Embracer Group FY2026 Q1 Earnings Release

APRIL 2026 –JUNE 2026
Q1
FY 2026/27
EMBRACER GROUP
INTERIM REPORT

Disclaimer
Q1 INTERIM REPORT |FY 2026/27
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2

What we cover today
Q1 INTERIM REPORT |FY 2026/27
Highlights from the quarter
Operating segments
 Fellowship Entertainment
 Embracer
Financial development
Q&A
3

Highlights from Q1 2026/27
Q1 INTERIM REPORT |FY 2026/27
Source: as of June 30, 2026 4
Financial Highlights | SEK
Comments
NET SALES
3,943 m
24% YoY (33% organic)
CASH EBIT
47 m
(-99 m)
FREE CASH FLOW
3 m
(-383 m)
Growth and earnings
development above plan in Q1 Intact FY 2026/27 outlook, with
strong traction for METRO 2039
Fellowship Entertainment spin-off progressing well planned for CY 2027

Improving growth and earnings trajectory
Q1 INTERIM REPORT |FY 2026/27
5 Source: as of June 30, 2026| All periods excludes discontinued operations (Asmodee & Coffee Stain Group)
16,678
2%
-9%
-3%
5%
– 15 %
– 10 % – 5%
0%
5%
10%
15%
20% 25%
3 0% 0
5,000
10,000 15,000
20,000 25,00030,000
FY 23/24 FY 24/25FY 25/26TTM Q1 26/27
657
3%
10%
3% 4%
0%
5%
10% 15%
20%
25%
3 0% 0
500
1,000 1,500
2,000 2,500
FY 23/24 FY 24/25FY 25/26TTM Q1 26/27
NET SALES AND ORGANIC GROWTH | SEK million CASH EBIT AND CASH EBIT MARGIN | SEK million
Net sales Organic growth % Cash EBIT Cash EBIT margin %

Operating segments

Two segments with respective business areas
Q1 INTERIM REPORT |FY 2026/27
1Mainly divested assets
EMBRACER
FELLOWSHIP ENTERTAINMENT
/ PC/CONSOLE /
MOBILE ENTERTAINMENT
/ & SERVICES
/OTHER
1
/PUBLISHING & DEVELOPMENT /LICENSING
7

Fellowship Entertainment delivered a resilient quarter, with limited
new content across Publishing & Development and Licensing.
 Cash EBIT above internal expectations due to catalog
performance from Kingdom Come Deliverance, Metro, Remnant
and Dead Island.
 Adjusted EBIT amounted to SEK 159 million, for a margin of 20%.
Fellowship Entertainment: Highlights
8 Source: as of June 30, 2026
SEKm
Net sales Publishing & Development Net sales Licensing
Cash EBIT margin
COMMENTS PERFORMANCE
NET SALES DRIVERS | Q1 FY 2026/27
Growth:-23% | Organic growth: -22%
14%
-4%
0
500
1,000 1,500
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
810 m
OPERATING SEGMENT |FELLOWSHIP ENTERTAINMENT
1,058 m

Publishing & Development: Net sales drivers
9 Source: as of June 30, 2026
PUBLISHING & DEVELOPMENT – TYPE OF INCOME | NET SALES
352 267
636
494
0
500
1,000 1,500
2,000 2,500
Q1 Q2 Q3Q4 Q1Q2 Q3Q4 Q1
FY 24/25 FY 25/26FY 26/27
Growth:-23%
Other Revenue
Catalog New releases
OPERATING SEGMENT | FELLOWSHIP ENTERTAINMENT
FY 2026/27
Q3: Warhammer 40 000: Dawn of War IV
 Q3: Stage Tour
 Q4: Tomb Raider: Legacy of Atlantis
 Q4: METRO 2039
FY 2027/28
 Kingdom Come
 Darksiders 4
Game release rhythm
At least two major game releases with full
economics per year
SEKm

Fellowship Entertainment: Key financials
Source: as of June 30, 2026
KEY DRIVERS Q1 FY 2026/27
Net sales impacted by strong
Kingdom Come: Deliverance II
comparator resulting in organic
growth of – 22%
 Solid catalogue performance
on Core IP’s
 Gross margin impact partly
offset by opexsavings
 Cash EBIT of -32m SEK
impacted by strong comparator
and limited new content in
Publishin g & Development and
Licensing
FY
2024/25 FY
2025/26 FY
2026/27
SEK million Full yearQ1Q2 Q3Q4Full year Q1
Net Sales 5,5241,0581,0721,359 8554,345 810
Gross Profit 4,5818998781,085 6943,556 687
Operating Expenses, Net -1,926 -455 -489 -474 -406 -1,823 -414
Marketing -296 -45 -46 -51 -33 -175 -41
UAC 00000 00
Other Operating Expenses -1,630 -410 -443 -423 -373 -1,649 -373
Adjusted EBITDA 2,655444389 611289 1,732 273
Depreciation, amortization and
impairment –
811 -207 -140 -132 -118 -596 -114
Adjusted EBIT 1,843237249 479 171 1,137 159
Capex -1,350 -271 -271 -390 -307 -1,238 -288
Leasing -92 -21 -21 -19 -17 -78 -17
Cash EBIT 1,21315297202 -36 416 -32
Gross Margin (%) 83%85%82%80% 81% 82% 85%
Adjusted EBIT margin (%) 33%23%
23%35%20% 26%20%
Cash EBIT margin (%) 22%14%9%15% -4% 10% -4%
OPERATING SEGMENT | FELLOWSHIP ENTERTAINMENT
10

