EMBRACER GROUP PUBLISHES Q1 2026/27 INTERIM REPORT, APRIL TO JUNE
[ 13 August 2026 ]
Embracer Group has published its interim report for the first quarter of the 2026/27 financial year, covering the period from April to June 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 first quarter, we delivered organic growth of 33% year-over-year, with positive Cash EBIT and free cash flow ahead of our expectations. The performance was supported by solid momentum across our core IPs within both our new operating segments, Fellowship Entertainment and Embracer. We remain on track to double Cash EBIT this financial year as we continue to unleash the potential that we see in the years ahead," says Phil Rogers, Group CEO of Embracer Group.
"Compared to our internal expectations, Q1 was a strong start to the financial year. Net sales amounted to SEK 3.9 billion, up by 33% organically, and Cash EBIT improved to SEK 47 million from SEK -99 million last year. Free cash flow was also slightly positive despite a quieter seasonal and release period," reports Embracer Group
"The Embracer operating segment delivered strong earnings improvement, led by the PC/Console business area, which saw a successful release of Gothic 1 Remake and continued momentum for REANIMAL. The first quarter was also supported by continued solid momentum across the Mobile and Entertainment & Services business areas. Mobile saw continued growth in net sales and profitability year-over-year, driven by the ongoing success of CrazyLabs' game Sled Surfers."
"The operating segment Fellowship Entertainment delivered a resilient result, above internal expectations in a quiet quarter, demonstrating the strength of our catalog across franchises including Kingdom Come Deliverance, Metro, Tomb Raider and Dead Island, and supported by disciplined execution."
On the topic of Tomb Raider, Embracer Group says the "current financial year is anchored by Metro 2039 and Tomb Raider Legacy of Atlantis, both expected to be released in February, 2027."
Looking ahead, Embracer Group says: "In FY 2027/28, we expect the release of the next game in the Kingdom Come franchise from Warhorse Studios, Darksiders 4 from Gunfire Games, as well as the externally published Tomb Raider Catalyst from Crystal Dynamics along with Flying Wild Hog and Eidos Montreal."
Concluding, Phil Rogers says: "The planned spin-off of Fellowship Entertainment is progressing well toward calendar year 2027. We expect to host a Capital Markets Event, which will be an important step in setting out our equity stories, strategic priorities and financial frameworks."
"While the spin-off process is an important step in shaping the future of both companies, our day-to-day focus remains firmly on execution. Kaizen, the philosophy of continuous improvement, is central to how I think about the next phase of our journey. We will consistently seek ways to refine our execution and value creation, ensuring that every step forward enhances our processes and our performance. Over time, this generates powerful results."
