Embracer Group AB EBCRY

Communication ServicesSoftware & IT ServicesSweden

Last close 9.66 USD on Nov 1, 2026, +187.3% year to date

Quant rating

Quant rating A Rank 14 of 152 in Communication Services

Growth B 54 of 152
Valuation C 77 of 152
Quality B 58 of 152
Revisions B 27 of 152
Momentum A 3 of 152

Wall Street consensus Buy (2.30)Average target 8.89 USD −8.0%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 2.0B
Enterprise value: 1.7B
52-week range: 3.88 – 9.96
3-year range: 3.88 – 11.65
Dividend yield: –
Beta (5 years): –
Shares outstanding: 211M
Next earnings: Nov 13, 2026

About the company

Embracer Group AB, formerly THQ Nordic AB is a Sweden-based company engaged in the computer games development. The Company focuses on acquiring, developing and publishing personal computer (PC) and console games for Xbox and PlayStation platforms. The Company's game portfolio consists of owned franchises intellectual property (IP) and published titles, including Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory and Wreckfest, among others. It offers games through various distribution channels, including digital platforms, such as Steam, PlayStation Store and Xbox Live, as well as gaming conventions, and global retailers, such as Walmart, GameStop and Amazon. The Company has around 18 internal game development studios and operates in more than 40 countries.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	1,682	2,124	2,573	3,630	1,817	–
Revenue growth	−20.8%	−17.5%	−29.1%	99.7%	75.8%	10.2%
EPS (basic, normalized)	0.04	0.60	2.04	2.27	−2.39	–
EPS growth	−93.1%	−70.5%	−10.2%	–	–	–
Gross margin	75.0%	81.2%	91.6%	73.5%	85.9%	81.4%
Net margin	−43.3%	11.0%	−48.7%	11.8%	5.7%	−12.7%
ROE	−27.2%	5.6%	−22.8%	8.4%	2.8%	−6.6%

Balance sheet, last quarter
Cash & short-term investments (mil)	515
Current ratio	1.67x
Long-term debt (mil)	110
Net debt (mil)	−301
Total equity (mil)	2,022
Net debt / equity	−0.15x
Net debt / EBITDA	−0.75x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	1,682	−20.8%	1.0x	403	−37.5%	4.3x	0.04	−93.1%	231.2x
2027	1,935	+15.0%	0.9x	501	+24.5%	3.5x	0.75	+1,702.4%	12.8x
2028	1,809	−6.5%	1.0x	510	+1.7%	3.4x	0.74	−1.3%	13.0x
2029	1,858	+2.7%	0.9x	531	+4.0%	3.3x	0.79	+6.9%	12.2x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	1,935	+1.0%	+2.4%	−2.1%	0.75	+4.7%	−0.8%	−0.9%
2028	1,809	−0.3%	−1.5%	−4.5%	0.74	+1.8%	+1.1%	−1.9%
2029	1,858	−2.4%	−1.4%	−2.0%	0.79	+2.3%	+1.5%	+2.2%

Earnings surprises EPS beat in 2 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	8,875	7,933	8,552	7,462	5,386	3,355	3,850	5,176	3,931	3,943
Sales mean (mil)	9,679	8,269	9,150	10,814	6,211	4,542	4,602	5,724	4,157	3,162
Surprise	−8.3%	−4.1%	−6.5%	−31.0%	−13.3%	−26.1%	−16.3%	−9.6%	−5.4%	+24.7%
EPS reported	9.00	0.53	1.02	5.81	−0.19	−0.69	−0.67	1.76	0.51	1.03
EPS mean	2.38	1.02	3.79	4.50	4.06	1.31	1.08	1.32	0.56	0.44
Surprise	+278.8%	−47.6%	−73.1%	+29.2%	−104.7%	−152.7%	−161.9%	+33.6%	−8.1%	+132.3%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
EBCRY Embracer Group AB	2.0B	−0.75x	−43.3%	1.11x	12.8x	13.0x	3.5x	3.4x
SOUN SoundHound AI, Inc.	2.1B	3.47x	−8.3%	3.75x	−22.5x	−29.4x	−26.0x	−27.7x
ATEAY Atea ASA	2.0B	1.31x	2.3%	4.54x	8.6x	8.0x	9.2x	8.5x
SDGR Schrodinger Inc	2.0B	2.57x	−40.4%	6.17x	−16.9x	−20.9x	−11.4x	−17.3x
KARO Karooooo Ltd	2.0B	0.37x	18.1%	11.03x	27.8x	23.5x	12.6x	11.0x
GLOB GLOBANT S.A.	2.0B	–	4.2%	0.95x	7.9x	7.6x	5.3x	5.0x
Mean		1.39x	−11.2%	4.59x	2.9x	0.3x	−1.1x	−2.9x
Median		1.31x	−3.0%	4.14x	8.3x	7.8x	4.4x	4.2x

