Embracer Group AB (EMBRAC.B) AI Stock Analysis

• Market Cap: kr12.01B
• Dividend Yield: N/A
• Average Volume (3M): 749.02K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.84
• Revenue Growth: -46.66%
• EPS Growth: N/A
• Country: SE
• Employees: 7,873
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.46
• Shares Outstanding: 219,777,970
• 10 Day Avg. Volume: 694,113
• 30 Day Avg. Volume: 749,019
• PEG Ratio: -0.01
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 1.06
• P/FCF Ratio: -94.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr124.00
• Price Target Upside: 136.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: kr56.00 ▲(6.71% Upside)

The score is driven primarily by solid underlying financial performance (strong margins and low leverage), partially offset by the revenue decline and weak cash conversion. Technicals remain bearish with the price below major moving averages, while valuation metrics (very low P/E and very high dividend yield) meaningfully support the overall score.

Positive Factors

High Profitability

Very high gross and net margins reflect durable structural advantages: scalable digital distribution, strong pricing power on franchises, and efficient studio operations. These margins support long-term reinvestment in content and provide buffers across multi-year game development cycles.

Low Leverage

Conservative leverage gives the company lasting financial flexibility to fund long development cycles, pursue acquisitions, or weather revenue volatility without stressing solvency. Low debt reduces refinancing risk and supports steady capital allocation for strategic priorities.

Diversified Revenue Streams and Studios

A broad portfolio of studios and monetization channels reduces reliance on single-title success, smoothing revenue over time. Licensing, DLC, and in-game monetization create recurring and higher-margin revenue that supports resilience across content cycles and market shifts.

Negative Factors

Significant Revenue Decline

A material trailing revenue drop signals structural challenges in the content pipeline, release cadence, or market traction. Sustained top-line declines erode scale benefits, threaten long-term margin sustainability, and necessitate new hit titles or acquisitions to restore growth.

Weak Cash Conversion

Low FCF-to-net-income means reported profits convert poorly to cash, limiting the firm's ability to internally fund long development cycles or large investments. Over time this could force reliance on external financing or slow content investment, constraining growth.

Modest FCF Growth & OCF Coverage

Only modest free cash flow growth and suboptimal operating coverage reduce the company's capacity to self-fund big-budget titles and acquisitions. In an industry requiring heavy upfront investment, this can impair long-term content pipeline health and competitive positioning.

Embracer Group AB Business Overview & Revenue Model

Company Description

Embracer Group AB (publ), together with its subsidiaries, develops and publishes PC, console, mobile, VR, and board games for the games market worldwide. The company has a catalogue of approximately 850 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory, Wreckfest, Insurgency, World War Z, and Borderlands, and others. It also publishes films and comics. It distributes games through retailers and digital distributors. The company was formerly known as THQ Nordic AB (publ) and changed its name to Embracer Group AB (publ) in October 2019. Embracer Group AB (publ) was incorporated in 1999 and is headquartered in Karlstad, Sweden.

How the Company Makes Money

Embracer Group generates revenue primarily through the sale of video games, including both physical and digital copies. Key revenue streams include game sales, downloadable content (DLC), in-game purchases, and subscription services. The company also benefits from licensing agreements and merchandise sales related to its game franchises. Additionally, Embracer Group engages in partnerships with other publishers and developers to co-publish and co-develop games, further enhancing its revenue potential. The diverse portfolio of studios allows Embracer to tap into multiple market segments, contributing to a steady flow of income and growth opportunities.

Embracer Group AB Financial Statement Overview

Summary

Embracer Group AB shows strong profitability with a healthy gross profit margin of 72.62% and a net profit margin of 20.39%. However, the company faces challenges with a significant revenue decline of 15.66% and negative free cash flow growth of -416.60%, indicating cash flow issues. The balance sheet is stable with low leverage, but declining stockholders' equity is a concern.

Income Statement

Embracer Group AB's income statement shows mixed performance. The TTM data indicates a significant revenue decline of 15.66%, which is concerning. However, the company maintains a healthy gross profit margin of 72.62% and a net profit margin of 20.39%, suggesting strong profitability. The EBIT and EBITDA margins are also solid, although they have decreased compared to previous periods. Overall, while profitability remains strong, the declining revenue trend is a risk factor.

Balance Sheet

The balance sheet of Embracer Group AB reflects a stable financial position. The debt-to-equity ratio is low at 0.08, indicating conservative leverage. The return on equity (ROE) is 13.31%, which is a positive sign of profitability. The equity ratio is robust, suggesting a strong capital structure. However, the decline in stockholders' equity over the periods is a point of concern. Overall, the balance sheet is solid, with low leverage and decent profitability.

