Fractal Gaming Group (FRACTL) Q4 2025 earnings summary

Executive summary

• Achieved record net sales for full year 2025, with 25% organic growth in USD and 16% in SEK, despite tariffs, currency volatility, and higher inventory costs.

• Q4 organic growth in USD was 4.5%, but reported SEK sales declined 9% year-on-year due to currency effects and tough comparables.

• Expansion into new product categories (headsets, chairs) drove growth, now representing up to 17% of Q4 net sales.

• Strong sales-out to end consumers, especially during Black Friday, supported by successful campaigns and new launches.

• Profitability was pressured by tariffs, currency effects, and inventory costs, but strategic initiatives in pricing and cost optimization were implemented.

Financial highlights

• Q4 net sales: $19.8 million (USD), SEK 186.7 million, down from SEK 205.2 million year-on-year due to currency effects.

• Q4 EBITDA: SEK 7.0 million (3.8% margin, down from 14.2%); underlying margin excluding tariffs/currency was 11%.

• Full-year 2025 EBITDA: SEK 77.8 million (9.6% margin, down from 12%); operating profit SEK 50.2 million (6.2% margin).

• Operating cash flow in Q4: -SEK 34.2 million, mainly due to inventory purchases; full-year operating cash flow SEK 16.1 million.

• Interest-bearing net debt at year-end: SEK 3.3 million (vs. net cash SEK 50.6 million at end 2024).

Outlook and guidance

• Growth in 2026 expected to be weighted toward H2 due to strong H1 comparables and potential impact from global memory shortage.

• Profitability expected to improve as tariff and inventory cost impacts diminish and operational improvements take hold.

• Management prioritizes margin improvement and continued investment in product portfolio expansion.