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Embracer Group AB
(EMBRAC.B)
Select Model
Select Model
Rating:63Neutral
Price Target:
kr80.00
▲(7.64% Upside)
Action:Reiterated
Date:08/19/26
The score is driven by strong technical momentum and an improving financial position (lower leverage and positive TTM free cash flow), but is held back materially by weak and volatile profitability (large recent losses) and a negative P/E that reflects ongoing earnings risk. The very high dividend yield is supportive but raises sustainability concerns given the loss-making profile.
Positive Factors
Low Leverage
The reduced debt burden strengthens financial flexibility and lowers refinancing risk. A healthier capital structure gives Embracer more capacity to fund development, manage delays, and support its portfolio while it works to restore profitability.
Negative Factors
Deep Operating Losses
Sustained operating and net losses weaken retained equity, limit reinvestment capacity, and increase execution risk. The company must convert its intellectual property and studio portfolio into profitable releases rather than relying only on gross profit generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
The reduced debt burden strengthens financial flexibility and lowers refinancing risk. A healthier capital structure gives Embracer more capacity to fund development, manage delays, and support its portfolio while it works to restore profitability.
Read all positive factors
Embracer Group AB (EMBRAC.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr16.46B
Dividend YieldN/A
Average Volume (3M)749.02K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth-31.46%
EPS Growth-169.01%
CountrySE
Employees5,442
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-25.18
Shares Outstanding219,853,130
10 Day Avg. Volume694,113
30 Day Avg. Volume749,019
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.52
Price to Sales (P/S)0.64
P/FCF Ratio-18.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.67
Revenue Forecast (FY)kr17.18B
Embracer Group AB Business Overview & Revenue Model
Company Description
Embracer Group AB (publ), together with its subsidiaries, develops and publishes PC, console, mobile, VR, and board games for the games market worldwide. The company operates through, PC/Console Games, Mobile Games, and Entertainment and Services....
How the Company Makes Money
Embracer Group makes money primarily by developing, publishing, and monetizing video games across PC and console platforms. Its core revenue streams typically include: (1) sales of new games (full-game purchases) distributed digitally (e.g., on ma...
Embracer Group AB Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements such as Asmodee's solid performance and the strategic divestment of Easybrain. However, these were countered by notable challenges including a decline in net sales, negative free cash flow, and underperformance in several game releases. While there are promising prospects with upcoming game releases and a strengthened financial position post-divestment, the current challenges balance out the positive aspects.Positive Updates
Asmodee's Solid Earnings Growth
Asmodee achieved SEK 700 million in profitability for the quarter, demonstrating strong earnings growth year-over-year ahead of their listing and Capital Market Day.
Negative Updates
Decline in Net Sales
Net sales declined by SEK 2.3 billion year-over-year, primarily due to the absence of major releases like Remnant II and Payday 3 and the divestments of Saber and Gearbox.
Read all updates
Q2-2025 Updates
Positive
Negative
Asmodee's Solid Earnings Growth
Asmodee achieved SEK 700 million in profitability for the quarter, demonstrating strong earnings growth year-over-year ahead of their listing and Capital Market Day.
