Stillfront Group (SF) investor relations material

Executive summary

• Net revenue reached SEK 1,333 million in Q1 2026, reflecting flat organic growth, with 12% organic growth in key franchises offset by declines in other games.

• Big Farm franchise led with 88% organic growth, driven by the global launch of Big Farm: Homestead and continued momentum in Sunshine Island.

• User acquisition spend increased to SEK 447 million (34% of revenue), supporting franchise scaling but impacting profitability.

• Strategic review and disciplined portfolio management continue, with a newly composed board and recent AGM.

• Gross margin improved to 84%, supported by growth in direct-to-consumer channels.

Financial highlights

• Net revenues for Q1 2026 were SEK 1,333 million, down 14% year-on-year due to FX headwinds and divestment of the narrative portfolio.

• Adjusted EBITDA/EBITDAC was SEK 311 million, with a margin of 23%, reflecting higher UA investments and FX impacts.

• Free cash flow for the quarter was SEK 44 million, impacted by UA investments, FX, and timing effects; LTM free cash flow was SEK 772 million.

• Net debt including all earnout liabilities was SEK 5,193 million, a decrease year-on-year.

• Earnings per share rose to SEK 0.24 from SEK 0.05 year-over-year.

Outlook and guidance

• No specific cash flow or EBITDAC guidance provided; LTM free cash flow considered a more relevant benchmark.

• UA spend expected to decrease seasonally in summer; Big Farm: Homestead growth not expected to continue at the same pace.

• Focus remains on scaling key franchises and disciplined UA investments.

• Strategic review ongoing, with emphasis on operational improvements and player engagement.