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Embracer Group AB (SE:EMBRAC.B)
:EMBRAC.B
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Embracer Group AB (EMBRAC.B) AI Stock Analysis

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SE:EMBRAC.B

Embracer Group AB

(EMBRAC.B)

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Neutral 59 (OpenAI - 4o)
Rating:59Neutral
Price Target:
kr96.00
▲(6.67% Upside)
Embracer Group AB's overall stock score is influenced primarily by its strong profitability and undervaluation, which are offset by significant revenue decline and cash flow issues. Technical analysis indicates bearish momentum, further impacting the score negatively. The absence of earnings call and corporate events data means these factors do not influence the score.

Embracer Group AB (EMBRAC.B) vs. iShares MSCI Sweden ETF (EWD)

Embracer Group AB Business Overview & Revenue Model

Company DescriptionEmbracer Group AB (EMBRAC.B) is a Swedish video game and entertainment holding company that operates through a diverse portfolio of subsidiaries across various sectors, including game development, publishing, and distribution. The company encompasses a wide range of studios and franchises, focusing on both AAA and indie games, and engages in the production of interactive entertainment content for various platforms, including consoles, PC, and mobile devices. Embracer Group is known for acquiring established game developers and studios, enabling it to expand its intellectual property library and enhance its market presence.
How the Company Makes MoneyEmbracer Group generates revenue primarily through the sale of video games and gaming content, which includes both physical and digital formats. Key revenue streams come from game sales, in-game purchases, downloadable content (DLC), and subscriptions. The company also earns revenue from licensing its intellectual properties for merchandise, adaptations, and collaborations. Additionally, Embracer Group benefits from strategic partnerships with other gaming companies and platforms, which can enhance distribution and marketing efforts. The acquisition of various studios further diversifies its revenue sources, allowing for multiple successful franchises to contribute to its overall earnings.

Embracer Group AB Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements such as Asmodee's solid performance and the strategic divestment of Easybrain. However, these were countered by notable challenges including a decline in net sales, negative free cash flow, and underperformance in several game releases. While there are promising prospects with upcoming game releases and a strengthened financial position post-divestment, the current challenges balance out the positive aspects.
Q2-2025 Updates
Positive Updates
Asmodee's Solid Earnings Growth
Asmodee achieved SEK 700 million in profitability for the quarter, demonstrating strong earnings growth year-over-year ahead of their listing and Capital Market Day.
Successful Game Launch: Satisfactory
The game Satisfactory exceeded expectations with more than 200,000 concurrent players on PC during the full game launch.
Kingdom Come: Deliverance II On Track
No delays are expected for Kingdom Come: Deliverance II, set to release in February, which has sold over 8 million copies of the first game.
Mobile Games Profitability
The Mobile Games segment had a strong quarter with SEK 1.3 billion in revenues and a 28% adjusted EBIT margin.
Easybrain Divestment
The divestment of Easybrain is expected to significantly transform the financial position of Embracer, with a purchase price of USD 1.2 billion all in cash, strengthening the balance sheet.
Negative Updates
Decline in Net Sales
Net sales declined by SEK 2.3 billion year-over-year, primarily due to the absence of major releases like Remnant II and Payday 3 and the divestments of Saber and Gearbox.
Negative Free Cash Flow
Free cash flow was negative at minus SEK 500 million due to increased working capital from inventory buildup.
PC/Console Segment Challenges
The PC/Console segment experienced a negative organic growth of 33% and a softer performance due to weaker ROI on release products and delays in game releases.
Underperforming Game Releases
Several mid-sized releases underperformed with a return on investment below 1, impacting overall profitability.
Challenges in Entertainment & Services
The Entertainment & Services segment had a slower quarter with negative 9% organic growth year-over-year and a 2% adjusted EBIT margin.
Company Guidance
In the recent call, Embracer Group's CEO Lars Wingefors provided guidance for the second quarter of the fiscal year 2025, highlighting several key financial metrics and strategic updates. The company reported net sales of SEK 8.5 billion, a decrease from the previous year due to the absence of significant releases like Remnant and Payday. Despite this, Asmodee, a key segment, showed solid earnings growth with SEK 700 million in profitability. However, the PC/Console segment faced challenges, with a 33% decline in organic growth and an adjusted EBIT margin of 8% due to delays and weaker returns on investment. The mobile games segment performed well, generating SEK 1.3 billion in revenue with a 28% adjusted EBIT margin. The company also announced the transformative divestment of Easybrain for USD 1.2 billion, expected to significantly strengthen Embracer's financial position, reducing net debt to SEK 500 million on a pro forma basis. Looking ahead, key releases like Kingdom Come: Deliverance II and the remastered Legacy of Kain series are expected to support future growth.

