Sales for Embracer fell by 26% to $1.3 billion over the first nine months of the fiscal year
Embracer Group has announced its financial results for the nine months concluding on December 31, 2025, noting a downturn in overall net revenues in both its PC/console and mobile gaming sectors.
Although the third quarter also experienced a decline, Embracer's CEO, Phil Rogers, labeled the period a "marked improvement," highlighting the successful performance of its primary intellectual properties.
Key details include:
Financial Performance
For the quarter ending December 31, 2025:
Net sales: SEK 5.1 billion ($569.2 million), representing a 26% reduction from the previous year, with specifics as follows:
- PC/console games: SEK 1.9 billion ($212 million), reflecting an 11% decline
- Mobile games: SEK 566 million ($63.1 million), showing a 66% decrease
Net profit: SEK 477 million ($53.1 million), contrasting with a net profit of SEK 806 million ($89.9 million) from the previous year.
For the nine months ending December 31, 2025:
Net sales: SEK 11.9 billion ($1.3 billion), down 26% compared to the previous year, broken down into:
- PC/console games: SEK 5 billion ($557 million), a reduction of 22%
- Mobile games: SEK 1.6 billion ($178 million), a 63% fall
Net loss: SEK 20 million ($2.2 million), an improvement from the net loss of SEK 1.5 billion ($167.4 million) in the corresponding period last year.
Key Insights
The third-quarter sales slump was linked to unfavorable exchange rates, negative organic growth, and the sale of Easybrain in the mobile division.
Nevertheless, Phil Rogers characterized the profitability of this period as a "notable advancement" compared to the first and second quarters.
The strong performance of Embracer's core IPs, such as Kingdom Come: Deliverance, Dead Island, and Tomb Raider, surpassed engagement and revenue forecasts.
The release of Kingdom Come: Deliverance 2's third expansion significantly boosted sales, with over five million copies sold within its first year.
New PC and console releases achieved net sales of SEK 228 million ($25.4 million), up 25% from the previous year, with key contributions from SpongeBob SquarePants: Titans of the Tide and Let's Sing 2026.
Revenue from older titles, along with platform deals, totaled SEK 1.3 billion ($145.4 million), marking a 10% decrease year-on-year. Major revenue generators included Kingdom Come: Deliverance 2, Killing Floor 3, MX vs ATV: Legends, and Shadow of the Tomb Raider.
In the mobile segment, a 66% drop in net sales was attributed to reduced user acquisition costs and the divestiture of Easybrain.
DECA Games demonstrated stable results in the third quarter, whereas CrazyLabs faced negative growth and diminished UCA, despite a successful December launch of Sled Surfers.
Leading mobile games for the quarter consisted of Glow: Fashion Idol, Party in My Dorm, Flop House, Coffee Mania, and Sled Surfers.
Looking forward, CEO Phil Rogers emphasized the importance of delivering a well-planned lineup of significant game launches over the next three years.
Rogers added, "In the upcoming fiscal year, we anticipate unveiling a long-awaited, internally developed and published flagship title, alongside a series of substantial mid-sized releases. Maintaining focus will be essential to turn this enhanced pipeline into a clear profitability and cash flow turning point in FY 2026/27."