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): 46.5
• Beta (1Y): 0.89
• 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: 43 Neutral
• Price Target: kr6.00 ▲(5.26% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is primarily held back by weak financial performance—shrinking revenue, ongoing operating losses, and negative operating/free cash flow despite an improved balance sheet with no debt. Technicals add further pressure with the price below key moving averages and negative MACD. Valuation is also a headwind due to a high P/E and no dividend yield provided.

Positive Factors

Zero debt / improving leverage

The company reported total debt of zero in 2025 and improving leverage, which materially reduces fixed financing costs and interest burden. Over months this enhances financial flexibility to fund product development or weather cyclical troughs without immediate refinancing pressure, improving solvency resilience while operating performance stabilizes.

Positive equity provides a cushion

A positive equity position gives the firm a tangible buffer against further operating losses and supports continued operations or strategic investments. Over a multi-month horizon it increases the firm’s ability to raise capital on more favorable terms and sustain operations while management executes turnaround or product initiatives.

Digital gaming & esports model with diversified services

Operating across game development/publishing and esports services creates multiple monetization channels and scalable digital distribution. Structurally, gaming and esports remain secular growth markets; this business mix can support revenue recovery and margin expansion if content and engagement metrics improve, and a 75-person team suggests a lean cost base to scale digital offerings.

Negative Factors

Sustained multi-year revenue decline

Multi-year top-line contraction, including a steep drop in 2025, undermines scale economics and reduces ability to invest in content, marketing, and platform improvements. Over a 2–6 month horizon this trend constrains margin recovery, weakens competitive positioning in fast-moving gaming markets, and raises execution risk for any turnaround plan.

Persistent negative operating and free cash flow

Consistently negative operating and free cash flow indicate the business is not self-funding; deep FCF deficits in 2025 reduce runway and force reliance on external financing or equity issuance. This structural cash shortfall limits reinvestment in games and esports initiatives and elevates solvency and dilution risk absent rapid operational improvement.

Earnings quality concerns and past losses eroding returns

A reported net profit that conflicts with ongoing operating losses suggests earnings are driven by non-recurring or accounting items, reducing reliability of reported performance. Combined with years of negative ROE, this erodes shareholder value and complicates planning: durable improvement requires sustained operating profitability, not one-off accounting gains.

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

Financials are pressured by multi-year revenue decline (including a steep 2025 drop), persistent operating losses, and consistently negative operating/free cash flow. While leverage improved to zero debt and equity remains positive, weak cash generation and the disconnect between 2025 net profit and negative operating cash flow reduce confidence in earnings quality.

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	kr32.90M	21.32	―	―	-18.60%	-118.88%
FRAG	43 Neutral	kr48.62M	46.45	-229.41%	―	-10.21%	-1.15%
SCOUT	43 Neutral	kr25.90M	-2.59	―	―	―	―
QIIWI	41 Neutral	kr15.08M	-1.90	-31.43%	―	-34.32%	70.25%
GCOR	41 Neutral	kr130.90M	-3.08	―	―	32.83%	13.34%