Tomb Raider Chronicles - EMBRACER GROUP PUBLISHES Q4 2025/26 INTERIM REPORT, ADJUSTED EBIT SEK 360M

Embracer Group has published its interim report for the fourth quarter of the 2025/26 financial year, covering the period from January to March 2026. 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 400 owned or controlled franchises, including Tomb Raider, and 53 internal game development studios, such as Crystal Dynamics and Eidos-Montreal.

"In the fourth quarter, we delivered net sales of SEK 3.9 billion, with adjusted EBIT of SEK 360 million, continuing the strong trend for our core IPs and allowing us to exceed our full-year Adjusted EBIT forecast. The quarter also saw a stronger-than-expected free cash flow of SEK 860 million, with net cash in total increasing to SEK 3.8 billion," says Phil Rogers, Group CEO of Embracer Group.

"Over the past year, we have made important progress on portfolio actions and cost discipline, laying the groundwork for what comes next. Today, we announce the spin-off of Fellowship Entertainment, planned for calendar year 2027. We are now building two focused businesses, guided by the same priorities: consistent delivery, disciplined capital allocation, and stronger conversion of earnings into cash flow," reports Embracer Group

In the PC and Console Games segment, Embracer Group said net sales in the quarter "amounted to SEK 1,554 million, a decrease of -46% compared to the same period last year, and -37% both organically and pro forma. The negative organic growth was primarily impacted by lower net sales from new releases and other net sales. In the corresponding quarter in the previous financial year, Kingdom Come: Deliverance II drove a significant net sales contribution from new releases."

Net sales in the quarter for Mobile Games "amounted to SEK 682 million, with both organic growth and pro forma growth of 2% YoY. The organic growth improved significantly versus the preceding quarter, driven by the successful continued scaling of recently released game Sled Surfers. Total net sales decreased by -28% YoY, primarily due to the divestment of Easybrain, which closed in January, 2025. The development of total downloads, DAU and MAU compared to the same period last year is heavily influenced by the divestment of Easybrain."

Net sales in the Entertainment and Services segment "amounted to SEK 1,695 million, an increase of 23% compared to the same period last year, or 36% organically and pro forma. The strong organic growth was primarily driven by PLAION Partners, driven in particular by two strong new releases from partners in the quarter."

Concluding, Phil Rogers says: "We now have the clear direction we've been building towards. An approach to deliver long-term value for our fans, our businesses and IPs, our people, and our shareholders. Our focus now is consistent delivery. I can't wait to continue the exciting path that we are on. Thank you all for your support."