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
65
Positive
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
70
Positive
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
55
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.66B22.37B42.21B37.66B17.04B9.02B
Gross Profit18.31B18.38B30.78B27.68B14.63B6.70B
EBITDA13.77B12.54B4.76B11.69B4.07B4.07B
Net Income7.73B5.96B-18.18B4.45B-4.29B287.00M
Balance Sheet
Total Assets41.02B42.13B95.70B116.07B93.45B33.75B
Cash, Cash Equivalents and Short-Term Investments6.88B7.10B3.34B4.68B5.81B14.30B
Total Debt2.60B2.35B21.18B21.75B20.31B1.48B
Total Liabilities10.38B10.94B43.21B51.35B48.64B6.59B
Stockholders Equity30.56B31.13B52.42B64.67B44.59B27.15B
Cash Flow
Free Cash Flow744.00M-252.00M529.00M-1.61B220.70M1.69B
Operating Cash Flow4.28B3.49B7.89B5.38B4.28B3.90B
Investing Cash Flow10.29B14.02B-9.95B-15.49B-37.89B-6.80B
Financing Cash Flow-9.73B-12.65B832.00M8.50B25.02B14.73B

Embracer Group AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price90.00
Price Trends
50DMA
99.07
Negative
100DMA
99.76
Negative
200DMA
107.95
Negative
Market Momentum
MACD
-2.40
Positive
RSI
25.24
Positive
STOCH
5.49
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 90 is below the 20-day moving average (MA) of 101.96, below the 50-day MA of 99.07, and below the 200-day MA of 107.95, indicating a bearish trend. The MACD of -2.40 indicates Positive momentum. The RSI at 25.24 is Positive, neither overbought nor oversold. The STOCH value of 5.49 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$752.18M9.3412.65%8.88%-14.68%-29.97%
71
Outperform
$18.96B29.7322.69%2.87%-18.54%71.38%
64
Neutral
kr1.44B-6.455.10%-623.00%
61
Neutral
kr14.25B-220.60-0.52%44.55%-8.92%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
59
Neutral
$22.15B2.829.51%-37.87%
51
Neutral
kr3.37B-0.45-11.82%-7499.16%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:EMBRAC.B
Embracer Group AB
90.00
-7.60
-7.78%
SE:MTG.B
Modern Times Group AB
122.80
45.20
58.25%
SE:PDX
Paradox Interactive AB
175.50
-13.19
-6.99%
SE:G5EN
G5 Entertainment AB
94.00
-3.40
-3.49%
SE:SF
Stillfront Group AB
6.28
-0.04
-0.55%
SE:EG7
Enad Global 7 AB
15.72
1.20
8.26%

Embracer Group AB Corporate Events

Embracer Group Completes SEK 500 Million Share Buyback Program
Nov 7, 2025

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
Nov 6, 2025

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
Nov 4, 2025

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
Nov 3, 2025

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
Oct 31, 2025

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
Oct 21, 2025

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
Oct 20, 2025

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.

Embracer Group Prepares Coffee Stain for Nasdaq Listing with Capital Markets Event
Oct 8, 2025

Embracer Group AB is organizing a Capital Markets Event for its subsidiary, Coffee Stain Group, ahead of its listing on Nasdaq First North Premier Growth Market. The event will highlight Coffee Stain’s portfolio, operating model, and future growth opportunities, with key presentations from the CEO and CFO. This move is expected to enhance Coffee Stain’s visibility and market positioning, potentially impacting investor interest and stakeholder engagement.

