Coffee Stain Group - Interim report Q1 April - June 2026: Net sales amounted to SEK 253 million

FIRST QUARTER, APRIL-JUNE 2026 (COMPARED TO APRIL-JUNE 2025)

• Net sales increased by 37% (41% organic growth in constant currencies) to SEK 253 million (184).
• EBIT amounted to SEK 15 million (2), an EBIT margin of 6% (1%).
• Cash EBIT amounted to SEK 95 million (36), a Cash EBIT margin of 38% (20%).
• Cash flow from operating activities amounted to SEK 133 million (132). Net investments in intangible assets amounted to SEK -30 million (-43). Free cash flow after working capital amounted to SEK 100 million (85).
• Adjusted earnings per share amounted to SEK 0.25 (0.03).

CEO COMMENTS

Strong cash generation despite mixed release outcomes

The core portfolio remained resilient, while weaker engagement in two recent releases is shaping our development priorities and next steps.

The first quarter generated net sales of SEK 253 million, Cash EBIT of SEK 95 million and free cash flow after working capital of SEK 100 million. This strong cash generation, despite weaker-than-planned outcomes in Deep Rock Galactic: Rogue Core and Fellowship Season 3, demonstrates the resilience of Satisfactory and the rest of our core portfolio*.

Our proven games continue to generate revenue and cash, giving us room to take selective risks on new games. But that freedom must be matched by discipline. When the evidence changes, we need to respond quickly: improve the product where we see a credible path, or reduce investment where traction no longer supports the original case.

Game portfolio

Satisfactory continued to expand its audience, with net sales growing significantly year-on-year. The console release remained an important contributor, while Update 1.2, released in June, was well received and further improved the experience for both new and existing players.

Deep Rock Galactic: Rogue Core entered Early Access in May. The release benefited from the strength of the Deep Rock franchise and generated strong initial sales, but player sentiment was mixed and engagement declined faster than expected. We have a clear view of what did not work as intended and are taking focused action with the development team. Further commitment will depend on evidence of improved player engagement.

Multiplayer game Fellowship launched Season 3 in June, but engagement remained below our targets. Following the discussions described in the previous quarter, we have agreed a more sustainable setup with the external developer. From Q3 FY 2026/27, the game will be developed by a more focused core team of 15 FTEs, compared with 35 FTE previously. This creates a more efficient development setup, better aligned with the game’s current traction and priorities, while materially reducing our ongoing investment.

Looking ahead

During the quarter, Iron Gate announced Valheim 1.0 and releases on PlayStation 5 and Nintendo Switch 2, scheduled for September 2026. After six years in Early Access, existing players will finally receive the 1.0 release, while the launches on additional platforms will make the game available to new audiences.

Taking creative risks is part of building games, but so is acting when the evidence changes. As player response and commercial traction evolve, we adjust the product, the development plan and the level of investment. The actions will differ by game, but the principle is the same: support credible opportunities and remain disciplined.

This is our model in practice. Our established games provide a solid base and fund selective new bets. Small, empowered teams can respond quickly. When an outcome falls short, we can adjust our commitment and limit the downside while preserving the upside.

Anton Westbergh
Co-founder and CEO

Presentation of the interim report

Livestream presentation will be held today att 10:00 CEST.
CEO Anton Westbergh and CFO Erik Sunnerdahl will present the interim results and answer questions.
Questions can be submitted in advance by email to ir@coffeestaingroup.com and during the presentation.

• The presentation will be streamed live on Coffee Stain Group’s Youtube channel.
• Interim report and presentation material will be available on Coffee Stain Group’s website.