Enad Global 7 (EG7) Q3 2025 earnings summary

Executive summary

• Q3 net revenue was SEK 355 million, down 24% year-over-year (16% FX neutral), with adjusted EBITDA at SEK 63 million and an 18% margin; subdued quarter with mixed segment results and strong Palia engagement.

• Currency volatility and a smaller release pipeline significantly impacted reported results, exaggerating revenue declines.

• Cold Iron's major title was delayed to Q3 2026, requiring additional investment and impacting 2025 results but expected to boost 2026.

• The company is maintaining a cautious approach, focusing on capital preservation, risk aversion, and selective capital deployment.

• Palia showed strong growth in engagement and monetization, with MAU up 77% and ARPU up 141% since console release.

Financial highlights

• Net revenue declined 24% year-over-year (16% FX neutral) to SEK 355 million; adjusted EBITDA was SEK 63 million (18% margin).

• Operational cash flow was SEK 51 million, negatively impacted by a non-recurring SEK 8 million payment.

• Net cash position at quarter-end was SEK 47.9 million, with a cash balance of SEK 395.9 million; SEK 100 million revolving credit facility signed and unutilized.

• Adjusted EBIT was SEK -14 million; profit before tax was SEK -29.5 million.

• Net profit for the quarter was SEK 19.6 million, with adjusted EPS at SEK 0.30.

Outlook and guidance

• Palia expected to continue strong growth with new content and monetization initiatives.

• Cold Iron's delayed title now targeted for Q3 2026, with additional funding of up to $7.7 million planned and expectations for a significant boost in 2026.

• The company remains cautious and highly selective in M&A and capital allocation, awaiting improved market trends.

• Management is confident in the strategy, focusing on prudent portfolio management and new project investments.