Modern Times Group (MTG) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered record financial results with net sales of SEK 3,159 million ($333M), up 14% pro forma and 37% in constant currency year-over-year, driven by both organic and pro forma growth and standout performance in key titles like RAID and new PlaySimple games.

• Adjusted EBITDA reached SEK 802 million ($84M), a 25% margin and 30% year-over-year growth, marking the sixth consecutive quarter of organic growth.

• Strategic priorities advanced, including rapid AI adoption, increased direct-to-consumer (D2C) revenue now at 39% of group revenues, and a new operating model with Midcore and Casual districts.

• AI integration is enhancing execution, content creation, and data analytics, driving efficiency and innovation across the group.

• Direct-to-consumer and data-driven strategies are delivering tangible benefits and supporting growth.

Financial highlights

• Net sales reached SEK 3,159 million ($333M), up 37% year-over-year in constant currency and 14% pro forma, with adjusted EBITDA of SEK 802 million ($84M) at a 25% margin, up 30% year-over-year.

• Unlevered free cash flow was SEK 582 million, with a 78% conversion rate on a rolling 12-month basis.

• User acquisition/marketing investment totaled SEK 1.2 billion, up 17% pro forma year-over-year, representing 38% of revenues.

• Adjusted net income on an LTM basis was SEK 1.6 billion, with adjusted EPS of SEK 13.54.

• Cash flow from operations was SEK 605 million in Q1 2026.

Outlook and guidance

• Full-year 2026 guidance: pro forma revenue growth of 5–8% and adjusted EBITDA margin of 22–24%.

• Medium-term targets: annual gross revenue growth of 3–7%, adjusted EBITDA margins above 24%, and unlevered cash conversion above 60%.

• Q1 outperformance not expected to be sustained throughout the year due to seasonality and event pacing, especially for RAID.