Envar Holding (ENVAR) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 reached SEK 25,760 thousand, up 13.60% year-over-year, driven by strong demand for illustration and trailer work from major clients and a shift toward outsourcing in the gaming industry.

• Operating profit (EBIT) was SEK 3,344 thousand, down from SEK 4,883 thousand in Q1 2025, mainly due to SEK 1,114 thousand in non-capitalizable marketing expenses for the upcoming Witchspire game launch.

• The company maintained a high level of participation in international gaming events to strengthen its brand and generate new business.

Financial highlights

• EBITDA for Q1 2026 was SEK 3,535 thousand (margin 13.72%), compared to SEK 5,061 thousand (margin 22.32%) in Q1 2025.

• EBIT margin was 12.98%, down from 21.53% year-over-year.

• Earnings per share, basic, were SEK 0.23, compared to SEK 0.26 in Q1 2025.

• Cash and cash equivalents stood at SEK 37,238 thousand, down from SEK 53,285 thousand a year earlier.

• Cash flow from operating activities was SEK -4,258 thousand, similar to Q1 2025.

Outlook and guidance

• Witchspire, the company’s first in-house developed game, is scheduled for launch on 10 June 2026, with significant marketing efforts underway.

• The company aims to broaden its game development pipeline through the new Envar Blue team, targeting more frequent indie game launches every 12–15 months.