Embracer Group FY2025 Q3 Earnings Release

OCTOBER –DECEMBER 2025
Q3
FY 2025/26
EMBRACER GROUP
INTERIM REPORT

Disclaimer
Q3 INTERIM REPORT FY 2025/26
IMPORTANT INFORMATION –PLEASE READ THE FOLLOWING BEFORE CONTINUING READING
This presentation (the “Presentation ”) has been prepared by Embracer Group AB (“Embracer ” or the “Company”) and
is provided for information purposes only. By attending a meeting where this Presentation is presented or by accessing
information contained in or obtained from the Presentation, including by reading this Presentation, you agree to be
bound by the following limitations and notifications.
This Presentation may not be used for, or in connection with, any offer to, or solicitation by, any person in any
jurisdiction or under any circumstances. This Presentation does not constitute or form part of, and should not be
constructed as, any offer, invitation, solicitation or recommendation to purchase, sell or subscribe for any securities in
the Company in any jurisdiction and does not constitute any form of commitment or recommendation on the part of
Embracer or anyone else. The Presentation is intended to present background information on the Company and is not
intended to provide complete disclosure. Readers of the Presentation should not treat the contents of this Presentation
as an advice relating to legal, taxation, investment or any other matters. Neither the Presentation, nor any part of it, shal l
form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This presentation is not
a research report. The Company and its affiliates, directors, advisors, employees and representatives disclaims any and
all liability for direct and indirect consequences resulting from decisions which are wholly or partly based on information
in the Presentation. The Presentation does not constitute and should not be considered as any form of financial opinion,
advice or recommendation by the Company or anyone else.
This Presentation is not a prospectus in accordance with the (EU) 1129/2019 Prospectus Regulation and has not been
approved or reviewed by any governmental authority or stock exchange in any jurisdiction in the EEA. Nor has the
Presentation been reviewed or approved by any other regulatory authority or stock exchange globally.
The distribution of the Presentation in certain jurisdictions may be restricted by law and persons into whose possession
the Presentation comes should make themselves aware of the existence of, and observe, any such restriction. The
securities of the Company have not been and will not be registered under the U.S. Securities Act, as amended (the
“ Securities Act ”), or under any of the relevant securities laws of any state or other jurisdiction of the United States and
the Company does not intend to make a public offer of its securities in the United States.
Certain information contained in this Presentation (including market data and statistical information) has been obtained
from various sources prepared by other parties (including third party sources) that the Company has deemed to be
relevant and trustworthy. Moreover, certain information in the Presentation is based on assumptions, estimates and
other factors that were available to the Company at the time of when the information was prepared. Such assumptions,
estimates or other factors, either made by the Company or by third parties, may prove to be, or become, incorrect, thus
rendering the information in the Presentation to be inaccurate, incomplete or incorrect. No representation or warranty, express or implied, is made by the Company or any of its affiliates, directors, advisors, employees and representatives
as to the accuracy, completeness or verification of any information contained in this Presentation. The Company has not
made any independent review of information based on public statistics or information from any independent third
parties regarding the market information that has been provided by such third party, the industry or general
publications. Financial information contained in the Presentation is not necessarily directly extracted from the
Company’s accounting systems or records. No information in the Presentation has been independently reviewed or
verified by the Company’s auditors unless explicitly stated otherwise. In addition, certain financial information may be
preliminary and has yet not been finalized, be forward
-looking, or subject to review/audit from the Company’s auditors.
Accordingly, such preliminary financial information may change. Furthermore, certain financial information in this
Presentation has been prepared for illustrative purposes only and is solely intended to describe the hypothetical
situation of if the acquired companies were part of Embracer for the periods referred to in the Presentation.
Statements in this Presentation, including those regarding the Company’s and its industry’s possible or assumed future,
the Company’s business strategies, its expansion and growth of operations, future events, objectives, trend projections
and expectations, or other performance of the Company or its industry, constitute forward -looking statements. By their
nature, forward -looking statements involve known and unknown risks, contingencies, uncertainties, assumptions and
other factors as they relate to events and depend on circumstances that will or may occur in the future, whether or not
outside the control of the Company. No assurance is given that such forward -looking statements will prove to be
correct. Prospective investors should not place undue reliance on forward -looking statements and they speak only as of
the date of this Presentation. Past performance does not guarantee or predict future performance. Moreover, the
Company does not undertake any obligation to review, update or confirm expectations or estimates or to release any
revisions to any forward -looking statements to reflect events that occur or circumstances that arise in relation to the
content of this Presentation unless required by law or Nasdaq Stockholm’sGrowth Market’s Rulebook for issuers. The
Company and its affiliates, directors, advisors, employees and representatives expressly disclaim any liability
whatsoever for such forward -looking statements.
This Presentation as well as any other information provided by or on behalf of Company in connection herewith shall be
governed by Swedish law. The courts of Sweden, with the District Court of Stockholm as the first instance, shall have
exclusive jurisdiction to settle any conflict or dispute arising out of or in connection with this Presentation or related
matters.
2

