Coffee Stain (COFFEE) investor relations material

Executive summary

• Net sales rose 37% year-over-year to SEK 253 million, driven by Satisfactory and the launch of Deep Rock Galactic: Rogue Core, though Rogue Core saw a rapid engagement decline after launch.

• Cash EBIT reached SEK 95 million with a 38% margin, and free cash flow was SEK 100 million; cash and cash equivalents stood at SEK 722 million at quarter-end.

• Satisfactory 1.2 update and console launches contributed to baseline growth and cash generation.

• Fellowship's Season 3 underperformed, leading to a reduction in development headcount and costs from Q3 onward.

• Adjusted earnings per share increased to SEK 0.25 from SEK 0.03.

Financial highlights

• Last twelve months net sales reached SEK 1,029 million, with organic growth of 10% and LTM Cash EBIT of SEK 391 million at a 38% margin.

• Free cash flow for Q1 was SEK 100 million, with a cash conversion rate of 105%.

• Net profit for the quarter was SEK 24 million, reversing a prior year loss of SEK -18 million.

• Operational cost base decreased by SEK 21 million versus Q4, mainly due to lower third-party support and royalty expenses.

• Cash at quarter end stood at SEK 722 million.

Outlook and guidance

• Valheim 1.0 and new console releases are scheduled for September, with cautious expectations due to the game's long early access period.

• Teardown multiplayer for consoles and new titles like Lightyear Frontier and Wielders of the Essence are in the pipeline, though no specific guidance provided.

• Further investment in Rogue Core will depend on improved player engagement and ongoing KPI monitoring.

• Development priorities are shifting in response to mixed engagement in recent releases, with a focus on disciplined investment and rapid response to market feedback.

• Revised development setup for Fellowship will materially lower ongoing investments from Q3 onward.