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 AGM Resolutions and Strategic Authorizations
Sep 18, 2025

Embracer Group AB held its Annual General Meeting, where key resolutions included the adoption of financial statements, no dividend distribution, and re-election of board members. The meeting also approved remuneration adjustments and authorized the board to issue shares to enhance financial flexibility and support potential acquisitions.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy with a SEK116.00 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 Announces SEK 500 Million Share Buyback Program
Sep 18, 2025

Embracer Group AB has announced its intention to initiate a share buyback program worth up to SEK 500 million, contingent upon authorization from the annual general meeting. The buyback aims to optimize the company’s capital structure and enhance shareholder value by reducing share capital, with the program set to run from September 19 to December 2, 2025. The buybacks will be conducted on Nasdaq Stockholm, adhering to specific regulatory guidelines, and will be managed independently by SB1 Markets.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy with a SEK116.00 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 Host Annual General Meeting via Live Webcast
Sep 11, 2025

Embracer Group AB has announced that its Annual General Meeting (AGM) will be available via live webcast on September 18, 2025. The meeting will feature an operations overview by CEO Phil Rogers and Group CFO Müge Bouillon, followed by presentations and a Q&A session led by equity analyst Erik Larsson. This event is open to all stakeholders and will be conducted in English, providing an opportunity for shareholders and interested parties to engage directly with the company’s leadership.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Buy 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 Prepares Coffee Stain Group for Independent Listing
Sep 1, 2025

Embracer Group AB has announced the formation of a new Board of Directors for Coffee Stain Group AB as part of its strategy to separate and list CSG as a standalone entity on Nasdaq First North Premier Growth Market in Stockholm by the end of 2025. This move includes the departure of Anton Westbergh from Embracer’s executive management, who will continue as CEO of CSG. The restructuring aims to enhance CSG’s governance and operational independence, 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 SEK88.00 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 AB Announces Annual General Meeting Details
Aug 18, 2025

Embracer Group AB has announced its annual general meeting scheduled for September 18, 2025, in Karlstad, Sweden. Shareholders can participate in person, by proxy, or through advance voting, with the option to attend via video conference, reflecting the company’s commitment to inclusivity and accessibility in shareholder engagement.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK91.87 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 Reports Q1 2025 Earnings Amid Transition
Aug 15, 2025

Embracer Group AB, a prominent player in the gaming and entertainment industry, is known for its diverse portfolio of intellectual properties and game development studios. The company operates across various segments, including PC/Console Games, Mobile Games, and Entertainment & Services.

Embracer Group Faces Challenging Q1 2025 Amidst Strategic Transition
Aug 14, 2025

Embracer Group AB reported a challenging first quarter for 2025, with net sales declining by 31% compared to the previous year, primarily due to a quiet period for PC/Console game releases. Despite this, the company is focused on strategic execution and operational improvements, with plans to evolve into Fellowship Entertainment. The transition is supported by a strong IP portfolio and the upcoming listing of Coffee Stain Group. Embracer’s Entertainment & Services segment showed growth, but the overall financial performance was impacted by decreased sales in other segments. The company remains optimistic about its future, leveraging its creative talent and IPs to drive long-term value.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK91.87 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 Q1 Financial Report for 2025/26
Aug 7, 2025

Embracer Group AB has announced an upcoming presentation of its Q1 financial report for the fiscal year 2025/26, scheduled for August 14, 2025. The presentation, led by CEO Phil Rogers and CFO Müge Bouillon, will be available via audio webcast and conference call, allowing stakeholders to engage with the company’s financial performance and strategic direction.

The most recent analyst rating on ($SE:EMBRAC.B) stock is a Hold with a SEK91.87 price target. To see the full list of analyst forecasts on Embracer Group AB stock, see the SE:EMBRAC.B Stock Forecast page.

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.Date of analysis: Nov 07, 2025