Tomb Raider Chronicles - EMBRACER GROUP PUBLISHES Q2 2025/26 INTERIM REPORT

Embracer Group has published its interim report for the second quarter of the 2025/26 financial year, covering the period from July to September 2025. The company operates as a global network of creative and entrepreneurial businesses within the PC, console, and mobile gaming sectors. Its portfolio comprises more than 450 owned or controlled franchises, including Tomb Raider, and 69 internal game development studios, such as Crystal Dynamics and Eidos-Montreal.

"Our Q2 results were in line with our moderate expectations, and our full-year outlook remains intact. Our focus on three key priorities remains: investing in our core IPs, operational discipline, and targeted cost initiatives. This quarter shows progress, but also where focus is still needed. We're committed to building a more cohesive organization, strengthening profitability and unlocking long-term value. Coffee Stain Group's upcoming Capital Markets Event will be an important milestone as the company prepares for its spin-off, targeted for December." says Phil Rogers, Group CEO of Embracer Group.

"Total net sales in the quarter amounted to SEK 3,850 million, corresponding to a decrease of -19%. The negative net sales growth in the quarter is primarily related to the divestment of Easybrain and lower foreign exchange rates. Organic growth and pro forma growth amounted to 6% in the quarter. Entertainment & Services segment had the highest contribution with an organic and pro forma growth of 25%, which was mainly driven by increased sales for PLAION Partners. The growth contribution from Entertainment & Services was offset by a -4% organic and proforma growth in PC/Console Games, mainly driven by decreased catalog sales (including platform deals). In the Mobile Games segment the organic and proforma growth amounted to 1% mostly driven by CrazyLabs performance in the quarter," reports Embracer Group

In the PC and Console Games segment, Embracer Group said net sales in the quarter "amounted to SEK 1,853 million, a decrease of -13% compared to the same period last year, and -4% organically and pro forma. The negative organic growth was primarily impacted by lower back catalog revenue."

Net sales in the quarter for Mobile Games "amounted to SEK 535 million, a decrease of -61% compared to the same period last year, primarily due to the divestment of Easybrain. Organic growth and pro forma growth amounted to 1% year-over-year and also saw a positive trend sequentially. The development of total downloads, DAU and MAU, compared to the same period last year is mainly due to the divestment of Easybrain."

Net sales in the The Entertainment and Services segment "amounted to SEK 1,462 million, an increase of 17% compared to the same period last year, or 25% organically and pro forma. The positive organic growth was primarily driven by PLAION Partners. The performance was also positively impacted by the recent strengthening of PLAION Partners footprint through several new agreements announced earlier this year"

Concluding, Phil Rogers says: "To conclude, this quarter demonstrates our ability to deliver on expectations, remain steadfast in our strategic priorities, and further strengthen our platform for profit and cash flow generation. As I stated in August this is a pivotal moment, where we channel our energy and sharpen our focus. Together, we are building a stronger and more focused group. Thank you for your trust."