Fragbite Group (FRAG) Q3 2026 earnings summary

Executive summary

• Q3 revenue was SEK 5.9m, up SEK 1.1m versus the comparable 2025 pro forma period; EBITDA was SEK -0.9m, with legal costs and weaker Esports activity weighing on results.

• Growth in Gaming and new game-development contracts improved recurring-revenue prospects; the year-end profitability objective remains in place, with increased game profit share and options proceeds expected to support Q4.

Financial highlights

• Q3 revenue was SEK 5.9m versus SEK 47.6m reported in 2025; disposals drove the reported decline, while comparable pro forma revenue was SEK 4.8m.

• Q3 EBITDA and adjusted EBITDA were both SEK -0.9m; EBIT was SEK -2.2m and net loss SEK 3.9m, including a SEK 1.3m impairment on buyer-loan receivables.

• 9M revenue was SEK 14.9m, EBITDA SEK -5.8m, EBIT SEK -11.4m and net loss SEK 14.0m; diluted EPS was SEK -1.73.

• Management cited Q3 operating cash flow of SEK 0.9m, including SEK 1.2m from options trading; the cash flow statement showed SEK -4.1m after working-capital movements.

• Cash and cash equivalents were SEK 9.1m at quarter-end versus SEK 5.2m a year earlier; Q3 cash flow was SEK -4.7m.

Outlook and guidance

• The objective remains for the businesses retained after 2025 disposals to be profitable and support the parent by end-2026; results were described as close to target at Q3-end.

• Higher Gaming revenue share and continued strong options-trading results are expected to support Q4; options cash flows remain difficult to forecast and may fluctuate with MSTR trading.

• Three additional client games are expected to be delivered by end-2026 and go live in early 2027, expanding revenue-share sources.

• Esports revenue and EBITDA are expected to face continued pressure in Q4 following reduced staffing and fewer projects.