Revenue is rising again — highlights from the Embracer Group report
Swedish holding company Embracer Group published its report for the past quarter — the first in its current fiscal year. According to the document, the company is doing quite well.
Reanimal
Overall Figures
- In the report, Embracer Group stated that after several quarters of decline, its revenue has begun to grow again. At the end of April-June 2026, the entire company earned 3.94 billion Swedish kronor ($411 million), which is 24% more than last year.
- Additionally, Embracer Group managed to achieve a net profit of 39 million Swedish kronor ($4.07 million). For comparison, the company closed the first quarter last year with a loss of 418 million Swedish kronor ($43.6 million).
Embracer Group is currently preparing for another stage of business separation. Recall that next year, the Fellowship Entertainment division, which will take Warhorse Studios, 4A Games, Crystal Dynamics, Eidos-Montréal, and several other studios with it, will be spun off from the holding. In anticipation of these changes, Embracer Group decided to separately document the results of Fellowship Entertainment and the rest of the company, simply called Embracer, in its report.
Let's take a closer look at these figures.
Fellowship Entertainment Results
- For the quarter, the teams included in the division collectively earned 810 million Swedish kronor ($84.5 million). This is 23% less than last year.
- The majority of the revenue was generated by the game development and publishing segment, totaling 761 million Swedish kronor ($79.4 million), a decrease of 23%.
- An additional 49 million Swedish kronor ($5.1 million) came from the IP licensing segment, with its revenue decreasing by 30%.
- Despite the decline, the division's revenue exceeded Embracer Group’s expectations. This is especially notable considering that at the start of last year, Kingdom Come: Deliverance II debuted, whereas at the moment, Fellowship Entertainment had no releases of a comparable level.
- The best-selling games of the quarter were Metro Exodus, Remnant II, Dead Island 2, and both parts of Kingdom Come: Deliverance.
Embracer Results
- The Embracer segment, which includes THQ Nordic, CrazyLabs, Aspyr, Beamdog, Deca, and several other teams, earned 3.13 billion Swedish kronor ($326.9 million) for the quarter. This is an increase of 48%.
- The most lucrative was the non-gaming entertainment and services segment, with revenue totaling 1.76 billion Swedish kronor ($184.4 million), an 82.8% increase year over year.
- Revenue from the console and PC games segment grew by 68% to 728 million Swedish kronor ($76 million), and the mobile games segment increased by 17% to 610 million Swedish kronor ($63.6 million).
- The boost in gaming revenue was largely due to the successful releases of Gothic 1 Remake and the mobile game Sled Surfers, as well as continued demand for Reanimal. Additionally, Fatekeeper launched above expectations.