Read all positive updates
Company Guidance
In the recent call, Embracer Group's CEO Lars Wingefors provided guidance for the second quarter of the fiscal year 2025, highlighting several key financial metrics and strategic updates. The company reported net sales of SEK 8.5 billion, a decrease from the previous year due to the absence of significant releases like Remnant and Payday. Despite this, Asmodee, a key segment, showed solid earnings growth with SEK 700 million in profitability. However, the PC/Console segment faced challenges, with a 33% decline in organic growth and an adjusted EBIT margin of 8% due to delays and weaker returns on investment. The mobile games segment performed well, generating SEK 1.3 billion in revenue with a 28% adjusted EBIT margin. The company also announced the transformative divestment of Easybrain for USD 1.2 billion, expected to significantly strengthen Embracer's financial position, reducing net debt to SEK 500 million on a pro forma basis. Looking ahead, key releases like Kingdom Come: Deliverance II and the remastered Legacy of Kain series are expected to support future growth.Embracer Group AB Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.90B | 15.91B | 22.37B | 42.21B | 37.66B | 17.04B |
| Gross Profit | 9.34B | 11.93B | 18.38B | 30.78B | 27.68B | 14.63B |
| EBITDA | 4.57B | 4.15B | 12.54B | 4.70B | 12.24B | 4.07B |
| Net Income | -5.37B | -5.82B | 5.96B | -18.18B | 4.45B | -4.29B |
Balance Sheet | ||||||
| Total Assets | 27.53B | 26.80B | 42.13B | 95.70B | 116.07B | 93.45B |
| Cash, Cash Equivalents and Short-Term Investments | 5.00B | 4.96B | 7.10B | 3.34B | 4.68B | 5.81B |
| Total Debt | 2.04B | 1.65B | 2.35B | 21.18B | 21.75B | 20.31B |
| Total Liabilities | 7.88B | 7.27B | 10.94B | 43.21B | 51.35B | 48.64B |
| Stockholders Equity | 19.61B | 19.50B | 31.13B | 52.42B | 64.67B | 44.59B |
Cash Flow | ||||||
| Free Cash Flow | 1.67B | -546.00M | -252.00M | 529.00M | -1.61B | 220.70M |
| Operating Cash Flow | 2.40B | 2.46B | 3.49B | 7.89B | 5.38B | 4.28B |
| Investing Cash Flow | -2.76B | -3.04B | 14.02B | -9.95B | -15.49B | -37.89B |
| Financing Cash Flow | -1.46B | -1.51B | -12.65B | 832.00M | 8.50B | 25.02B |
Embracer Group AB Technical Analysis
Positive
74.32
Price Trends
66.88
Positive
65.11
Positive
59.54
Positive
Market Momentum
2.16
Negative
58.51
Neutral
43.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EMBRAC.B, the sentiment is Positive. The current price of 74.32 is above the 20-day moving average (MA) of 70.90, above the 50-day MA of 66.88, and above the 200-day MA of 59.54, indicating a bullish trend. The MACD of 2.16 indicates Negative momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:EMBRAC.B.
Embracer Group AB Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr15.36B | 120.00 | 3.38% | 7.84% | 7.73% | -81.02% | |
63 Neutral | kr16.46B | -2.93 | -21.89% | ― | -31.46% | -169.01% | |
63 Neutral | kr475.52M | 19.97 | 5.44% | 3.22% | -19.67% | -68.42% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | kr53.65M | -17.30 | -36.10% | ― | 0.55% | 39.82% | |
51 Neutral | kr210.90M | -21.14 | -3.33% | 13.12% | 4.39% | -6331.67% | |
47 Neutral | kr173.74M | -0.36 | -138.93% | ― | -27.96% | -152.47% |
* Communication Services Sector Average
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Embracer Group AB Corporate Events
Embracer Group Reports Steady Buy Orders in B Shares on Stockholm Exchange
Aug 18, 2026
Embracer Group AB reported a series of buy transactions in its B shares on the Stockholm exchange during Week 33, specifically on 10 August 2026. The trades, executed throughout the trading day at prices around SEK 67.5–68.5 per share, repre...
Embracer Delivers Strong Q1 Growth and Reaffirms Cash EBIT Outlook Ahead of Fellowship Spin-Off
Aug 13, 2026
Embracer Group reported its first-quarter 2026/27 results under a new two-segment structure, with overall net sales up 24% to SEK 3.94 billion and organic growth of 33%, driven by strong performance in the Embracer segment’s PC/console, mobi...
Embracer Executes Steady Buyback of Class B Shares on Nasdaq Stockholm
Aug 11, 2026
Embracer Group AB reported a series of share repurchases of its class B shares on the Nasdaq Stockholm during week 32, with numerous small-volume buy orders executed at prices generally between SEK 66.5 and SEK 67.5. The trades, all marked as buys...
Embracer Group schedules Q1 2026/27 report presentation for investors
Aug 6, 2026
Embracer Group has invited investors, analysts and media to a presentation of its first-quarter interim report for the 2026/27 financial year, scheduled for August 13, with the report to be published earlier the same morning. The event, led by CEO...
Embracer Group Intensifies B-Share Buybacks on Stockholm Exchange
Aug 4, 2026
Embracer Group AB reported a series of share repurchases in week 31, executing numerous buy orders in its B shares on the Stockholm exchange on July 27 at prices mainly between SEK 65 and SEK 68. The transactions, which cumulatively represent a me...
Embracer steps up capital return with fresh B-share buybacks
Jul 28, 2026
Embracer Group AB has repurchased 261,100 of its own B shares on Nasdaq Stockholm between 20 and 24 July 2026 as part of a previously announced SEK 750 million share buyback program. The purchases, executed by Nordea Bank on the company’s be...
