Fractal Gaming Group (FRACTL) Q2 2026 earnings summary

Executive summary

• Net sales declined 65% year-over-year to SEK 74.7 million, mainly due to weak market conditions and significant channel inventory adjustments, especially in the case category.

• Product margin improved to 39.2% from 35.6% year-over-year, driven by currency effects, lower freight and tariffs, and a better product mix, partially offset by higher discounts.

• EBITDA was SEK -23.4 million (margin -31.3%), with adjusted EBITDA at SEK -20.3 million, reflecting SEK 3.1 million in restructuring costs.

• Operating cash flow was SEK 3.8 million, supported by working capital normalization; net cash at quarter-end was SEK 18.0 million.

• Cost and structural measures are underway, targeting a 20% lower fixed operating cost base by 2027 compared to 2025.

Financial highlights

• Net sales: SEK 74.7 million in Q2 2026 (down 65% YoY, down 64% organically).

• Product profit for Q2: SEK 29.3 million, margin 39.2%.

• EBITDA margin: -31.3% (down from 9.2% YoY); adjusted EBITDA margin: -27.2%.

• EBIT: SEK -31.2 million, margin -41.8%.

• Net cash at quarter-end: SEK 18.0 million.

Outlook and guidance

• Profitability expected to improve in H2 2026 as cost reductions and restructuring take full effect.

• Fixed operating cost base in 2027 targeted to be ~20% below 2025 levels.

• Additional restructuring costs of SEK 6-9 million anticipated in H2 2026.

• Repayment of approximately USD 2.5 million in IEEPA tariffs expected in H2 2026, positively impacting earnings and cash flow.

• Market expected to remain soft near-term, but gradual demand recovery anticipated as inventory adjustments taper off.