Cash Flow

The cash flow statement highlights some challenges for Embracer Group AB. The TTM free cash flow growth rate is significantly negative at -416.60%, indicating cash flow issues. The operating cash flow to net income ratio is 0.57, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is negative, reflecting cash flow constraints. While operating cash flow remains positive, the negative free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.95B	22.37B	42.21B	37.66B	17.04B	9.02B
Gross Profit	15.69B	18.38B	30.78B	27.68B	14.63B	6.70B
EBITDA	13.71B	12.54B	4.70B	12.24B	4.07B	4.26B
Net Income	8.10B	5.96B	-18.18B	4.45B	-4.29B	287.00M
Balance Sheet
Total Assets	39.71B	42.13B	95.70B	116.07B	93.45B	33.75B
Cash, Cash Equivalents and Short-Term Investments	6.13B	7.10B	3.34B	4.68B	5.81B	14.30B
Total Debt	2.48B	2.35B	21.18B	21.75B	20.31B	1.48B
Total Liabilities	9.34B	10.94B	43.21B	51.35B	48.64B	6.59B
Stockholders Equity	30.31B	31.13B	52.42B	64.67B	44.59B	27.15B
Cash Flow
Free Cash Flow	843.00M	-252.00M	529.00M	-1.61B	220.70M	1.69B
Operating Cash Flow	4.25B	3.49B	7.89B	5.38B	4.28B	3.90B
Investing Cash Flow	8.73B	14.02B	-9.95B	-15.49B	-37.89B	-6.80B
Financing Cash Flow	-9.74B	-12.65B	832.00M	8.50B	25.02B	14.73B

Embracer Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EMBRAC.B, the sentiment is Negative. The current price of 52.48 is below the 20-day moving average (MA) of 58.99, below the 50-day MA of 61.25, and below the 200-day MA of 69.71, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 30.75 is Neutral, neither overbought nor oversold. The STOCH value of 16.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:EMBRAC.B.

Embracer Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G5EN	74 Outperform	kr772.65M	11.19	12.65%	9.28%	-14.68%	-29.97%
PDX	67 Neutral	kr16.08B	25.21	22.69%	3.16%	-18.54%	71.38%
EMBRAC.B	64 Neutral	kr12.01B	1.46	10.27%	―	-46.66%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MTG.B	55 Neutral	kr12.57B	-64.24	-1.61%	―	72.20%	-166.05%
SF	52 Neutral	kr2.84B	-0.38	―	―	-11.82%	-7499.16%
EG7	49 Neutral	kr1.14B	-6.57	―	―	1.74%	-5214.06%

Embracer Group AB Corporate Events

Embracer Group Unveils New Tomb Raider Titles and Expands Gaming Portfolio

Embracer Group AB announced the unveiling of two new Tomb Raider titles at The Game Awards in Los Angeles, a collaboration between Crystal Dynamics and Amazon Game Studios. ‘Tomb Raider: Legacy of Atlantis’ and ‘Tomb Raider: Catalyst’ are set to launch in 2026 and 2027, respectively, with the latter being the most expansive entry in the series yet. The announcement highlights Embracer’s strategic partnership with Amazon and its commitment to evolving the Tomb Raider franchise, potentially strengthening its market position and stakeholder value. Additionally, Milestone’s new racing game ‘Screamer’ was announced for release in March 2026, further showcasing Embracer’s diverse gaming portfolio.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy with a SEK124.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group to List Coffee Stain on Nasdaq First North

Embracer Group AB announced the listing of its subsidiary Coffee Stain Group AB’s class B shares on Nasdaq First North Premier Growth Market in Stockholm. This strategic move, set to commence trading on December 11, 2025, aims to enhance Coffee Stain’s market visibility and operational independence. The listing is expected to impact Embracer’s shareholders by offering them shares in Coffee Stain, thereby potentially increasing shareholder value and expanding market opportunities for Coffee Stain in the gaming industry.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy with a SEK124.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group Divests Arc Games and Cryptic Studios to Focus on Core IPs

Embracer Group AB has announced the divestment of Arc Games and Cryptic Studios to Project Golden Arc, Inc., backed by XD Inc., for USD 30 million. This move allows Embracer to concentrate on its strategic assets, retaining rights to the Remnant franchise and the multiplayer game Fellowship, which will be part of the Coffee Stain Group spin-off, enhancing its focus on profitability and core intellectual properties.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy with a SEK122.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group to List Coffee Stain on Nasdaq

