Embracer Group AB

EMBRAC-B.ST

Entertainment · Communication Services

Also trades as: 0GFE.L

Price

kr 75.06

+3.00 (+4.16%)

Market Cap

kr 15.95B

Exchange

Stockholm Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Share count rising — dilution

+38.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 153.8M (2022) → 213.0M (2026)

Winston Score History

The full picture

Embracer Group is a Swedish video game company that owns a large collection of game studios and publishers. It makes and sells video games across many genres, from action and role-playing games to board games and comic books. The company owns well-known brands like Tomb Raider, Saints Row, and Borderlands, and sells to gamers worldwide on consoles, PC, and mobile platforms.

Embracer makes money by selling games outright, licensing its intellectual property, and collecting royalties. It operates globally, with studios spread across Europe, North America, and beyond, and has grown mainly by acquiring other studios rather than building organically. The company's large library of owned IP is its main competitive advantage, but its deeply negative operating margin and a failed $2 billion partnership deal in 2023 forced a major restructuring, including studio closures and asset sales — making financial stabilization the central challenge facing the business today.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+17.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+109.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

kr 0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

38.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

kr 5.4B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Embracer Group AB is a rare growth stock that's already generating positive cash flow while growing at 18%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

-2.4%

Thin — -2.4% gross margin

Profit after running costs

Operating Margin

-2.0%

Losing money on operations — -2.0%

Return on the money invested

ROCE

-31.5%

Weak — -31.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-31.5%

Shrinking sales (-31.5% YoY)

Profit growth

EPS YoY

-143.8%

Earnings shrinking (-143.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

9.9%

Modest free cash flow (9.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.09

Conservative — low debt load (0.09)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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