Design Delight Studio

Fractal Gaming Group Year-End and Q4 2025 Financial Summary

Fractal Gaming Group, a Swedish PC gaming hardware company renowned for its Scandinavian design and innovation, released its financial results for Q4 and full-year 2025, reflecting solid growth alongside operational challenges.

Key Financial Highlights

Q4 2025:

• Net sales declined 9% to SEK 186.7 million from SEK 205.2 million, yet organic growth remained positive at 4%.
• Product profit was SEK 66.6 million, yielding a product margin of 35.7%, down from 39.1% in Q4 2024.
• EBITDA slipped sharply to SEK 7.0 million with a margin of 3.8%, compared to SEK 29.0 million (14.2%) a year earlier.
• EBIT dropped to breakeven (SEK 0.0 million), a notable decrease from SEK 21.4 million (10.4% margin).
• Operating cash flow was negative SEK –34.2 million versus a positive SEK 17.2 million previously.
• Earnings per share stood at SEK –0.0 compared to SEK 0.7 in Q4 2024. Full Year 2025 (Jan–Dec):
• Net sales increased 16% to SEK 809.5 million from SEK 697.9 million, with strong organic growth of 25%.
• Product profit rose to SEK 305.2 million, although product margin contracted from 40.3% to 37.7%.
• EBITDA totaled SEK 77.8 million (9.6% margin), down from SEK 84.0 million (12.0%) in 2024.
• EBIT decreased to SEK 50.2 million (6.2% margin) versus SEK 58.6 million (8.4%).
• Operating cash flow reached SEK 16.1 million, lower than SEK 59.2 million previously.
• Earnings per share were SEK 1.1, falling from SEK 1.6 in 2024. CEO Commentary and Market Conditions

CEO Jonas Holst highlighted the launch of the Scape gaming headset as an entry into a new product category guided by Fractal’s distinctive Scandinavian design. Despite maintaining organic sales growth and a 25% USD sales uplift, profitability was impacted by external pressures including tariffs, currency fluctuations, and inventory costs in the U.S.

Market-wide component shortages, especially RAM and NAND memory due to surging demand from the AI sector, have increased pricing and constrained availability, affecting both DIY enthusiasts and consumer markets. Holst noted easing in trade tariff uncertainties and emphasized the company’s strategic adjustments in pricing, inventory management, and production to maintain balance between growth and profitability.

Outlook

Fractal enters 2026 with reinforced product offerings and a stable global gaming brand. While expecting growth to moderate in the first half due to strong prior-year comparisons, the company anticipates accelerated growth in the latter half of the year.

Additional Information

• A webcast and call with CEO Jonas Holst and CFO Karin Ingemarson is scheduled for February 5, 2026, at 11:00 CET.
• Fractal Gaming Group is publicly traded on Nasdaq First North Premier Growth Market and operates globally with offices in Sweden, Taiwan, China, and the USA.

This report underscores Fractal Gaming Group’s resilience amid external economic challenges and evolving component markets, maintaining its commitment to innovation and premium quality in the PC gaming hardware sector.

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