What we cover today
Q3 INTERIM REPORT FY 2025/26
Highlights
Operating segments
 PC/Console Games
 Mobile Games
 Entertainment & Services
Financial performance
Looking ahead
Q&A
3

4

5
9/10
Nintendo Life
9/10
GamingBolt
8/10
Push Square
8.5/10
PlaystationUniverse
84/100
COGconnected
4/5
Eurogamer
8/10
GameSpot

Highlights from Q3
Q3 INTERIM REPORT FY 2025/26
Source: as of December 31, 2025 | 1 Excludes discontinued operations (Asmodee and Coffee Stain)
Net sales |Q3
SEK 5,176 m
-26% YoY (-8% organic)
Adjusted EBIT |Q3
SEK 528 m
(SEK 948 m)
(or SEK 678 m excl. divested assets)
Free cash flow 1|TTM
SEK -15 m
(SEK – 399 m)
6
Higher underlying
expectations for FY 2025/26 Core IPscontinue to drive
outperformance
Sharper strategic focus
following the Coffee Stain Group spin-off 11 Dec

Operating segments
1.

15%
33%
-1%
-4%
13%
– 10 % – 5%
0%
5%
10% 15%
20% 25%
3 0%
35%
4 0% 0
1,000
2,000 3,000
4,000
Q3 Q4 Q1Q2 Q3
FY 24/25 FY 25/26
Stable organic development, driven by solid back catalog
performance across core IPs such as Kingdom Come:
Deliverance, Tomb Raider and Dead Island
 A slow quarter for new releases, which included
SpongeBob SquarePants: Titans of the Tide. Other net
sales decreased YoY due lower work -for -hire revenue
 The Adjusted EBIT margin was down slightly YoY, but with
a marked improvement QoQ driven by back catalog
performance.
Source: as of December 31, 2025
PC/Console Games |Q3
SEK 1,989 m
Growth: -11% | Organic growth: -3%
SEK m
Net sales Back catalog
Net sales New releases
Net sales Other
Adjusted EBIT
COMMENTS PERFORMANCE
8
NET SALES DRIVERS | Q3 FY 2025/26

The value of completed games
amounted to approximately
SEK 598 million in Q3
 The weighted average ROI of all
titles decreased to 1.8x
9
Source: as of December 31, 2025
PC/Console Games |ROI
COMMENTS
1.0x | Break even
ROI (CONTRIBUTION/INVESTMENT)
1.8x | Average all titles
Times
Quarters since release Based on reported numbers until December 31, 2025 |Sample includes projects with sales and/or investments above SEK 40 millions
ROI = Contribution / Investment |Contribution = Gross Profit less marketing expenses from release to December 31, 2025
Investment = Capitalized Development Expenses including follow -on investment |Projects released by divested companies and discontinued operations are excluded
0x2x 4x
6x 8x
10x 12x 14x
0 4812 1620 2428 323640
Dataset 2016-2025
No. Projects 101
Investments SEK 10.4 bn
Contribution SEK 18.8bn
Net Sales SEK 26.6 bn