Embracer Group AB has announced the distribution of all shares of its subsidiary, Coffee Stain Group AB, to its shareholders, with trading expected to commence on Nasdaq First North Premier Growth Market on 11 December 2025. This move marks Coffee Stain’s transition into a standalone listed company, which is anticipated to enhance its market presence and operational focus, potentially benefiting stakeholders by capitalizing on its strong foundation in game development and community engagement.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy with a SEK122.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group to Spin Off Coffee Stain Group with Strong Financial Backing

Embracer Group AB has announced its plan to list its subsidiary, Coffee Stain Group AB, on Nasdaq First North Premier Growth Market in Stockholm, aiming for completion by December 2025. Coffee Stain will be left with a strong financial position, including a pro-forma net cash position of SEK 500 million, enabling it to invest in its game portfolio and pursue mergers and acquisitions, while also returning surplus capital to shareholders in line with its dividend policy.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy with a SEK122.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group Faces Sales Decline but Maintains Profitability Outlook

Embracer Group AB reported a challenging second quarter of 2025, with net sales decreasing by 19% compared to the previous year, despite achieving 6% organic growth. The company faced weak performance in new releases, notably in PC/Console Games, while Mobile Games and Entertainment & Services showed solid results. Embracer remains focused on strengthening profitability and unlocking long-term value, with expectations to deliver at least SEK 1 billion in Adjusted EBIT for the financial year. The company also highlighted its strategic flexibility with a strong balance sheet and reduced cash earnout obligations.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK96.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group Completes SEK 500 Million Share Buyback Program

Embracer Group AB has completed its SEK 500 million share buyback program, repurchasing a total of 4,830,742 B shares to optimize its capital structure and increase shareholder value. The program, which adhered to EU regulations, concluded ahead of its scheduled end date, with the board planning to propose the cancellation of repurchased shares to further enhance capital efficiency.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group to Present Q2 Financial Report

Embracer Group AB has announced a presentation of its Q2 interim report for the fiscal year 2025/26, scheduled for November 13. The presentation, led by CEO Phil Rogers and CFO Müge Bouillon, will provide insights into the company’s financial performance and strategic direction, offering stakeholders an opportunity to engage and ask questions. This event underscores Embracer’s commitment to transparency and stakeholder engagement, potentially impacting investor confidence and market positioning.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group Executes Strategic Share Buyback to Enhance Shareholder Value

Embracer Group AB announced the repurchase of 728,742 B shares as part of a SEK 500 million buyback program aimed at optimizing its capital structure and increasing shareholder value. The buyback, conducted in compliance with EU regulations, reflects Embracer’s strategic efforts to manage its share capital effectively, with plans to propose the cancellation of repurchased shares at the 2026 annual general meeting.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group to Distribute Coffee Stain Shares to Shareholders

Embracer Group AB announced during an extra general meeting that it will distribute all its shares in Coffee Stain Group AB to its shareholders, with each Embracer share entitling the holder to a corresponding Coffee Stain share. This strategic move is expected to culminate in Coffee Stain’s shares being traded on Nasdaq First North Premier Growth Market by the end of 2025, potentially impacting Embracer’s market positioning and offering new opportunities for stakeholders.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group Expands Share Capital and Voting Rights

Embracer Group AB has announced an increase in its number of shares and votes due to the issuance of new shares related to earn-out payments, bringing the total to 228,777,965 shares. This adjustment reflects the company’s ongoing financial activities and may impact its shareholder structure and market positioning.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group Executes Share Buyback to Boost Shareholder Value

Embracer Group AB announced the repurchase of 588,663 B shares between October 13 and October 17, 2025, as part of a SEK 500 million share buyback program. The initiative aims to optimize the company’s capital structure and enhance shareholder value, with plans to propose the cancellation of repurchased shares at the 2026 annual general meeting.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK100.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

Embracer Group to Distribute Coffee Stain Shares and Plan Nasdaq Listing

Embracer Group AB has announced the proposed distribution of shares in Coffee Stain Group AB to its shareholders, with plans to list Coffee Stain’s class B shares on Nasdaq First North Premier Growth Market in Stockholm by the end of 2025. This strategic move is expected to enhance Coffee Stain’s market presence and provide shareholders with direct investment opportunities in the successful game development company known for titles like Goat Simulator and Deep Rock Galactic.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK100.00 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.