Stillfront Group (SF) Q2 2025 earnings summary

Executive summary

• Launched Supremacy: Warhammer 40,000 and advanced Big Farm: Upstead/Homestead to technical launch, with global launch of Supremacy: Warhammer 40,000 set for end of 2025.

• Expanded key franchises including Supremacy, World War 3, and Ludo Club; strengthened Candywriter Studio for BitLife expansion.

• Strategic review led to closure of Dream Garden and transition of Word franchise from Super Free to Moonfrog.

• Net revenue declined 11–11.3% year-over-year to SEK 1,436 million, with organic declines in Europe and North America partially offset by growth in MENA & APAC.

• Focused on cost discipline, cash flow generation, and targeted investments in core franchises.

Financial highlights

• Net revenue for Q2 2025 was SEK 1,436 million, down 11–11.3% year-over-year; key franchises contributed SEK 1,085 million (-6.3%), other segments SEK 352 million (-24.1%).

• Adjusted EBITDA/EBITDAC was SEK 374 million (margin 26%), down from SEK 505 million in Q2 2024.

• Free cash flow reached SEK 1,089 million on an LTM basis, with SEK 254–362 million in Q2 2025.

• Gross margin improved from 80% to 82% year-over-year, driven by increased DTC share and cost savings.

• Net result was SEK -72 million, compared to SEK -107 million last year.

Outlook and guidance

• Significant organic growth improvement expected in H2, but cautious on returning to positive organic growth in Q4 due to uncertainties around new game launches.

• Confident in cost savings program, targeting SEK 200–250 million annualized run-rate savings by end of Q4.

• Focus on offensive investments in key franchises, disciplined game launches, and BitLife DTC expansion in Q3 2025.

• Strategic review to further streamline portfolio and invest in scalable franchises.