10 For latest release dates please refer to above mentioned publishers | * Also includes titles from the Entertainment & Services segment
PC/Console |Pipeline details
Selected upcoming releases
 Ride 6 |12 February 2026
 REANIMAL |13 February 2026
 NORSE: Oath of Blood |17 February 2026
 Screamer |26 March 2026
 Tides of Tomorrow |22 April 2026
 Gothic 1 Remake |5 June 2026
Still to be dated
 Warhammer 40 000: Dawn of War IV |CY 2026
 Tomb Raider: Legacy of Atlantis |CY 2026
 Tomb Raider: Catalyst |CY 2027
 Fatekeeper
 Darksiders 4
 The Eternal Life of Goldman
 MARVEL 1943: Rise of Hydra
 Deus Ex Remastered
 And more…
30 Announced titles to -date
*

24%
10% 11% 12% 14%
0% 10%
20% 3 0%
4 0% 50%
60%
70%
80% 90%
100% 0
500
1,000 1,500
2,000
Q3 Q4 Q1Q2 Q3
FY 24/25 FY 25/26
Organic growth YoY impacted by lower UAC with a
gradual scaling of Glow Fashion Idol
 Solid sales and earnings trend in recent quarters. The
lower profitability YoY is explained by the Easybrain
divestment
 New game release Sled Surfers showing positive top line
momentum in Q4 and into 2026
 Top -5 titles
1: Glow Fashion Idol, Party in my Dorm, Flop
House, Coffee Mania and Sled Surfers .
Source: as of December 31, 2025 | 1Top-5 revenue generating titles in the quarter
Mobile Games |Q3
SEK m
Net sales DECA Net sales Easybrain Adjusted EBIT
COMMENTS PERFORMANCE
11
SEK 566 m
Growth:-66% | Organic growth: -15%
NET SALES DRIVERS | Q3 FY 2025/26
Glow Fashion
Idol Party in my
Dorm Flop House
Coffee Mania Sled Surfers

Seasonal uptick in sales and earnings driven by PLAION
Partners, Limited Run Games and Dark Horse Media
 Organic growth impacted by PLAION Partners, partly
offset by a slight margin improvement YoY
 Middle -earth Enterprises entered into a strategic
agreement with Asmodee Group in the quarter.
Source: as of December 31, 2025
Entertainment & Services |Q3
Growth: -15% | Organic growth: -10%
Net sales Adjusted EBIT
COMMENTS PERFORMANCE
Magic The Gathering: Tales of Middle -earth, © & TM Mee under lic. to Wizards of the Coast
12
9%
2% 3% 3%
10%
0% 2%
4% 6%
8%
10%
12% 14%
16% 18%
20% 0
1,000
2,000 3,000
4,000
Q3 Q4 Q1Q2 Q3
FY 24/25 FY 25/26
SEK 2,621 m
SEK m

Financial performance
2.
Magic The Gathering: Tales of Middle-earth, © & TM Mee under lic . to Wizards of the Coast

840254
206
165
15%
8%
0% 2%
4% 6% 8% 10%
12%
14% 0
500
1,000
Q3 Q4 Q1Q2 Q3
FY 24/25 FY 25/26
Financial development
FINANCIAL PERFORMANCE |Q3 FY 2025/26
Source: as of December 31, 2025 | 1Excluding Items Affecting Comparability | Excludes discontinued operations (Asmodee and Coffee Stain)
NET SALES & GROSS MARGIN DEVELOPMENT | SEK million DEVELOPMENT OF MARKETING EXPENSES | SEK million
DEVELOPMENT OF OPERATING EXPENSES, NET | SEK million ADJUSTED EBIT | SEK million
14
Net sales Gross profit % 1 Marketing, UAC Marketing as % of Net sales Marketing, non UAC
Operating Expenses (Excl. Marketing) 1 As % of sales Adjusted EBIT Adjusted EBIT %
6,985
5,176
58% 55%
0% 20%
4 0%
60% 80%
100% 120% 14 0% 0
2,000 4,000
6,000 8,000
Q3 Q4 Q1Q2 Q3
FY 24/25 FY 25/26
1,311
1,246
19%
24%
0% 5% 10%
15% 20% 25% 3 0%
35% 4 0%
45% 0
500
1,000 1,500
Q3 Q4 Q1Q2 Q3
FY 24/25 FY 25/26
948
528
14% 10%
0% 5% 10%
15% 20%
25% 3 0%
35% 4 0% 45% 50% 0
250
500 750
1,000
Q3 Q4 Q1Q2 Q3
FY 24/25 FY 25/26

