Stillfront Group (SF) Q3 2025 earnings summary

Executive summary

• Europe returned to organic growth in Q3 2025, establishing a new baseline, while MENA & APAC delivered strong double-digit growth and North America saw a 32.9% revenue decline but improved profitability through cost-cutting.

• Group net revenue for Q3 2025 was SEK 1,373 million, an organic decline of 7.8% year-over-year, mainly due to North America.

• Adjusted EBITDAC rose 13% to SEK 436 million, with margin up 8 percentage points to 32%, reflecting cost savings and operational efficiencies.

• Gross margin improved to 83%, driven by increased direct-to-consumer revenue share.

• Strategic focus remains on key franchises, new game launches, maintaining strong margins and cash flow, and executing a strategic review.

Financial highlights

• Net revenue: SEK 1,373 million (down 7.8% organically year-over-year).

• Adjusted EBITDAC: SEK 436 million (up 13% year-over-year); margin: 32% (up 8 percentage points).

• Gross margin: 83% (up from 80% last year), driven by higher DTC share.

• Free cash flow for the last twelve months was SEK 974 million; Q3 2025 free cash flow at SEK 183–254 million.

• Net result: SEK 55 million (up from SEK 18 million last year); earnings per share: SEK 0.11.

Outlook and guidance

• Europe expected to see slightly weaker organic growth in Q4, with most new game revenue impact in late Q4 and 2026.

• North America likely to continue revenue decline in Q4 but remain EBITDA positive, focusing on profitability.

• MENA & APAC expected to maintain steady growth, led by key franchises.

• Continued focus on cost discipline, investment in key franchises, and potential for further game closures or divestments.

• Overall organic net revenue growth in Q4 expected to temporarily return to H1 2025 levels due to North America.