THQQF (Embracer Group AB) Operating Income: $-737 Mil (TTM As of Mar. 2026)

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THQQF Embracer Group AB THQQF
66 GF Score
Price $6.90
GF Value $4.28
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Embracer Group AB Operating Income?

Embracer Group AB THQQF 66 Operating Income is $-737 Mil as of Mar. 2026. GuruFocus rates THQQF with a GF Score™ of 66/100 and a GF Value™ of $4.28 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Embracer Group AB's Operating Income for the three months ended in Mar. 2026 was $-775 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $-737 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Embracer Group AB's Operating Income for the three months ended in Mar. 2026 was $-775 Mil. Embracer Group AB's Revenue for the three months ended in Mar. 2026 was $422 Mil. Therefore, Embracer Group AB's Operating Margin % for the quarter that ended in Mar. 2026 was -183.77%.

Embracer Group AB's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Embracer Group AB's annualized ROC % for the quarter that ended in Mar. 2026 was -113.12%. Embracer Group AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -2,998.86%.


Embracer Group AB  (OTCPK:THQQF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Embracer Group AB's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-3101.36 * ( 1 - 0.69% )/( (3101.737 + 2343.945)/ 2 )
=-3079.960616/2722.841
=-113.12 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3744.875 - 180.879 - ( 524.668 - max(0, 620.864 - 1083.123+524.668))
=3101.737

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2876.186 - 145.323 - ( 532.027 - max(0, 588.482 - 975.4+532.027))
=2343.945

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Embracer Group AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-2960.116/( ( (99.64 + max(-108.14, 0)) + (97.776 + max(-122.57, 0)) )/ 2 )
=-2960.116/( ( 99.64 + 97.776 )/ 2 )
=-2960.116/98.708
=-2,998.86 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(277.721 + 88.449 + 31.743) - (180.879 + 0 + 325.174)
=-108.14

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(198.128 + 84.253 + 80.603) - (145.323 + 0 + 340.231)
=-122.57

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Embracer Group AB's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=-775.34/421.908
=-183.77 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Embracer Group AB Operating Income Related Terms


Embracer Group AB Operating Income Historical Data

* Premium members only.

The historical data trend for Embracer Group AB's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Embracer Group AB Operating Income Chart

Embracer Group AB Annual Data
Trend Dec15 Dec16 Dec17 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -127.44 20.90 -11.62 -7.40 6.87

Embracer Group AB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 468.08 -27.02 -7.90 73.28 -775.34
THQQF
66GF Score
Embracer Group AB THQQF
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Embracer Group AB Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-737 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $-737 Mil mean?
Embracer Group AB (THQQF) has a Operating Income of $-737 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Embracer Group AB and its competitors.
Is Embracer Group AB's Operating Income too high?
Embracer Group AB's current Operating Income is $-737 Mil. Overall, Embracer Group AB has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Embracer Group AB's Operating Income compare to NTES and EA?
Embracer Group AB's Operating Income of $-737 Mil can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Interactive Media company?
A good Operating Income depends on the Interactive Media industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Embracer Group AB and its competitors. Embracer Group AB's current Operating Income is $-737 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Embracer Group AB stock overvalued right now?
Based on GuruFocus' analysis, Embracer Group AB (THQQF) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.28, compared to a current price of $6.90 — trading 61.2% above its estimated fair value. The current Operating Income is $-737 Mil. Embracer Group AB's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Embracer Group AB (THQQF), the current Operating Income is $-737 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Embracer Group AB (THQQF) Overvalued in 2026?

Based on GuruFocus' analysis, Embracer Group AB stock appears to be overvalued. The current stock price of $6.90 is trading 61.2% above its estimated GF Value™ of $4.28. GuruFocus considers Embracer Group AB to be Significantly Overvalued.

Key valuation signals for THQQF:

  • Operating Income: $-737 Mil
  • GF Value™: $4.28 vs. price of $6.90 (61.2% above fair value)
  • GF Score™: 66/100 with 4 warning signs

No single metric tells the full story. See the THQQF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Embracer Group AB Business Description

Address Tullhusgatan 1B, Karlstad, SWE, 652 09
Embracer Group AB is a parent company of businesses led by entrepreneurs in PC, console, mobile, and board games and other related media. The Group has an extensive catalog of several owned or controlled franchises and has a presence in various regions through its operative groups, namely THQ Nordic, Plaion, Coffee Stain, Amplifier Game Invest, and others. Its operating segments are: PC/Console Games, Mobile Games, and Entertainment & Services. Maximum revenue is derived from the Entertainment & Services segment, which is engaged in the development, publishing, and distribution of comic books, wholesale of publishing titles of games for console and PC, as well as films, and externally distributes films and TV series. Geographically, the Group generates maximum revenue from the USA.
66GF Score

Get the complete analysis for THQQF

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$6.90
Price
$4.28
GF Value