Embracer: quarterly Cash EBIT of SEK 203 million and sales up 14%

Embracer Group closed the second quarter of fiscal 2026/27, July to September, with net sales of SEK 4,127 million, up 14% on the same period of 2025 (SEK 3,628 million). Organic growth was 20%. The results were published on 11 November at 7:00 a.m. Rome time.

Cash EBIT, the metric the group uses to measure itself, rose to SEK 203 million from -SEK 66 million a year earlier, with a margin of 5%. Operating profit (EBIT) came in at SEK 121 million, against a loss of SEK 141 million. Operating cash flow was SEK 731 million (SEK 249 million a year ago), and free cash flow, after changes in working capital, turned positive at SEK 55 million (-SEK 508 million).

Two segments, two trajectories

The Embracer segment, which includes the PC/console, Mobile and Entertainment & Services business areas, posted sales of SEK 3,082 million (+21%) and Cash EBIT of SEK 128 million (-SEK 109 million a year ago). Fellowship Entertainment, the part of the group that houses its development studios and licences and which the group intends to spin off and list in 2027, fell 3% to SEK 1,045 million but grew Cash EBIT by 28% to SEK 124 million. According to CEO Phil Rogers, licensing was driven by royalties from Wizards of the Coast's Magic: The Gathering | The Hobbit; in the catalogue, the Kingdom Come: Deliverance, Remnant, Dead Island and METRO series performed well.

Headcount down

The group has a headcount of 4,936, including employees and contractors, compared with 6,165 in September 2025 and 5,740 at the end of March 2026: more than 1,200 fewer people in a year.

Outlook

Embracer confirmed Cash EBIT of at least SEK 1.0 billion for the full 2026/27 fiscal year and expects third-quarter Cash EBIT to be "broadly in line" with the same period last year. The release schedule cited by Rogers includes Warhammer 40,000: Dawn of War IV on 3 December, RedOctane Games' Stage Tour on 10 December, the full version of Titan Quest II on 19 January 2027, METRO 2039 on 4 February 2027 and Tomb Raider: Legacy of Atlantis on 12 February 2027. For METRO 2039 the company reports more than 2 million wishlists; for Titan Quest II, "well over" 500,000 copies sold in early access.

The Statcade data

In the Statcade catalogue, updated at 10:05 a.m. on 11 November (Rome time), Kingdom Come: Deliverance II, one of the titles Embracer cites as catalogue drivers, had 6,619 concurrent players on Steam.