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Embracer Group Reports Declining Sales in FY 2024/25


Embracer Group

Embracer Group has released its financial results for the fourth quarter and full fiscal year ending March 31, 2025, showing overall declines in revenue but strong organic growth and optimism for the year ahead.


How Did Embracer Perform in Q4 and FY 2024/25?

Despite tough macroeconomic conditions, Q4 2025 net sales reached SEK 5.4 billion ($560.5 million)—a 6% drop year-over-year. However, organic growth for the quarter rose by 19%, thanks largely to the strong performance of Kingdom Come: Deliverance II, which surpassed 3 million copies sold post-quarter.


Q4 Breakdown by Segment:

  • PC/Console: SEK 3.07 billion (down 2%, organic growth +22%)

  • Mobile Games: SEK 943 million (down 31%, organic growth +30%)

  • Entertainment & Services: SEK 1.37 billion (up 9%)


Full-Year (FY 2024/25) Highlights:

  • Total net sales: SEK 22.37 billion ($2.32 billion), down 18% YoY

  • Adjusted EBIT: SEK 3.34 billion (down 33%)

  • Free cash flow: SEK 1.35 billion, compared to a negative flow in the prior year

  • PC/Console: SEK 10.45 billion (down 27%)

  • Mobile: SEK 5.36 billion (down 9%)

  • Entertainment & Services: SEK 6.56 billion (down 7%)


What's Driving Growth at Embracer?

CEO Lars Wingefors pointed to Kingdom Come: Deliverance II as a standout success, calling Q4 a "solid ending to the year." The company also saw significant organic growth in mobile (+30%), suggesting recent mobile launches and strategic user acquisition investments are paying off.


Wingefors added that Embracer is preparing to spin off Coffee Stain Group by the end of 2025, listing it on Nasdaq First North.


The parent company will rebrand as Fellowship Entertainment, focusing on high-quality game development and transmedia IPs.


What’s the Game Release Outlook for FY 2025/26?

The company expects to launch 76 games in FY 2025/26, featuring a mix of new IPs, remasters, and sequels. Notable titles include:

  • Gothic 1 Remake

  • Metal Eden

  • Fellowship

  • Deep Rock Galactic: Rogue Core

  • Reanimal

  • Wreckreation

  • A new SpongeBob SquarePants game

  • Norse: Oath of Blood


Key AAA Titles:

  • Killing Floor 3 – slated for Q2 release (July 24, 2025)

  • Marvel 1943: Rise of Hydra – releasing late FY 25/26; expected to bring strong revenue, but with lower margins due to shared publishing economics

  • A third unannounced AAA title has been pushed to FY 2026/27

Looking further ahead, Embracer has nine more AAA games planned through FY 2028/29.


What’s Changing Internally?

The company has undergone major restructuring:

  • Headcount reduced from 9,692 to 7,180, including 5,378 developers

  • Total active game development projects reduced from 141 to 108

  • Divestments of Easybrain and Asmodee completed

  • Upcoming dissolution of Amplifier HQ and consolidation of studios like Tarsier into other operating groups


What’s Next for Embracer?

Despite the downturn in full-year revenues, Embracer is positioning itself for a stronger future through:

  • A sharper AAA focus

  • Cost-cutting measures

  • Transmedia expansion


“Backed by a strong financial position, we remain focused on enhancing efficiency and long-term resilience ahead of the Coffee Stain Group spin-off,” said Wingefors.

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