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.
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.
Comments