Asmodee Group (ASMDEE) Q3 24/25 earnings summary

Executive summary

• Achieved double-digit sales and profit growth in Q3, with net sales up 11.3% year-over-year to EUR 429 million, driven by strong organic growth, published games, and successful new releases.

• Adjusted EBITDA rose 12% to EUR 89.3 million, with a margin of 20.8%, supported by favorable product mix and higher volumes.

• Strong cash flow generation, with Q3 free cash flow at EUR 72 million and 81% conversion on adjusted EBITDA.

• Successful Nasdaq Stockholm listing, EUR 940 million senior secured notes issued, and EUR 400 million capital injection from Embracer Group post-quarter, with EUR 300 million used to repay debt.

• Hosted first Capital Markets Day and enhanced investor relations and brand presence.

Financial highlights

• Net sales for Q3 reached EUR 429 million, up 11.3% year-over-year; organic sales growth at 12.9%.

• Adjusted EBITDA was EUR 89.3 million (20.8% margin), and adjusted EBIT was EUR 82.9 million (19.3% margin).

• Free cash flow after tax and lease payments at EUR 72 million in Q3; conversion rate of 81%.

• Year-to-date sales at EUR 1.27 billion, up 1.7% (3.3% organic).

• Gross margin for Q3 at 47%, up from 45% last year, reflecting strong published game performance.

Outlook and guidance

• Full-year expectations remain for low single-digit net sales growth, with adjusted EBITDA and EBIT margins broadly in line with the previous year.

• Q4 expected to face tough comparables due to last year's strong product mix and margin expansion, as well as increased standalone company costs and normalized marketing spend.

• Management targets a sustainable adjusted EBITDA margin exceeding 18% in the medium term.

• Investment phase continues for Star Wars Unlimited, focusing on long-term growth.

• Strong product catalog and pipeline position the company for long-term profitable growth.