A “solid” final quarter is attributed to Kingdom Come Deliverance 2, which reached 3m sales
Embracer Group has published its financial results for the fourth quarter ending March 2025, reporting declines across its PC/console and mobile segments on both the quarter and the fiscal year.
Full-year accounts also reveal Embracer has cut the number of its total game development projects from 141 to 108, and its headcount from 9692 to 7180. 5378 of those staff are game developers.
Here’s what you need to know:
The numbers
Q4 (3 months ended March 31, 2025)
- Net sales: SEK 5.4 billion ($560.5 million, down 6% year-on-year)
- PC/Console games: SEK 3 billion ($311.4 million, down 2% year-on-year)
- Mobile: SEK 943 million ($97.9 million, down 31% year-on-year)
- Entertainment & services: SEK 1.3 billion ($134.9 million, up 9% year-on-year)
Full-year (12 months ended March 31, 2025)
- Net sales: SEK 22.3 billion ($2.32 billion, down 18% year-on-year)
- PC/Console games: SEK 1.5 billion ($155.7 million, down 27% year-on-year)
- Mobile: SEK 5.3 billion ($550 million, down 9% year-on-year)
- Entertainment & services: SEK 6.5 billion ($674.6 million, down 7% year-on-year)
Embracer attributes its “solid” quarter to the performance of Kingdom Come Deliverance 2, which reached three million copies sold and “maintained a highly positive player and critic reception.” It believes the DLC and free updates planned across the next 12 months will keep players “excited and deeply engaged.”
The firm makes a distinction between actual and organic growth, and states that though its mobile games sales fell by 31% between January and March 2025, its organic growth was 30%. It also states its PC/console games sales displayed an “organic growth” of 22%.
Embracer also noted it had made “significant progress in the process of transforming the Group,” with the divestment of Easybrain and Asmodee successfully completed, and Coffee Stain Group expected to be spun off by the end of the calendar year.
“In a solid ending to the year, net sales grew by 19% organically to SEK 5.4 billion, while Adjusted EBIT grew by 44% year-on-year pro forma to SEK 1.1 billion, with a free cash flow of SEK 1.0 billion in Q4,” said CEO Lars Wingefors.
“Kingdom Come: Deliverance II continued to perform in Q4, and reached 3 million sold copies after quarter-end. Organic growth within Mobile accelerated to 30% year-on-year. By the end of 2025, we now plan to spin off Coffee Stain Group, a group of leading community- driven game developers and publishers. We have a strong financial position, and we remain focused on enhancing efficiency and long-term resilience ahead of the spin-off.
Looking ahead
Right now, the group expects to release 76 games across FY 2025/26, “with a mix of new IPs, sequels, and remasters,” including Metal Eden, Gothic 1 Remake, Reanimal, Fellowship, Wreckreation, the next SpongeBob SquarePants game, Norse: Oath of Blood, and Deep Rock Galactic: Rogue Core. It also makes explcit mention of two AAA games; Killing Floor 3 – which is now scheduled for Q2 – and Marvel 1943: Rise of the Hydra, which is scheduled to release sometime in the 25/26 fiscal year. Embracer “expect[s] Marvel 1943: Rise of Hydra to drive notable revenues but to have lower margins due to shared economics with several other partners.”
A previously mentioned third AAA game has been delayed to 2026/27 as management takes the “prudent view” that “the game will likely need a few more quarters to polish.” An additional nine AAA games are planned across 2027/28 and 2028/29 financial years.
Earlier today, we reported THQ Nordic’s studio Campfire Cabal has returned after being shuttered in 2023. Announcing the news, the developer said it had “never shut down” despite closing as part of THQ Nordic’s parent company Embracer’s restructuring efforts.