Publishing & Development: Titles announced-to- date
11 Source: as of August 13, 2026| For latest release dates please refer to respective publishers
Publishing & Development
Core upcoming releases
Warhammer 40 000: Dawn of War IV
| PC
Stage Tour | PC, XB X|S, PS5, Switch 2
Tomb Raider: Legacy of Atlantis | PC, XB X|S, PS5 ,Switch 2
METRO 2039 | PC, XB X|S, PS5
Darksiders 4 | PC, XB X|S, PS5
Kingdom Come | TBC
Tomb Raider: Catalyst | PC, XB X|S, PS5
New iterations of previous releases
Deus Ex Remastered
| PC, XB X|S, PS5, Switch
Thief: The Dark Project Remastered | PC, XB X|S, PS5, PS4, Switch, Switch 2 12 February 2027
February 2027
3 December 2026
FY 26/27 anchored by Metro, Tomb Raider, Warhammer 40k: Dawn of War IV
Holiday 2026
CY 2028
FY 2027/28
FY 2027/28
TBD
TBD
OPERATING SEGMENT | FELLOWSHIP ENTERTAINMENT

Licensing: Expanding our IPs with world class partners
12 Magic: The Gathering® | The Hobbit , © & TM Mee under lic. to Wizards of the Coast
OPERATING SEGMENT | FELLOWSHIP ENTERTAINMENT

The Embracer operating segment delivered 63% organic growth,
with growth across all segments
 Core revenue drivers included the successful new release of
Gothic 1 Remake and the catalog performance of REANIMAL,
along with Sled Surfers in Mobile, and very strong growth for
Entertainment & Services, driven by PLAION Partners
 Cash EBIT improved significantly YoY, driven by PC/Console
 Adjusted EBIT amounted to SEK 49 million, for a margin of 2%.
Embracer: Highlights
13 Source: as of June 30, 2026
COMMENTS PERFORMANCE
CORE REVENUE DRIVERS IN THE QUARTER
SEKm
Net sales PC/Console
Net sales Entertainment & Services
Cash EBIT margin %
Growth:48% | Organic growth: 63%
-9%
4%
0
1,000
2,000 3,000
4,000
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
3,134 m
Net sales Mobile
Net sales Other
OPERATING SEGMENT | EMBRACER
2,113 m

Embracer: Business area performance
14 Source: as of June 30, 2026| 1Total also includes business area Other
PC/CONSOLE NET SALES | SEK million MOBILE NET SALES AND | SEK million
ENTERTAINMENT & SERVICES NET SALES | SEK million TOTAL 1) NET SALES AND GROSS MARGIN | SEK million
OPERATING SEGMENT| EMBRACER
433 728
0
200 400
600 800
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
520 610
0
200 400
600 800
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
967 1,768
0
1,000
2,000 3,000
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
2,113 3,134
59% 58%
47% 56% 49%
0
1,000
2,000 3,000
4,000
5,000
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
Net sales
Growth:68%
Growth:83%
Net sales
Net sales
Growth:17%
Net sales Gross margin %
Growth:48%

