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Embracer Group Posts Strong Q1 as Metro 2039 and Tomb Raider Pipeline Take Shape

Embracer Group has published its interim report for the first quarter of the 2026/27 financial year, covering the period from April to June 2026.


Tomb Raider: Legacy of Atlantis, embracer group, Metro 2039.
Image: Tomb Raider: Legacy of Atlantis, Embracer group, Metro 2039.

The numbers

Here is a quick breakdown of the key figures for the quarter:

  • Net sales: SEK 3,943 million, up 24% (33% organic growth)

  • EBIT: SEK -79 million, an improvement from SEK -272 million a year earlier

  • Cash EBIT: SEK 47 million, up 147% from SEK -99 million

  • Adjusted EBIT: SEK 151 million, up 739% from SEK 18 million

  • Free cash flow after working capital: SEK 3 million, compared to SEK -383 million last year

  • Basic earnings per share: SEK 0.18, versus SEK -2.01 previously

  • Net cash position: SEK 3.5 billion as of June 30, 2026


This also marks the first quarter Embracer has reported under its new two-segment structure, dividing the business into Fellowship Entertainment and Embracer, in preparation for the planned spin-off of Fellowship Entertainment in 2027.


Embracer posted net sales of SEK 3,134 million, up 48%, while Fellowship Entertainment saw net sales fall 23% to SEK 810 million due to a quiet release slate in the quarter.


What launched in the quarter?

Q1 FY2026/27 was relatively light on major releases, but a few titles stood out:

  • Gothic 1 Remake, from THQ Nordic and Alkimia Interactive, released June 5 and reached 500,000 copies sold within its first week

  • Fatekeeper, an externally developed title, performed "above management expectations"

  • REANIMAL continued to show strong catalog momentum

  • Sled Surfers, CrazyLabs' mobile title, kept driving growth within the Mobile business area


Catalog titles spanned franchises like Kingdom Come: Deliverance, Metro, Tomb Raider, and Dead Island also delivered strong results, performing "above internal expectations" in a quiet quarter. In Q1 last year, Kingdom Come: Deliverance II made a big impact on catalog net sales, creating a tough year-over-year comparison.


What is coming next?

Embracer laid out a fairly packed pipeline across the rest of this financial year and into FY2027/28.


Titles expected during FY2026/27 include:

  • Warhammer 40,000: Dawn of War IV, now pushed to December 2026

  • Stage Tour, from RedOctane Games, expected during the 2026 holiday season

  • Metro 2039, from 4A Games, scheduled for February 2027

  • Tomb Raider: Legacy of Atlantis, scheduled for February 2027

  • Magic: The Gathering, The Hobbit, a trading card game from Wizards of the Coast, releasing August 14


Other games set to launch in Q2 include THQ Nordic's Way of the Hunter 2 for consoles, The Guild - Europa 1410 (Early Access), and Milestone's Hot Wheels: Infinite Rush, all scheduled for release in September 2026.


Looking further out to FY2027/28, Embracer confirmed plans for:

  • The next Kingdom Come game from Warhorse Studios

  • Darksiders 4 from Gunfire Games

  • Tomb Raider Catalyst, co-developed by Crystal Dynamics, Flying Wild Hog and Eidos Montreal


Metro 2039 has already reached 1 million wishlists faster than any game in the company's history.


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