive factors
Enad Global 7 AB (EG7) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr1.48B
Dividend YieldN/A
Average Volume (3M)457.84K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth-5.06%
EPS Growth-718.26%
CountrySE
Employees546
SectorTechnology
Sector Strength88
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-21.85
Shares Outstanding88,603,520
10 Day Avg. Volume482,581
30 Day Avg. Volume457,838
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.78
Price to Sales (P/S)0.74
P/FCF Ratio12.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.7
Revenue Forecast (FY)kr1.84B
Enad Global 7 AB Business Overview & Revenue Model
Company Description
Enad Global 7 AB (publ) develops, markets, publishes, and distributes PC, console, and mobile games in Sweden, rest of Europe, North America, South America, Asia, Africa, and Oceania. The company also provides consulting services for development s...
How the Company Makes Money
EG7 makes money primarily by selling and monetizing video games through its owned studios and publishing operations. Key revenue streams include: (1) Premium game sales: one-time purchases of full games and expansions/deliverables sold digitally (...
Enad Global 7 AB Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed picture: clear operational positives (strong growth in Palia, Daybreak momentum, Fireshine's digital transition, viral recovery at Big Blue Bubble, all units cash-flow positive and healthy liquidity) balanced against significant negatives (a large SEK 2.51 billion impairment, revenue declines influenced by FX, Piranha underperformance, delays such as Cold Iron, and retained uncertainty leading to retraction of 2026 guidance). Management has taken active strategic and balance-sheet measures to improve transparency and future profitability, but near-term headwinds and one‑off charges temper the outlook.Positive Updates
Q4 Net Revenue and Profitability
Q4 net revenue SEK 437 million; adjusted EBITDA SEK 80 million, representing an 18.2% margin (management also reported a ~4% FX‑neutral revenue decline for Q4).
Negative Updates
Overall Revenue Decline and FX Volatility
Full year 2025 net revenue declined 1.1% excluding FX, and declined ~5.1% in SEK when FX is included; FX volatility materially distorted reported SEK figures (Q4 impacted by an unfavorable currency effect of SEK ~53 million).
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Net Revenue and Profitability
Q4 net revenue SEK 437 million; adjusted EBITDA SEK 80 million, representing an 18.2% margin (management also reported a ~4% FX‑neutral revenue decline for Q4).
Read all positive updates
Company Guidance
Guidance for 2026 centers on product-driven growth and balance-sheet cleanup: management expects Cold Iron’s delayed title to launch in Q3 2026 (with an additional developer advance of USD 4.5m) and to “contribute significantly” to 2026 results; Palia will ship a second annual expansion in late spring (May target), building on 146% Q4 net-revenue growth and prior H2 vs H2 net-revenue expansion of ~70%, with the aim of growing toward profitability and becoming a material portfolio contributor; Fireshine plans ~10 published titles in 2026 (~50% digital / 50% physical) with Far, Far West showing ~400,000 playtesters and ~400,000 Steam wishlists; Daybreak live titles are expected to normalize and continue momentum into 2026; the company has retracted its 2023 Capital Markets Day 2026 targets and will host an updated Capital Markets Day in Q1 2027; financial actions announced include accelerated contingent consideration payments (SEK 5m settled for 2024–25 and SEK 6m for 2026 and thereafter, improving cash generation by ~USD 1–3m p.a. over 12 years), a SEK 2.51bn impairment that lowers annual amortization by SEK 120m in 2026, and continued disciplined M&A screening.Enad Global 7 AB Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
38
Negative
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.63B | 1.92B | 2.09B | 1.88B | 2.04B |
| Gross Profit | -2.06B | 1.56B | 1.55B | 1.41B | 1.50B |
| EBITDA | 132.50M | 471.10M | 489.10M | 472.10M | 576.30M |
| Net Income | -1.94B | -236.40M | 156.10M | -268.10M | 96.80M |
Balance Sheet | |||||
| Total Assets | 2.53B | 4.91B | 4.87B | 4.95B | 6.01B |
| Cash, Cash Equivalents and Short-Term Investments | 390.30M | 321.50M | 478.30M | 405.20M | 481.20M |
| Total Debt | 436.50M | 69.00M | 80.90M | 145.10M | 458.50M |
| Total Liabilities | 995.00M | 939.80M | 972.30M | 1.05B | 1.41B |
| Stockholders Equity | 1.54B | 3.97B | 3.90B | 3.90B | 4.60B |
Cash Flow | |||||
| Free Cash Flow | 96.70M | -137.90M | 190.70M | 174.50M | 4.20M |
| Operating Cash Flow | 102.80M | 194.10M | 437.80M | 374.60M | 162.70M |
| Investing Cash Flow | -309.60M | -306.50M | -231.60M | -58.00M | -625.80M |
| Financing Cash Flow | 312.10M | -66.30M | -126.00M | -331.80M | -164.20M |
Enad Global 7 AB Technical Analysis
Positive
12.74
Price Trends
15.03
Positive
14.08
Positive
14.04
Positive
Market Momentum
0.49
Positive
56.41
Neutral
32.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EG7, the sentiment is Positive. The current price of 12.74 is below the 20-day moving average (MA) of 16.02, below the 50-day MA of 15.03, and below the 200-day MA of 14.04, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 32.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:EG7.