Embracer: Key financials
Source: as of June 30, 2026
KEY DRIVERS Q1 FY 2026/27
Net sales grew 66% organically
with Entertainment &
Services being biggest driver
 Revenue mix drives lower GM%
 Opex and capex reductions
driven by divestments, closures
and restructurings
 Increased UAC supports
Mobile sales performance
 Marketing cost reflects higher
release activity
 Results in significant YoY cash
EBIT improvement
FY
2024/25 FY
2025/26 FY
2026/27
SEK million Full yearQ1Q2 Q3Q4Full year Q1
Net Sales 15,7902,1132,555 3,8173,075 11,561 3,134
Gross Profit 10,2811,2571,492 1,7761,709 6,234 1,522
Operating Expenses, Net -6,678 -940 -1,022 -1,137 -893 -3,993 -965
Marketing -477 -59 -115 -114 -91 -378 -122
UAC -2,510 -222 -241 -254 -353 -1 071 -300
Other Operating Expenses -3,690 -659 -665 -769 -450 -2,544 -543
Adjusted EBITDA 3,604316470 639 816 2,241 557
Depreciation, amortization and
impairment –
2,399 -477 -666 -535 -572 -2,249 -508
Adjusted EBIT 1,205-160 -195 103244 -8 49
Capex -2,158 -465 -534 -397 -367 -1,763 -389
Leasing -219 -44 -45 -40 -33 -161 -32
Cash EBIT 1,227-193 -109 202 416 317 136
Gross Margin (%) 65%59%58% 47%56% 54%
49%
Adjusted EBIT margin (%) 8%-8% -8% 3%8% 0% 2%
Cash EBIT margin (%) 8%-9% -4% 5%14% 3%4%
15
OPERATING SEGMENT | EMBRACER

Financial performance

Group financial development
Q1 INTERIM REPORT |FY 2026/27
Source: as of June 30, 2026 | 1Excluding Items Affecting Comparability
NET SALES & GROSS MARGIN DEVELOPMENT | SEKm
CAPEX | SEKm
DEVELOPMENT OF OPERATING EXPENSES, NET | SEKm
CASH EBIT | SEKm
18
3,171 3,943
68% 65%
55% 61% 56%
0
1,000
2,000 3,000
4,000
5,000
6,000
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
736
677
0
200 400
600 800
1,000
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
-99 47
-3%
-2%
7%
8%
1%
-200
-100 0
100
200 300
400
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
1,126 972
222
300
104163
0
500
1,000 1,500
2,000
Q1 Q2 Q3Q4 Q1
FY 25/26 FY 26/27
Net sales Gross profit % 1
CAPEX
Operating Expenses (Excl. Marketing) 1
Cash EBIT Cash EBIT margin % Marketing, UAC
Marketing,
non UAC

Cash flow and net cash
Q1 INTERIM REPORT | FY 2026/27
19 Source: as of June 30, 2026| 1 Free cash flow definition has changed to include lease payments
SEKm FY 26/27
Q1 FY 25/26
Q1 FY 26/27
Q1 TTM FY 25/26
Full Year
Adjusted EBITDA 775703
3,828 3,757
Capex -677 -736 -2,943 -3,002
Payment of lease liabilities –
51
-66 -229 -246
Cash EBIT 47-
99 657 511
Paid tax and other items 9-122 -582 -713
Free Cash Flow before working capital 56-220 75-201
Change in working capital -54 -162 116 7
Free Cash Flow after working capital
1 3 -383 192-193
Cash Flow from financing activities 259327-1,329 -1,261
Net cash flow from acquired/divested
companies/Investments in other companies –
135 -99 -385 -348
Cash effect IAC costs -81 -58 -299 -276
Cash Flow for the period, Continuing
operations 45
-213 -1,822 -2,080
Discontinued operations 0-1 496 495
Cash Flow for the period 45-214 -1,326 -1,585
SEKm June 30,
2026 June
30,
2025
Cash 4,9976,879
Current liabilities to credit institutions –
825 -1,479
Non -current liabilities to credit institutions
-700 -474
Net Cash 3,473
4,926
Positive FCF of 3 SEKm supported by strong top line
performance, improved profitability and lower capex.
 Cash Flow for the quarter amounted to 45 SEKm, due to
proceeds from borrowings partly offset by share
buyback program, earnout payments and cash IACs.
 Net cash as of 30
th of June 2026 amounted to 3.5
SEKbn . Earnouts amounted to 0.2 SEKbn . Available
funds amounted to 6.4 SEKbn.

Forecast FY 2026/27
Q1 INTERIM REPORT |FY 2026/27
20 Source: as of June 30, 2026
 For the current financial year 2026/27, the Cash EBIT forecast of at least SEK 1.0 billion is
reiterated.
 InQ2, ayear-on -year Cash EBIT improvement in a similar pattern to Q1 is expected.
 Free cash flow is expected to strengthen in line with Cash EBIT year-on -year, with a
weighting towards the second half of the year still expected.
Cash EBIT of at least 1.0 SEK billion

Q&A

Appendix

Revised KPI definitions from Q1 FY 2026/27
Q1 INTERIM REPORT |FY 2026/27
From Q1 FY 2026/27, certain KPI definitions have been revised for greater relevance,
consistency and clarity.
23
Headcount Employees engaged by the Group; external headcount excluded
External Titles Renamed from Published Titles
New Releases All releases in the financial year, not just the quarter
Catalog Renamed from Back Catalog; revenue from titles released in prior financial years
Studios Counted by studio brand instead of location