Embracer Steps Up Share Buybacks to Streamline Capital Structure
Jul 21, 2026
Embracer Group AB has intensified its capital structure optimization efforts through an ongoing share buyback program on Nasdaq Stockholm. The company repurchased 259,200 B shares between 13 and 17 July 2026, as part of a previously announced SEK ...
Embracer Group Advances SEK 750m Share Buyback With New B-Share Repurchases
Jul 14, 2026
Embracer Group AB has repurchased 273,500 of its own B shares on Nasdaq Stockholm between 6 and 10 July 2026, as part of a previously announced SEK 750 million share buyback program running until March 2027. The transactions, executed by Nordea Ba...
Embracer Group reports series of share buy transactions on Nasdaq Stockholm
Jul 7, 2026
Embracer Group AB disclosed a series of market purchases of its class B shares on 29 June 2026, executed on Nasdaq Stockholm throughout the trading session. The transactions, all on the buy side, were carried out at prices mainly in the SEK 62R...
Embracer Group Backs Share Price With Steady Stock Purchases
Jun 30, 2026
Embracer Group AB executed a series of small, intraday purchases of its B shares on Nasdaq Stockholm on June 26, with trade sizes generally ranging from tens to a few hundred shares and prices fluctuating around SEK 59 to SEK 61. The pattern indic...
Embracer Group Reports Intensive Share Purchases Around SEK 62–63
Jun 23, 2026
Embracer Group AB disclosed a series of market transactions showing systematic purchases of its B shares on Nasdaq Stockholm during week 25, with numerous small to mid-sized orders executed at prices mainly in the SEK 62–63 range. The patter...
Embracer Advances SEK 750 Million Buyback to Optimize Capital Structure
Jun 16, 2026
Embracer Group AB has continued executing its previously announced SEK 750 million share buyback program, repurchasing 275,700 B shares between 8 and 12 June 2026 on Nasdaq Stockholm through Nordea Bank. Following these transactions, the company h...
Embracer Buys Back 253,700 B Shares in Ongoing SEK 750m Program
Jun 9, 2026
Embracer Group AB has repurchased 253,700 of its own B shares on Nasdaq Stockholm between 1 and 5 June 2026 as part of a previously announced SEK 750 million share buyback program running until March 2027. The transactions, executed by Nordea Bank...
Embracer Group Buys Back Additional B Shares to Optimize Capital Structure
Jun 2, 2026
Embracer Group AB has continued its share repurchase program, buying back 245,200 B shares on Nasdaq Stockholm between 25 and 29 May 2026 under a SEK 750 million mandate running until March 2027. The transactions, executed by Nordea Bank on the co...
Embracer Group Steps Up SEK 750m Buyback With New B-Share Purchases
May 26, 2026
Embracer Group AB has repurchased 151,300 of its own B shares on Nasdaq Stockholm between 20 and 22 May 2026 under a SEK 750 million share buyback program launched on 20 May. The transactions, executed by Nordea Bank on Embracer’s behalf at ...
Embracer to Spin Off Fellowship Entertainment in 2027 Restructuring
May 20, 2026
Embracer Group plans to split into two publicly listed companies by spinning off Fellowship Entertainment, an IP-led entertainment business built around game development, publishing and licensing, with a planned Nasdaq Stockholm listing in 2027. S...
Embracer Posts Heavy Loss but Boosts Cash Flow as It Refocuses on Core IPs and Cash EBIT
May 20, 2026
Embracer Group reported a sharp decline in net sales and profitability for the fourth quarter and full year 2025/26, with annual revenue down 25% to SEK 15.9 billion and EBIT plunging into a loss of SEK 7.1 billion. Despite weaker topline and a 68...
Embracer launches SEK 750 million share buyback to streamline capital structure
May 20, 2026
Embracer Group AB, the Karlstad-headquartered video games and media group listed on Nasdaq Stockholm, has launched a share buyback program of up to SEK 750 million targeting its class B shares. The move is aimed at optimizing the company’s c...
Embracer to Spin Off Fellowship Entertainment in 2027 to Unlock Value in Major Gaming IPs
May 20, 2026
Embracer Group plans to spin off its Fellowship Entertainment segment and list it on Nasdaq Stockholm in 2027, creating a standalone company with a unified strategy and business plan. The move is intended to sharpen management focus, unlock what t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.