Technical analysis

1M+32.2%
3M+49.6%
1Y+70.3%
3Y+102.1%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Embracer Group AB, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	1,682	2,124	2,573	3,630	1,817	1,034
Cost of revenue	421	400	217	962	256	267
Gross profit	1,261	1,724	2,356	2,668	1,561	767
Selling, general & administrative expenses	532	641	1,077	1,200	916	211
Research & development	–	–	–	–	–	–
Depreciation/amortization	373	434	677	603	295	402
Interest expense (income), operating	−2.3	−0.2	−1.1	−17.1	−43.1	−23.7
Unusual expense (income)	772	−167	1,429	51.8	41.0	–
Other operating expenses	332	485	527	812	472	123
Operating income	−746	331	−1,352	18.7	−120	54.6
Net interest income (expense)	16.5	−86.7	66.4	337	297	18.1
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0.2	0.7	0.4	128	0	5.2
Net income before taxes	−729	245	−1,285	483	177	77.9
Provision for taxes	−0.8	11.5	−33.0	53.3	73.7	45.0
Minority interest	−0.2	0.1	0.1	−0.8	1.0	0
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	−729	234	−1,252	429	104	32.9
Extraordinary items	113	360	−454	–	–	–
Net income	−615	594	−1,707	429	104	32.9
EBIT, normalized	21.6	164	255	80.2	−166	31.0
EBITDA, normalized	394	598	931	683	129	433
Basic EPS, normalized	0.04	0.60	2.04	2.27	−2.39	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Embracer Group AB, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	524	707	314	449	619	1,638
Receivables	327	362	823	725	635	212
Total inventory	82.8	70.5	302	393	295	27.8
Prepaid expenses	27.5	47.9	42.9	68.4	40.1	18.5
Other current assets	−0.1	0.1	0	1.7	0	0
Total current assets	961	1,188	1,481	1,638	1,589	1,896
Property, plant & equipment	96.2	117	209	248	190	27.2
Goodwill	423	1,233	2,930	4,677	4,539	1,238
Intangibles	1,126	1,426	3,477	4,393	3,340	640
Long-term investments	12.3	30.3	29.7	30.0	20.1	29.4
Note receivable	39.5	38.8	41.2	30.0	26.3	5.2
Other long-term assets	176	166	816	171	136	30.8
Total assets	2,834	4,199	8,985	11,186	9,841	3,867
Liabilities
Accounts payable	118	120	206	271	384	92.7
Payable/accrued	–	–	–	–	–	–
Accrued expenses	185	165	279	301	150	127
Short-term debt	0	0	3.3	1.6	15.9	3.1
Current portion of long-term debt	101	79.1	876	109	778	138
Other current liabilities	176	269	393	682	443	57.2
Total current liabilities	580	634	1,756	1,364	1,771	418
Long-term debt	72.7	155	1,110	1,986	1,471	28.2
Minority interest	3.8	6.4	6.0	5.1	24.3	1.5
Other liabilities	116	301	1,191	1,599	2,108	308
Total liabilities	772	1,097	4,063	4,954	5,374	756
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	0.2	0.2	0.2	0.2	0.2	0.1
Additional paid-in capital	6,545	6,185	5,721	5,386	4,518	3,066
Retained earnings (accumulated deficit)	−4,484	−3,083	−799	846	−52.0	44.3
Treasury stock	–	–	–	–	–	–
Other equity	0	0	−0.1	0	0	0
Total equity	2,061	3,103	4,922	6,232	4,466	3,111
Total liabilities & shareholders' equity	2,834	4,199	8,985	11,186	9,841	3,867

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Embracer Group AB, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	−729	245	−2,534	483	177	78.0
Depreciation, depletion & amortization	1,156	869	1,296	625	297	383
Deferred taxes	–	–	–	–	–	–
Non-cash items	−172	−795	1,784	−381	77.1	−29.9
Changes in working capital	1.9	−176	−125	−208	−118	15.2
Cash from operations	257	144	421	519	433	447
Investing activities
Capital expenditures	−318	−353	−664	−674	−432	−253
Other investing cash flows	−3.0	1,772	−242	−819	−3,543	−526
Cash from investing	−321	1,420	−906	−1,493	−3,975	−780
Financing activities
Financing cash flow items	−28.8	575	148	−0.9	−13.8	−33.6
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−130	−1,775	109	820	2,662	1,721
Cash from financing	−159	−1,200	257	819	2,648	1,687
Foreign exchange effects	−2.3	−9.7	7.5	44.0	10.5	−3.4
Net change in cash	−226	354	−219	−111	−883	1,351
Free cash flow	−61.8	−209	−242	−155	1.0	193

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.