Enad Global 7 AB Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | kr14.24B | 37.90 | 22.69% | 3.16% | -0.41% | -78.54% | |
66 Neutral | kr14.44B | 2.23 | 10.27% | ― | -45.71% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | kr451.80M | 23.65 | 12.65% | 9.28% | -17.01% | -74.62% | |
60 Neutral | kr209.31M | 81.39 | -3.04% | 13.12% | 0.57% | -263.59% | |
55 Neutral | kr2.68B | 3.97 | ― | ― | -15.98% | 69.06% | |
44 Neutral | kr1.48B | -0.62 | ― | ― | -5.06% | -718.26% |
* Technology Sector Average
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Enad Global 7 AB Corporate Events
EG7 Targets SEK 32 Million in Annual Savings With Organizational Realignment
Apr 13, 2026
Enad Global 7 is tightening its cost base across its Petrol and Piranha Games units and at the board and executive level, as part of an ongoing strategic review aimed at restoring sustainable profitability. The group, which develops and markets ga...
EG7’s Fireshine Sets April 28 Steam Launch for Highly Anticipated Far Far West
Apr 10, 2026
EG7’s publishing arm Fireshine Games is set to release Far Far West, a co-op first-person shooter developed by Evil Raptor, on PC via Steam on April 28, 2026, expanding the group’s indie-focused portfolio. Set in a stylized western wor...
EG7 Moves to Acquire Cold Iron to Bring Project Avo In-House and Simplify Structure
Apr 8, 2026
Enad Global 7 has signed a letter of intent to acquire Cold Iron Studios, the developer of Aliens: Fireteam Elite, bringing development of their upcoming multiplayer action shooter Project Avo fully in-house and simplifying EG7’s ownership s...
Enad Global 7 Calls 2026 Annual General Meeting in Stockholm
Apr 8, 2026
Enad Global 7 AB has convened its annual general meeting for 12 May 2026 in central Stockholm, offering shareholders the option to attend in person or vote in advance by postal voting. The notice details record dates, registration procedures, prox...
EG7’s Daybreak Games to Reimagine EverQuest with Solo-Friendly EverQuest Legends
Mar 25, 2026
Enad Global 7’s subsidiary Daybreak Games, in collaboration with indie studio Game Jawn, is launching EverQuest Legends, a modern reimagining of the original EverQuest aimed at both returning fans and new players. The title preserves the cla...
EG7’s Big Blue Bubble Unveils T-Pain Collaboration and Clubbox Concert Feature in My Singing Monsters
Feb 25, 2026
Big Blue Bubble, part of Enad Global 7, has launched a new collaboration with artist and songwriter T-Pain within its hit game My Singing Monsters, introducing the Clubbox virtual concert feature to deepen musical engagement. Clubbox offers player...
EG7 Publishes Five-Year Business Unit Data as It Bets on Future Growth Assets
Feb 17, 2026
Enad Global 7 has released five years of historical financial data for its business units, covering 2021 to 2025, to help current and prospective investors better assess the value of the group and perform sum-of-the-parts valuations. The one-off d...
EG7 Posts Weak Q4 on Impairments but Live Games and Pipeline Show Strength
Feb 17, 2026
Enad Global 7 reported fourth-quarter 2025 net revenue of SEK 436.9 million, down 14.8 percent year-on-year with a 4.4 percent FX-adjusted organic decline, as unfavorable currency movements weighed on sales and margins. EBITDA fell sharply and a l...
EG7 Accelerates Settlement of Daybreak Tax Contingent Consideration to Unlock Cash Flow and Tax Benefits
Feb 16, 2026
Enad Global 7 AB has agreed to accelerate and fully settle the remaining tax-related contingent consideration tied to its acquisition of Daybreak by paying USD 11 million now, covering both outstanding obligations for 2024–2025 and future pe...
EG7 scraps 2026 targets as it launches broad strategic review
Feb 16, 2026
Enad Global 7 has launched a broad strategic review of its business areas, including significant recent investments in Fireshine, Singularity 6 and an upcoming Cold Iron project, to reassess long-term value creation and capital allocation. The com...
EG7 books SEK 2.1bn non-cash impairment as it shifts future game investments to Canada
Feb 16, 2026
Enad Global 7 will book a non-cash impairment of SEK 2,051.7 million on intangible assets for 2025, driven mainly by a strategic decision to shift certain potential future game investments to Canada, where it aims to benefit from lower costs and s...
EG7 Schedules Live Webcast for 2025 Year-End Report Presentation
Feb 3, 2026
Enad Global 7 AB, the Stockholm-listed gaming group behind development studios such as Daybreak Games, Piranha Games and Big Blue Bubble and marketing agency Petrol, which has worked on over 2,000 game launches, is a diversified player in the glob...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.