Coffee Stain (COFFEE) investor relations material

Executive summary

• Net sales for Q3 were SEK 293 million, down 25% year-over-year, with organic growth at constant currency down 14%, impacted by weaker USD and lower launch uplift.

• Cash EBIT for the quarter was SEK 146 million, with a strong margin of 50%, reflecting operational leverage.

• The company completed its spin-off from Embracer and public listing, marking a significant milestone with no change in operating focus.

• Net profit for the quarter was SEK 46 million, compared to SEK 142 million in the same period last year.

• The quarter benefited from successful launches, notably Satisfactory Console and Goat Simulator 3 DLC, but was negatively affected by currency movements.

Financial highlights

• Last twelve months (LTM) net sales reached SEK 917 million, down 24% year-over-year, with 90% from core IPs.

• LTM Cash EBIT was SEK 330 million, with a margin of 36%.

• Cash position at quarter-end was SEK 540 million, with a pro forma net cash position around SEK 500 million.

• LTM cash EBIT to free cash flow conversion was 99%, though not fully normalized due to historical tax treatment.

• Negative working capital movement this quarter was due to strong December sales and royalty payments, expected to reverse in coming quarters.

Outlook and guidance

• Several new releases are planned, including Deep Rock Galactic: Season 6 and a major update for Fellowship in February, with additional titles announced but not yet dated.

• The company maintains an agile approach to announcements and continues to invest in both core and new IPs, focusing on long-term value and cautious monetization strategies.