Q3 2026 Embracer Group AB Earnings Call Transcript

Feb 12, 2026 / 08:00 AM GMT

Release Date Price: kr54.45 (+17.17%)

Transcript

Key Points

Positve

Kingdom Come Deliverance 2 achieved significant success with 5 million copies sold within the first year of launch.
The company reported adjusted EBIT of 528 million SEK, which was ahead of their plans and showed improvement over previous quarters.
Embracer Group AB (THQQF) holds a strong IP portfolio with globally recognized franchises like Lord of the Rings, Tomb Raider, and Metro.
The company is focusing on an IP-first strategy, increasing CapEx allocation to core IPs from 20% to 40%, with plans to reach 80% in the future.
The divestment of non-strategic and unprofitable businesses improved focus and capital efficiency, contributing to better financial performance.

Negative

Total net sales experienced an 8% organic drop year over year, primarily due to tough comparisons in entertainment and services.
Free cash flow generation over the trailing 12 months was slightly negative, although improved from the previous year.
The PC console segment saw a 3% organic decline in net sales, with new releases underperforming expectations.
Mobile segment net sales dropped by 15% organically year over year, impacted by lower user acquisition cost growth investments.
The adjusted EBIT margin of 13% indicates challenges in profitability, with room for improvement in operational efficiency.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

EMBRACb.ST - Embracer Group AB
Q3 2026 Embracer Group AB Earnings Call
Feb 12, 2026 / 08:00AM GMT

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Presentation
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Unidentified_1 [1]
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Thank you.

And good morning everyone and thank you for joining our webcast today.

And let's just take a moment to set the scene on the performance, today, but really the performance of Kingdom Come Deliverance 2, which cop5 millionies sold, that was announced today but actually achieved within the 1st year from launch. Now we've talked a lot about core IP at our recent conferences, and I think this is a great example of a core IP, an owned IP created by our studio, War Horse, based in Prague. And a studio sitting at the center of our future strategy as we build out games, delighting millions of players.

Around the world.

Keeping on the game theme, last night, European time, the press embargo lifted

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