Embracer Group’s Cash EBIT jumped to SEK 203 million in the July to September quarter, up from a loss of SEK 66 million a year earlier, as the publisher prepares a run of Xbox releases that includes Metro 2039, Tomb Raider: Legacy of Atlantis and Stage Tour.
The figures come from Embracer’s interim report for the second quarter of the 2026/27 financial year, published on 11th November. Net sales rose 14% to SEK 4,127 million, or 20% on an organic basis. Operating profit (EBIT) was SEK 121 million, compared with a loss of SEK 141 million a year ago, and adjusted EBIT was SEK 307 million, up from a loss of SEK 1 million. Free cash flow after changes in working capital was SEK 55 million, against an outflow of SEK 508 million in the same quarter last year.
Embracer has reiterated its forecast of Cash EBIT of at least SEK 1.0 billion for the full 2026/27 financial year.
Catalogue sales, but no new Fellowship releases
Fellowship Entertainment, the operating segment that looks after IPs such as Tomb Raider, Metro, Dead Island and Kingdom Come, did not release any new games in the quarter. Catalogue sales were SEK 511 million, down 9% year on year. The five biggest catalogue contributors were Kingdom Come: Deliverance II, Remnant II, Kingdom Come: Deliverance, Dead Island 2 and Metro Exodus.
Publishing and development sales fell 26% to SEK 727 million, which Embracer puts down to a quieter release slate and fewer work-for-hire projects. Licensing more than made up for that in earnings terms: the business rose 277% to SEK 317 million, helped by Wizards of the Coast’s Magic: The Gathering | The Hobbit trading card game, which Embracer says exceeded management expectations. Fellowship’s Cash EBIT grew 28% to SEK 124 million.
The Xbox releases still to come
Stage Tour, the music game from RedOctane Games, launches on Xbox Series X|S on 10th December as an Xbox Play Anywhere title. Embracer says early pre-orders for the game and its hardware bundles have been ahead of expectations, that several hardware products have already passed their launch allocation, and that the release date trailer is approaching 25 million views, 20 million of them from the game’s own channels.
Titan Quest II gets its full launch, including on Xbox Series X|S, on 19th January 2027. Embracer says it has sold well over 500,000 units since it entered Early Access in August 2025, and that it now has well over one million outstanding wishlists.
Metro 2039, from 4A Games and Deep Silver, is due on Xbox Series X|S and Xbox PC on 4th February 2027, with Xbox Play Anywhere. Its Collector’s Edition sold out within a week, and Embracer says the game has now surpassed 2 million wishlists, outpacing Kingdom Come: Deliverance II at a comparable stage. The company also points to recent next-gen updates for the Metro catalogue, including the Metro Redux Next-Gen Update for Metro 2033 Redux and Metro: Last Light Redux on Xbox Series X|S, as a way of bringing existing fans back ahead of launch.
Tomb Raider: Legacy of Atlantis, from Crystal Dynamics, Flying Wild Hog and Amazon Games, follows on 12th February 2027 on Xbox Series X|S. Embracer says the franchise’s 30th anniversary celebrations drove high engagement, that the game’s teaser passed 7 million organic views in less than a week, and that the Collector’s Edition sold out immediately. The mainstream launch campaign is due to start in December.
Closer still is Gothic 3 Classic, which arrives on Xbox Series X|S on 24th November.
Wider group growth, and a 2027 spin-off
The wider Embracer operating segment grew net sales 21% to SEK 3,082 million, or 29% organically, with Cash EBIT of SEK 128 million compared with a loss of SEK 109 million a year earlier. Mobile and Entertainment & Services each grew net sales by around 40%. Embracer says the gap between reported and organic growth is mainly explained by the divestment of Arc Games and Cryptic Studios in November 2025.
The planned 2027 spin-off of Fellowship Entertainment remains on track, Embracer says, with work now shifting towards a capital markets event and listing readiness in the second half of the financial year. For the third quarter, the group expects Cash EBIT to be broadly in line with the same period last year, balancing new releases against a strong catalogue comparison for Fellowship.