Cash flow and net cash
FINANCIAL PERFORMANCE |Q3 FY 2025/26
Source: as of December 31, 2025
SEKm FY25/26
Q3 FY24/25
Q3 FY 25/26
Q3 TTM FY 24/25
Q3 TTM
Adjusted EBITDA 1,1961,722
4,528 5,993
Cash Tax -71 -187 -434 -693
Other items 9
-369 –
402 -906
Operating Cash flow 1,1331,166
3,693 4,349
Net investment in intangible assets -763 -836 -3,046 -4,023
Net investment in tangible assets -8 -25 -71 -130
Net investment in financial assets -97 -27 -64
Net Investment -771 -764 -3,144 -4,217
Free Cash Flow before working capital 362402
549 177
Change in working capital –
437 317-564 -576
Free Cash Flow after working capital -75 719 -15 -399
Cash Flow from financing activities -766 -56 -9,910 -2,340
Net cash flow from acquired/divested
companies/ Investments in other companies –
297 -430 12,011 3,922
Cash effect IAC costs -53 19-285 -443
Discontinued operations 4956545,162 473
Cash Flow for the period -696 9056,963 1,213 SEKm Dec. 31,
2025 Dec.
31,
2024
Cash 4,8763,258
Current liabilities to credit institutions –
901 -589
Non -current liabilities to credit institutions
-1,108 -5,883
Net Cash(+) / Net Debt (- )
2,866
-3,216
 Q3 Free Cash Flow after WC lower YoY due to timing in
working capital expected to unwind in Q4
 TTM Free Cash Flow after WC improved YoY despite a
significant contribution from divestments of around
700 SEKm in the comparison period
 Cash Flow for the period of -696 SEKm impacted by
share buy -backs, earn -out payments, divestments and
spin -off
 Available funds at 31st of December 2025 amounted to
5.8 SEKbn .
15

Net cash bridge | Q3 FY 2025/26
FINANCIAL PERFORMANCE |Q3 FY 2025/26
16 Source: as of December 31, 2025
Q3 FY 2025/26
Maintained strong net cash
position after key strategic and
corporate actions completed in
Q3
Estimated earn -out obligations
to be paid over the next
six financial years now
amounts to only 730 SEKm.
COMMENTS
4,237
1,133
-771
-437
-428
-495
219
-516 -76
2,866
0
1,000
2,000
3,000
4,000
5,000
6,000
FCF after WC SEK -75m
M&A and financial cash flow SEK -1,296m
SEK m

Higher underlying forecast
FINANCIAL PERFORMANCE |Q3 FY 2025/26
17 Source: as of December 31, 2025
 The forecast compares to our previous expectation of at least SEK 1.0 billion, which
included Coffee Stain Group for the full FY 2025/26
 We see upside potential to our forecast from the underlying business performance.
Adjusted EBIT at least SEK 750 million

Looking ahead
3.

Concluding remarks
Q3 INTERIM REPORT FY 2025/26
 Core IPs continued to outperform in Q3, driving higher underlying forecast
 Executing against well-defined pipeline with at least one major in- house title from FY 2026/27,
together with a range of important mid -sized titles
 Focusing on three strategic priorities to further improve profitability and cash flow generation:
 IP -led focus: Capex shifting toward higher- return core IP (20% 40% to 80% of capex)
 Operational discipline: Targeting continued opex/ capex reduction next financial year
 Targeted cost initiatives: Divestment of several non- strategic and unprofitable businesses
in the quarter (Adj. EBIT of -178 SEKm TTM)
 Embracing and significantly experimenting with AI, as the technology advances at pace
 Our broader long -term strategic direction is taking shape: IP-first group, centered around our
best talents, studios, and franchises.
19 Source: as of December 31, 2025

UNTIL ~10:00 CET
QUESTIONS &
ANSWERS