Fractal Gaming Group Interim Report January-June 2026

Second quarter 2026

• Net sales amounted to SEK 74.7 million (215.4), corresponding to a decline of –65.3%. The organic decline amounted to –64.3%.
• Product profit amounted to SEK 29.3 million (76.7), with a product margin of 39.2% (35.6).
• EBITDA amounted to SEK –23.4 million (19.8), corresponding to an EBITDA margin of –31.3% (9.2).
• Adjusted EBITDA amounted to SEK –20.3 million, corresponding to an adjusted EBITDA margin of –27.2%.
• EBIT amounted to SEK –31.2 million (13.0), corresponding to an EBIT margin of –41.8% (6.0).
• Adjusted EBIT amounted to SEK –28.1 million, corresponding to an adjusted EBIT margin of –37.7%.
• Operating cash flow amounted to SEK 3.8 million (5.6), and net cash amounted to SEK 18.0 million (65.7).
• Earnings per share amounted to SEK –0.8 (0.2).
• Items affecting comparability amounted to SEK 3.1 million and pertained to restructuring costs.

Jonas Holst, CEO of Fractal comments:
“As expected, the weak market conditions we described after the first quarter have persisted. Despite strong interest in gaming, sharp rises in DRAM prices, driven by investments in AI and data centers, have dampened demand from end consumers.

Our reported end-customer sales exceeded sell-in by more than 60%, as our partners reduced their purchases to adjust their inventory levels.

Net sales decreased by 65.3% to SEK 74.7 million, while organic sales decreased by 64.3%. The comparative figures were very strong, as the second quarter of 2025 was Fractal’s second-strongest quarter ever.

Sales from retailers to end customers decreased by 28%, and overall, we gained market share in our key markets. Since February, our reported end-customer sales have stabilized at just over USD 4 million per month, with some improvement in June and July, partly due to Prime Day. This indicates that the decline in demand has slowed, although the market remains subdued and purchasing behavior is increasingly promotion-driven.

The cost-cutting program that was launched in the second quarter has begun to yield results, and sharp reductions in purchases have enhanced our cash flow. Meanwhile, we are continuing to implement further structural changes to reduce our cost base and increase operational efficiency. Altogether, our organization, including consultants, will shrink by approximately 20% in 2026. We estimate additional restructuring costs of approximately SEK 6–9 million in the second half of the year.

Overall, these measures are expected to gradually enhance profitability in the second half of 2026. With full effect beginning in the new year, our fixed operating cost base in 2027 is expected to be approximately 20% lower than in 2025.
 
The DRAM situation is expected to continue impacting the market in the near future. We therefore expect that underlying demand will remain subdued but will gradually improve. As inventory adjustments taper off, net sales are expected to develop more in line with underlying demand than in the second quarter.
 
Adapting our operations to current market conditions puts us in a good position to strengthen profitability, with significant further potential as the market recovers over time.”

Telephone and web conference
A telephone and web conference will be held for investors, analysts and media on August 19, 10.00 (CEST). CEO, Jonas Holst and CFO, Karin Ingemarson will present and comment on the report and the presentation will be followed by a question and answer session.

Link to web conference:
https://fractal-gaming-group.events.inderes.com/q2-report-2026

To sign up for the telephone conference:
https://events.inderes.com/fractal-gaming-group/q2-report-2026/dial-in