Fractal Gaming Group (FRACTL) Q4 2025 earnings summary

Executive summary

• Achieved record net sales in 2025, with organic growth of 25% in USD and 16% in SEK, despite external headwinds such as tariffs and currency volatility.

• Q4 organic growth in USD was 4.5%, but reported SEK sales declined 9% year-on-year due to currency effects and tough comparables.

• Expansion into new product categories, including headsets and chairs, drove growth and now represent up to 17% of Q4 net sales.

• Strong sales-out and successful campaigns, especially during Black Friday, led to the highest quarterly sales-out ever reported.

• Profitability was pressured by tariffs, currency effects, and higher inventory costs, but strategic initiatives in pricing and cost optimization were implemented.

Financial highlights

• Q4 net sales: SEK 186.7 million ($19.8 million USD), down 9% YoY in SEK, with organic growth in USD.

• Q4 EBITDA: SEK 7.0 million (3.8% margin, down from 14.2% YoY); underlying margin above 10% excluding tariffs and FX.

• Full-year 2025 net sales: SEK 809.5 million, up 16% in SEK and 25% in USD.

• Full-year EBITDA: SEK 77.8 million (9.6% margin, down from 12%); underlying margin would have been ~14% excluding external factors.

• Operating cash flow in Q4: -SEK 34.2 million, mainly due to inventory payments.

Outlook and guidance

• Growth in 2026 expected to be weighted toward the second half due to strong comparables in H1 and potential impact from the global memory market.

• Profitability is expected to improve in 2026 as tariff and inventory cost impacts diminish and operational improvements take hold.

• Tariff-related uncertainty has stabilized, but memory market and component supply developments are being closely monitored.

• Management prioritizes margin improvement and continued investment in product portfolio expansion.

• Financial position and flexibility remain strong to support future growth initiatives.