adminEmbracer sales declined 26% year on year in the nine months ended December 31, 2025, reaching SEK 11.9 billion ($1.3 billion). The company also reported lower revenue in its PC and console and mobile divisions. Despite the decline, CEO Phil Rogers described the third quarter as a “clear improvement” in profitability compared with the first two quarters, pointing to stronger results from several established game franchises.
Image credit: Warhorse Studios
Embracer sales and financial results
For the three months ended December 31, 2025, net sales totalled SEK 5.1 billion ($569.2 million), down 26% from the same quarter a year earlier. The divisional results were:
- PC and console games: SEK 1.9 billion ($212 million), down 11% year on year.
- Mobile games: SEK 566 million ($63.1 million), down 66% year on year.
Quarterly net profit was SEK 477 million ($53.1 million), compared with SEK 806 million ($89.9 million) in the corresponding period last year.
Across the full nine-month period, PC and console sales were SEK 5 billion ($557 million), down 22%. Mobile sales reached SEK 1.6 billion ($178 million), a 63% decrease. Embracer reported a net loss of SEK 20 million ($2.2 million), compared with a loss of SEK 1.5 billion ($167.4 million) a year earlier. When comparing the figures, note that the quarterly and nine-month totals cover different reporting periods.
What influenced the quarter’s performance?
Embracer attributed the third-quarter sales decline to lower foreign exchange rates, negative organic growth and the divestment of Easybrain from its mobile segment. The company said the profitability improvement was supported by established intellectual property, including Kingdom Come: Deliverance, Dead Island and Tomb Raider, which exceeded expectations for engagement and earnings.
Kingdom Come: Deliverance 2, developed by Warhorse Studios, recorded strong sales following the launch of its third expansion. The game surpassed five million copies sold during its first year of release.
New releases and back catalogue
New PC and console releases generated 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.
Back catalogue revenue, including platform deals, was SEK 1.3 billion ($145.4 million), down 10%. Embracer named Kingdom Come: Deliverance 2, Killing Floor 3, MX vs ATV: Legends and Shadow of the Tomb Raider among its leading revenue drivers.
Mobile games and upcoming releases
The mobile division’s decline reflected lower user acquisition costs and the Easybrain divestment. DECA Games delivered what Embracer described as a steady performance, while CrazyLabs recorded negative growth and lower user acquisition, despite scaling the new title Sled Surfers in December. The quarter’s leading mobile games were Glow: Fashion Idol, Party in My Dorm, Flop House, Coffee Mania and Sled Surfers.
Rogers said the company’s priority is to deliver its planned pipeline of major releases over the next three years. For the next financial year, Embracer expects one long-awaited major title developed and published in-house, alongside several mid-sized releases. The CEO said disciplined execution will be important to turning the pipeline into improved profitability and cash generation in FY 2026/27.
What the results mean for Embracer sales
The nine-month figures show declines across both major gaming divisions, while the latest quarter’s profitability improved compared with the first half of the year. Future Embracer sales will depend in part on the company’s release schedule and performance from its established franchises, but the reported results do not guarantee that upcoming titles will reverse the decline.
