Soft Quarter Ahead of CSG Spin-Off

Embracer delivered a mixed Q2’25/26, with net sales slightly ahead of expectations but continued weakness in PC/Console dragging margins. Organic growth of 6% and steady performance in Entertainment & Services support an unchanged full-year outlook, with Q4 still expected to be the key release quarter. Near-term estimate changes appear limited, while the upcoming Coffee Stain spin-off remains the clearest catalyst given the market’s discount to the unit’s underlying quality.