Key Notes
- Embracer’s July–September revenue rose 14% to SEK 4.13 billion, with mobile games and licensing contributing as the group returned to operating profit.
- Titan Quest II has sold well over 500,000 Early Access copies, while Metro 2039 has passed two million wishlists ahead of its February release.
- The company maintained its full-year Cash EBIT forecast and its plan to spin off Fellowship Entertainment in 2027, while reported headcount fell year over year.
Embracer Group returned to operating profit in its July–September quarter as mobile games and licensing helped lift revenue 14% to SEK 4.13 billion. Its next wave of PC and console releases is gathering momentum, too: Titan Quest II has sold well over 500,000 copies in Early Access, while Metro 2039 has passed two million wishlists.
The Swedish group’s November 11 results put operating profit at SEK 121 million, against a SEK 141 million loss a year earlier. For players, the accompanying release calendar offers a clearer view of where its best-known franchises are heading through the winter.
Titan Quest II and Metro Lead the Release Updates
Titan Quest II is scheduled for its full launch on January 19, 2027, following its PC Early Access debut in August 2025. Embracer says outstanding wishlists across platforms now exceed one million, with consoles accounting for most of the past month’s net increase.
Its interim report also puts Metro 2039’s release on February 4, 2027. The game’s collector’s edition sold out within a week, and Embracer says wishlist growth is ahead of Kingdom Come: Deliverance II at an equivalent point before launch.
Tomb Raider: Legacy of Atlantis follows on February 12. Embracer says preorders and wishlists are beating its internal targets, with the collector’s edition selling out immediately. Its main launch campaign with Amazon Games is due to begin in December.
Before those arrive, Warhammer 40,000: Dawn of War IV is scheduled for December 3 and RedOctane Games’ Stage Tour for December 10. Management says early Stage Tour game-and-hardware bundle orders are ahead of expectations. The rhythm game’s reliance on physical hardware and licensed music also means its revenue and margins will behave differently from a typical software release.
Those are different measures of demand. Titan Quest II’s figure counts purchases already made; wishlists for unreleased games indicate interest without committing players to buy.
Mobile Growth Helps Lift the Quarter
The group’s Embracer operating segment generated SEK 3.08 billion in quarterly revenue, up 21%. Within it, mobile revenue rose 42% to SEK 759 million. CEO Phil Rogers credited Sled Surfers’ continued performance and stronger traction for Glow Fashion Idol.
Entertainment & Services revenue increased 39% to SEK 1.66 billion, with software, hardware and retro products contributing. The segment’s PC and console business grew more modestly, rising 2% to SEK 644 million.
Fellowship Entertainment had a different mix. Its revenue slipped 3% to SEK 1.05 billion, but Cash EBIT rose 28% to SEK 124 million. Royalties from Wizards of the Coast’s Magic: The Gathering | The Hobbit helped offset lower publishing-and-development revenue. Kingdom Come: Deliverance, Remnant, Dead Island and Metro led the catalog performance.
Mobile expansion also includes acquisitions. We reported on DECA’s A Thinking Ape taking over Island Hoppers for approximately $4.5 million upfront, with up to $500,000 more tied to conditions. That deal closed in August; the buyer’s identity was announced in November.
A Profitable Quarter Ahead of the Fellowship Split
Group Cash EBIT reached SEK 203 million, compared with negative SEK 66 million a year earlier. This is Embracer’s alternative performance measure, which adjusts operating earnings and deducts investments and lease payments. It is separate from the SEK 121 million operating profit and the SEK 55 million in free cash flow reported for the quarter.
Embracer maintained its full-year forecast of at least SEK 1 billion in Cash EBIT. Rogers said preparations to spin off Fellowship Entertainment during calendar 2027 remain on track, alongside work to consolidate its publishing and marketing organization.
The improved results come from a smaller group of people. Reported headcount was 4,936 at September 30, down from 6,165 a year earlier; Embracer’s definition includes employees and contractors. Management said cost reductions and divestments also supported the earnings improvement.
