Fractal Gaming Group (FRACTL) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 declined by 65.3% year-over-year to SEK 74.7 million, mainly due to weak market conditions and significant inventory adjustments, especially in the case category.

• Product margin improved to 39.2% from 35.6% year-over-year, driven by currency, lower freight, 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, and net cash at quarter end was SEK 18 million.

• Sales out to end consumers fell by 28%, but market share increased across key markets.

Financial highlights

• Net sales: SEK 74.7 million in Q2, down from SEK 215.4 million year-over-year; H1 2026 net sales totaled SEK 213.1 million, down 51.7%.

• Product profit for Q2 was SEK 29.3 million, with a margin of 39.2%.

• EBITDA margin dropped to -31.3% from 9.2% year-over-year; adjusted EBITDA margin was -27.2%.

• EBIT was SEK -31.2 million, with an EBIT margin of -41.8%.

• Cash flow from operating activities improved to SEK 15.9 million from SEK 3.4 million year-over-year.

Outlook and guidance

• Profitability expected to improve in H2 2026 as cost reductions and restructuring take full effect, with additional SEK 6-9 million in restructuring costs anticipated.

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

• Repayment of approximately USD 2.5 million in IEEPA tariffs is expected in H2 2026.

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

• Product margin expected to remain around 40% over time.