Stillfront Group (SF) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 was SEK 1,323 million, reflecting a -1.3% organic decline year-on-year, while key franchises delivered 10% organic growth and profitability improved as user acquisition costs normalized.

• Adjusted EBITDA/EBITDAC rose to SEK 387 million with a 29% margin, up from 23% in Q1 and 26% year-over-year, driven by lower user acquisition costs and a higher share of direct-to-consumer bookings.

• Free cash flow increased to SEK 519 million, supported by the Gameberry settlement, with LTM free cash flow at SEK 1,037 million.

• Strategic divestments (OFM Studios, Narrative) and the Gameberry settlement simplified the group and focused resources on core franchises.

• CEO succession process and ongoing strategic review were announced, with no change to strategic direction.

Financial highlights

• Gross margin improved to 84% year-on-year, driven by a higher share of direct-to-consumer bookings (46% of total).

• User acquisition costs were SEK 340 million (26% of net revenue), down from SEK 436 million (30%) last year, reflecting stricter investment targets.

• Adjusted EBITDA/EBITDAC margin increased to 29%, up 3 percentage points year-on-year.

• Earnings per share (undiluted and diluted) were SEK 0.44, up from SEK -0.15.

• Net debt including all earnout liabilities decreased to SEK 4,572 million from SEK 5,310 million.

Outlook and guidance

• Continued focus on expanding key franchises and maintaining profitability, with strategic review and CEO succession process ongoing.

• Near-term capital allocation priority is deleveraging, with significant earnout obligations expected to be settled by 2027.

• User acquisition environment remains dynamic and will be approached with strict ROAS criteria.