Stillfront Group (SF) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 2025 were SEK 1,545 million, representing an organic decline of 11.8–12% year-over-year, with profitability and cash flow improving due to cost savings and operational focus.

• Adjusted EBITDAC grew 12% to SEK 402 million, with margin up to 26%.

• Free cash flow reached SEK 1,107 million for the last twelve months, with Q1 free cash flow at SEK 194–402 million.

• Strategic review launched to reallocate resources, potentially divest or discontinue certain assets, and unlock shareholder value.

• Continued focus on expanding key franchises, launching new games, and organizational streamlining to drive long-term growth.

Financial highlights

• Net revenues for Q1 were SEK 1,545 million, with an organic decline of 11.8–12% year-over-year.

• Adjusted EBITDAC margin at 26% for Q1 2025.

• User acquisition costs at SEK 448 million, 29% of net revenue.

• Free cash flow for Q1 at SEK 194–402 million; LTM free cash flow at SEK 1,107 million.

• Net result improved to SEK 23 million (from SEK -10 million); earnings per share SEK 0.05.

Outlook and guidance

• Q2 expected to remain challenging for organic growth, with improvement anticipated in H2 2025 as new product investments materialize.

• Strategic review may result in selective divestments or discontinuations.

• Ongoing cost optimization targeting SEK 200–250 million annualized run-rate.