Embracer Group has released its financial results for the nine months ended December 31, 2025, reporting declines in overall net sales across its PC/console and mobile gaming divisions.
While it also reported declines in the third quarter, Embracer CEO Phil Rogers called this period a “clear improvement”, citing the success of its core IPs.
Here’s what you need to know:
The numbers
For the three months ending December 31, 2025
Net sales: SEK 5.1 billion ($569.2 million), down 26% year-on-year, including:
- PC/console games: SEK 1.9 billion ($212 million), down 11%
- Mobile games: SEK 566 million ($63.1 million), down 66%
Net profit: SEK 477 million ($53.1 million, compared to net profit of SEK 806 million / $89.9 million during the same period last year)
For the nine months ending December 31, 2025:
Net sales: SEK 11.9 billion ($1.3 billion), down 26% year-on-year, including:
- PC/console games: SEK 5 billion ($557 million), down 22%
- Mobile games: SEK 1.6 billion ($178 million), down 63%
Net loss: SEK 20 million ($2.2 million, compared to net loss of SEK 1.5 billion / $167.4 million during the same period last year)
The highlights
The drop in net sales in Q3 was attributed to lower foreign exchange rates, negative organic growth, and the divestment of Easybrain in its mobile segment.
Despite this decline, Embracer CEO Phil Rogers described the period’s profitability as a “clear improvement” over Q1 and Q2.
This was driven by its core IPs, including Kingdom Come: Deliverance, Dead Island, and Tomb Raider, which exceeded expectations in engagement and earnings.
Embracer recorded strong sales of Warhorse Studios’ Kingdom Come: Deliverance 2 after its third expansion launched. The game has now surpassed five million copies in its first year of release.
Net sales from new releases in its PC and console segment were SEK 228 million ($25.4 million), up 25% year-on-year. SpongeBob SquarePants: Titans of the Tide and Let’s Sing 2026 were the main contributors.
Revenue from back catalogue releases, including platform deals, was SEK 1.3 billion ($145.4 million), down 10% year-on-year. The top five revenue drivers were Kingdom Come: Deliverance 2, Killing Floor 3, MX vs ATV: Legends, and Shadow of the Tomb Raider.
Looking at Embracer’s mobile segment, it attributed the 66% decline in net sales to lower user acquisition costs (UAC) and the divestment of Easybrain.
The firm noted a “steady performance” from DECA Games during its third quarter, while CrazyLabs experienced negative growth and lower UCA “despite the successful scaling and growth of a new game, Sled Surfers, in December.”
The top five mobile titles during Embracer’s third quarter were Glow: Fashion Idol, Party in My Dorm, Flop House, Coffee Mania, and Sled Surfers.
Looking ahead, CEO Phil Rogers said Embracer’s focus “remains on executing against a well-defined pipeline of major game releases over the next three years.”
“For the next financial year, we look forward to one long-awaited, major, in-house developed and in-house published title together with a range of important mid-sized titles. Execution discipline will be critical to converting this stronger pipeline into a clear profitability and cash generation inflection point in FY 2026/27.”
