Embracer’s latest financials show sales down again, but losses are much smaller

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Embracer Group posted another rough quarter for sales, but it also says profitability is trending in a better direction. In its financial results for the nine months ending December 31, 2025, the company reported net sales fell 26% year-over-year across both PC/console and mobile.

For the most recent quarter (the three months ending December 31, 2025), Embracer reported SEK 5.1 billion ($569.2 million) in net sales, down 26% year-over-year. PC/console brought in SEK 1.9 billion ($212 million), down 11%, while mobile dropped hard to SEK 566 million ($63.1 million), down 66%. Net profit for the quarter was SEK 477 million ($53.1 million), down from SEK 806 million ($89.9 million) a year earlier.

Over the full nine-month period, net sales were SEK 11.9 billion ($1.3 billion), also down 26%. PC/console sales were SEK 5 billion ($557 million), down 22%, and mobile was SEK 1.6 billion ($178 million), down 63%. The big difference is the bottom line: Embracer reported a net loss of SEK 20 million ($2.2 million), a lot smaller than the SEK 1.5 billion ($167.4 million) net loss it posted for the same span last year.

Embracer pointed to a few reasons for the sales drop, including foreign exchange headwinds, weaker organic growth, and the sale of Easybrain.

On the games side, Embracer said engagement and earnings from its “core IPs” beat expectations, name-checking Kingdom Come: Deliverance, Dead Island, and Tomb Raider. It also highlighted Kingdom Come: Deliverance 2, saying it’s now passed five million copies sold in its first year after its third expansion launched.

Looking ahead, CEO Phil Rogers said Embracer is focused on executing a pipeline of major releases over the next three years, including one “long-awaited” in-house title in the next financial year, plus a slate of mid-sized games.

Embracer has long been the game studio consolidator of choice, buying up countless gaming studios and pooling resources to gain effieincy. Unfortunately this plan didn’t work and the company has been selling assets over the last few years after its stock price tanked 90% since peaking in April 2021.