Enad Global 7 AB (EG7) Q2 2026 Earnings Report

The call conveyed a predominantly positive operational and financial picture: strong consolidated revenue growth (+25% reported, +30% constant currency), substantial adjusted EBITDA expansion (~165% YoY) and margin improvement (up ~1,100 bps to 21%). Multiple business units grew and were profitable, Fireshine delivered a breakout performance, Big Blue Bubble returned to growth and Piranha showed a steady DLC-driven model. The balance sheet and cash generation strengthened, and the product pipeline (Denshattack!, EverQuest Legends, Aliens: Fireteam Elite 2) plus the Cold Iron acquisition present clear upside. Key near-term risks and negatives include currency headwinds, Q2 seasonality at Daybreak, working-capital-driven cash timing (accrued royalties to be paid in Q3), revenue concentration in Fireshine around one hit title, and anticipated Q3 marketing spend for Aliens that may pressure near-term margins. Overall, the highlights outweigh the lowlights, signaling positive momentum but with some execution and timing risks to monitor.

Management guided that Q3 is off to a strong start and expects net revenue to continue improving for the rest of the year driven by Aliens: Fireteam Elite 2 (launch Aug 25; base $50 / premium $70; cross‑play on Steam/Epic/PlayStation/Xbox; Switch 2 later) plus recent releases Denshattack! (>100k units sold, ~250k Game Pass players, 98% Steam rating) and EverQuest Legends (released Jul 28), with EverQuest Legends expected to contribute nicely to Q3 and only limited cannibalization across EQ I/II; Daybreak’s Q2 seasonality should reverse with a Q3 rebound, Q3 marketing spend will be concentrated around Aliens, and Q3 investments excluding the Cold Iron acquisition are expected to be generally similar to Q2; Cold Iron closed Aug 18 and will be leveraged for future content; financial headroom remains strong with cash SEK 344m (net debt SEK 3.6m), unutilized RCF SEK 100m and a SEK 1bn bond frame, while Q2 provides the base (Q2 net revenue SEK 475m, +25% YoY/+30% FX‑neutral; adjusted EBITDA SEK 99m, +165% YoY; adj. EBITDA margin 21%, +1,100 bps; operating cash flow SEK 120m or SEK 94m excluding working capital; LTM net revenue SEK 1.6bn; LTM adj. EBITDA margin 18%).