Embracer Group has released its financial results for the fourth quarter ending March 2025, revealing a downturn across both its PC/console and mobile segments for the quarter and the fiscal year. The full-year accounts indicate a reduction in the total number of game development projects, decreasing from 141 to 108, alongside a significant cut in headcount from 9,692 to 7,180, with 5,378 of those being game developers.
The numbers
Q4 (3 months ended March 31, 2025)
- Net sales: SEK 5.4 billion (0.5 million, down 6% year-on-year)
- PC/Console games: SEK 3 billion (1.4 million, down 2% year-on-year)
- Mobile: SEK 943 million (.9 million, down 31% year-on-year)
- Entertainment & services: SEK 1.3 billion (4.9 million, up 9% year-on-year)
Full-year (12 months ended March 31, 2025)
- Net sales: SEK 22.3 billion (.32 billion, down 18% year-on-year)
- PC/Console games: SEK 1.5 billion (5.7 million, down 27% year-on-year)
- Mobile: SEK 5.3 billion (0 million, down 9% year-on-year)
- Entertainment & services: SEK 6.5 billion (4.6 million, down 7% year-on-year)
Despite these declines, Embracer attributes a “solid” quarter to the success of Kingdom Come Deliverance 2, which has sold three million copies and garnered a favorable response from both players and critics. The company anticipates that upcoming downloadable content and free updates will sustain player interest and engagement over the next year.
Embracer distinguishes between actual and organic growth, noting that while mobile game sales experienced a 31% decline from January to March 2025, organic growth surged by 30%. Similarly, PC/console game sales reflected an organic growth of 22%.
The group has made “significant progress” in its transformation process, having successfully divested Easybrain and Asmodee, with plans to spin off Coffee Stain Group by the end of the calendar year. CEO Lars Wingefors remarked, “In a solid ending to the year, net sales grew by 19% organically to SEK 5.4 billion, while Adjusted EBIT grew by 44% year-on-year pro forma to SEK 1.1 billion, with a free cash flow of SEK 1.0 billion in Q4.” He added that the continued performance of Kingdom Come: Deliverance II and the acceleration of organic growth within mobile games are promising indicators for the future.
Looking ahead
Looking forward, Embracer anticipates the release of 76 games throughout FY 2025/26, featuring a blend of new intellectual properties, sequels, and remasters. Notable titles include Metal Eden, Gothic 1 Remake, Reanimal, Fellowship, Wreckreation, the next SpongeBob SquarePants game, Norse: Oath of Blood, and Deep Rock Galactic: Rogue Core. The company has also highlighted two AAA titles: Killing Floor 3, scheduled for Q2, and Marvel 1943: Rise of the Hydra, expected to launch during the 25/26 fiscal year. Embracer anticipates that Marvel 1943: Rise of Hydra will generate substantial revenues, albeit with lower margins due to shared economics with various partners.
Additionally, a previously mentioned third AAA game has been postponed to 2026/27, as management believes it requires further refinement. Plans are in place for an additional nine AAA titles to be released in the financial years 2027/28 and 2028/29.
In a related development, THQ Nordic’s studio Campfire Cabal has resumed operations after being closed in 2023. The developer stated that it “never shut down” despite the restructuring efforts undertaken by Embracer Group.
