Fragbite Group AB (FRAG) AI Stock Analysis

• Market Cap: kr48.62M
• Dividend Yield: N/A
• Average Volume (3M): 29.25K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.88
• Revenue Growth: -10.21%
• EPS Growth: -1.15%
• Country: SE
• Employees: 75
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 10.55
• Shares Outstanding: 8,077,044
• 10 Day Avg. Volume: 39,134
• 30 Day Avg. Volume: 29,251
• PEG Ratio: -0.06
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -1.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 33.44
• Revenue Forecast (FY): kr782.70M

• Rating: 48 Neutral
• Price Target: kr6.50 ▲(14.04% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by weak financial performance—shrinking revenue, ongoing operating losses, and consistently negative operating/free cash flow with questionable 2025 earnings quality. Technicals are also soft with the stock below key longer-term moving averages and negative MACD. Valuation is a partial offset due to a low P/E, but it is not enough to outweigh the fundamental and trend risks.

Positive Factors

Balance sheet strength

Zero reported debt in 2025 and positive equity provide a meaningful financial cushion, lowering solvency risk and preserving optionality. With limited leverage the company has greater flexibility to raise targeted capital or endure operational weakness while it works to restore sustainable profitability.

Modest improving leverage

A historically low-to-moderate leverage profile that improves to zero debt in 2025 reduces fixed financial obligations and interest burden. This structural improvement supports a longer runway for strategic restructuring or investment without large financing costs that would further strain margins.

Exposure to gaming & esports

Operating in digital gaming and esports positions the company in a structurally digital, scalable sector with multiple monetization channels (publishing, services, events). This business model can support recurring revenue and operating leverage if product adoption and engagement are restored.

Negative Factors

Multi-year revenue decline

Sustained and steep revenue contraction weakens scale economics and undermines margin recovery. Lower top line limits ability to spread fixed costs, reduces negotiating power with partners, and makes forecasting and investment planning harder until the company can demonstrate a durable reversal in sales trends.

Negative operating and free cash flow

Persistent negative operating and free cash flow means the business is not self-funding and needs external capital for operations or growth. This structural cash drain constrains reinvestment, increases refinancing or dilution risk, and limits the company's ability to execute medium-term turnaround plans without material funding events.

Weak earnings quality & profitability

Reported 2025 net profit appears disconnected from core operations, while operating losses and negative cash flow persist and gross profit was unusually negative. This raises durable concerns about earnings quality and predictability; true sustainable profitability remains unproven absent operational improvement.

Fragbite Group AB Business Overview & Revenue Model

Company Description

Fragbite Group AB (publ) operates as a digital gaming entertainment company in the Nordic region. It develops, publishes, distributes, and markets mobile games through its game development studios, including Lucky Kat, FunRock Development, and Prey Studios; and arranges and broadcasts e-sports tournaments live. The company was founded in 2002 and is headquartered in Stockholm, Sweden. Fragbite Group AB was a former subsidiary of FunRock Media AB.

How the Company Makes Money

Fragbite Group AB generates revenue through multiple streams, including entry fees from esports tournaments, advertising and sponsorship deals, and subscription services for premium content. The company often partners with game developers and hardware manufacturers to enhance their offerings and attract larger audiences, which in turn boosts their advertising and sponsorship income. Additionally, Fragbite may monetize its platforms through affiliate marketing and merchandise sales, contributing to its overall financial performance.

Fragbite Group AB Financial Statement Overview

Summary

Weak fundamentals: multi-year revenue decline with a sharp drop in 2025, persistent operating losses, and negative operating/free cash flow through 2023–2025. The 2025 net profit appears non-operating in nature given the operating loss and negative cash flow, raising earnings-quality concerns. Balance sheet is a relative positive with zero debt in 2025 and positive equity, but performance deterioration limits the overall score.

Income Statement

Revenue has been shrinking for several years, with a steep decline in 2025 (annual revenue down ~27%). Profitability remains weak: operating losses persist across the period and 2025 shows an unusually large negative gross profit (suggesting heavy direct costs/adjustments). While 2025 reports a small net profit (~5% margin), this looks disconnected from the operating loss profile and may be driven by non-operating items rather than core performance. Overall, the company has not yet demonstrated consistent, durable earnings power.

Balance Sheet

Leverage is modest and improving: total debt is zero in 2025 versus moderate debt levels in prior years, and debt relative to equity has generally been low-to-moderate historically. Equity remains positive, providing a cushion. The key weakness is value erosion from repeated losses—return on equity has been meaningfully negative in recent years—implying the balance sheet strength depends on stabilizing operating performance.

Cash Flow

Cash generation is a major concern. Operating cash flow is negative in 2023–2025, and free cash flow is deeply negative in 2025 (around -41M) after also being negative in most recent years. Although free cash flow “growth” appears positive in 2025, it is improving from a very weak base and remains firmly negative. The mismatch between reported net income in 2025 and negative operating cash flow suggests earnings quality is weak and the business is not self-funding right now.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	143.85M	213.23M	237.20M	254.06M	124.04M
Gross Profit	-92.30M	118.36M	103.94M	72.70M	42.78M
EBITDA	941.00K	7.79M	8.88M	-2.55M	-10.48M
Net Income	7.62M	-128.98M	-53.15M	-103.11M	-50.40M
Balance Sheet
Total Assets	94.88M	193.06M	984.52M	383.00M	304.26M
Cash, Cash Equivalents and Short-Term Investments	38.13M	9.41M	25.05M	40.99M	87.46M
Total Debt	0.00	29.18M	40.40M	56.85M	46.49M
Total Liabilities	28.04M	112.17M	838.45M	221.49M	101.00M
Stockholders Equity	66.84M	80.89M	146.07M	161.51M	203.25M
Cash Flow
Free Cash Flow	-41.04M	-19.36M	-35.27M	7.18M	-3.42M
Operating Cash Flow	-1.31M	-9.01M	-1.42M	43.10M	3.93M
Investing Cash Flow	43.69M	-44.04M	-55.08M	-141.24M	-73.01M
Financing Cash Flow	-12.38M	37.28M	40.27M	47.73M	151.56M

Fragbite Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:FRAG, the sentiment is Negative. The current price of 5.7 is below the 20-day moving average (MA) of 6.51, below the 50-day MA of 6.84, and below the 200-day MA of 9.00, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:FRAG.

Fragbite Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NITRO	59 Neutral	kr34.74M	13.91	―	―	-18.60%	-118.88%
FRAG	48 Neutral	kr48.62M	5.93	-229.41%	―	-10.21%	-1.15%
SCOUT	43 Neutral	kr28.60M	-2.96	―	―	―	―
QIIWI	41 Neutral	kr15.08M	-2.51	-31.43%	―	-34.32%	70.25%
GCOR	41 Neutral	kr139.33M	-3.85	―	―	32.83%	13.34%