This article first appeared on GuruFocus .
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Net Sales:EUR 422.1 million, up 20.9% (20.2% organically).
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Adjusted EBITDA:EUR 61.9 million, up 55%.
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Adjusted EBITDA Margin:14.7%, up 330 basis points from 11.4% last year.
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Board Game Sales Growth:Up 16%.
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Trading Card Game Sales Growth:Up 23%.
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Free Cash Flow:EUR 37.5 million, compared with EUR 24.7 million in the same period last year.
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Net Debt to Adjusted EBITDA:1.6 times before M&A commitments and 1.7 times after M&A commitments.
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Cash and Cash Equivalents:EUR 196.5 million at quarter end.
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Release Date: August 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Delivered double-digit growth in both sales and earnings, with net sales up 20.9% to EUR 422.1 million and adjusted EBITDA up 55% to EUR 61.9 million.
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Adjusted EBITDA margin expanded by 330 basis points to 14.7%, with the last 12-month margin reaching 17.5%, approaching the medium-term target of above 18%.
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Strong performance across board games (16% growth) and trading card games (23% growth), with all continents contributing and broad-based growth across categories and publishing portfolio.
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Successful integration of ATM Gaming, with distribution internalized in France and expansion into the Netherlands and Belgium, and sell-out at retail exceeding 60% year-over-year.
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Healthy free cash flow of EUR 37.5 million and improved balance sheet, with net debt to adjusted EBITDA at 1.6x before M&A commitments and credit rating upgrades from all three agencies.
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Continued strategic progress, including the acquisition of full publishing rights for Time's Up!, successful Zombicide crowdfunding campaign (EUR 3 million), and new distribution partnerships like the Naruto TCG.
Negative Points
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Trading card games published by Asmodee Studios were broadly stable organically, with a timing effect of approximately EUR 10 million in Star Wars Unlimited revenue shifting from Q1 to Q2.
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ATM Gaming's contribution to consolidated net sales was limited in Q1 due to intercompany sales timing, with only about one-third of its revenue recognized, though this is expected to normalize.
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The company faces a demanding comparison with last year's World Cup in the trading card games category, which could pressure future growth rates.
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Macroeconomic uncertainties remain, and the company continues to monitor the situation closely, which could impact consumer demand.
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The margin target of above 18% is still not fully achieved, and the company acknowledges that it requires continued execution and delivery on the year ahead.
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Working capital development showed seasonal inventory build-up and higher trade receivables, which could impact cash flow in the short term.
Q & A Highlights
Q: Can you quantify the timing effect of Star Wars Unlimited on Q1 sales and confirm it will return in Q2? A: Thomas Kgler (CEO) confirmed that roughly EUR 10 million of revenue is transferring from Q1 to Q2 related to Star Wars Unlimited. This is a timing effect due to the release schedule, not a demand issue.
Q: Is the 18% adjusted EBITDA margin target within reach for this fiscal year? A: Andrea Gasparini (CFO) stated that the target is within reach, though it requires continued delivery throughout the year. The LTM adjusted EBITDA margin has already improved to 17.5%, driven by the organic business model and value-creative contributions from M&A.
Q: What is the underlying market growth for board games, and how is Asmodee performing relative to it? A: Thomas Kgler (CEO) noted that the board game market grew slightly above mid-single-digits in the quarter, while Asmodee delivered above double-digit growth. The strong performance is broad-based across geographies, with the U.S. inventory normalization now behind them.
Q: How should we view the revenue recognition timing for ATM Gaming, and will there be a catch-up effect in Q2? A: Andrea Gasparini (CFO) explained that roughly one-third of ATM's Q1 sales were recognized in consolidated net sales, with two-thirds sitting in distribution inventory due to the internalization of distribution in France, Netherlands, and Belgium. This is a timing effect, not related to consumer demand, as sell-out at retail exceeded 60% year-over-year.
Q: Are there any material changes to ATM Gaming's margins now that distribution has been brought in-house? A: Andrea Gasparini (CFO) confirmed that on a standalone basis, ATM's profitability is in line with past performance and the EBITDA margin communicated in the press release. The internalization of distribution is consistent with past practices between studios and distribution units.
Q: Is the PokAmon Company actively trying to reduce the cyclicality of TCG release cycles? A: Thomas Kgler (CEO) confirmed that the Mega Evolutions set is an intermediary set lasting two years, with the next generation launching next year alongside a new video game. This appears to be a deliberate strategy to smooth out the traditional three-year cycles.
Q: What potential do you see in the new Naruto TCG partnership with Bandai? A: Thomas Kgler (CEO) declined to provide specific potential figures but noted that Naruto is one of the strongest manga franchises globally. While it may not be immediately comparable to One Piece, which has years of history, it is expected to be a strong addition to the portfolio.
Q: Should we expect additional tariff refunds in the coming quarters, and how should we view them? A: Andrea Gasparini (CFO) confirmed that additional refunds are expected, with the largest portion currently anticipated in Q2, subject to administrative processes. The EUR 1.3 million in Q1 was classified as an item affecting comparability to maintain clarity on underlying profitability.
Q: How has the concentration of sales among your largest TCG franchises evolved, and is earnings volatility structurally lower? A: Thomas Kgler (CEO) stated that growth is seen across most TCGs, with quarterly variations driven by release timing. The continued diversification of the portfolio, including new lines like Naruto, makes the business more diversified and stronger for the future.
Q: Do you expect games published by Asmodee Studios to return to organic growth in the coming quarters? A: Thomas Kgler (CEO) confirmed this is expected. Despite the Star Wars Unlimited timing effect, the segment was broadly stable year-over-year in Q1, meaning the rest of the portfolio is growing significantly and should continue to do so.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
