This article first appeared on GuruFocus .
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Net Revenue:SEK1.323 billion, representing an organic decline of 1.3%.
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Adjusted EBITDA:SEK387 million, with a margin of 29%, up from 23% in Q1.
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Free Cash Flow:SEK59 million, supported by the Gameberry settlement.
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Gross Margin:Increased by 2 percentage points year on year to 84%.
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User Acquisition Costs (UAC):SEK340 million, down from SEK436 million in Q2 2025, representing 26% of net revenue.
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Cash Flow from Operations:SEK644 million, benefiting from SEK245 million related to the Gameberry settlement.
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Cash Flow from Investing Activities:SEK611 million, primarily reflecting earnout settlements.
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Net Debt:SEK4.6 billion, reduced by SEK621 million from the previous quarter.
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Leverage Ratio:2.2 times.
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Key Franchises Organic Growth:10% year on year.
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Joe Walker Revenue:SEK220 million, with organic growth of 11%.
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Supremacy Revenue:SEK214 million, with an organic decline of 2%.
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Big Revenue:SEK172 million, with organic growth of 79%.
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BitLife Revenue:SEK100 million, with an organic decline of 19%.
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Empire Revenue:SEK104 million, with organic growth of 2%.
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Albion Revenue:SEK95 million, with organic growth of 10%.
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Board Revenue:SEK71 million, with organic growth of 24%.
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Other Games Revenue:SEK334 million, with an organic decline of 24%.
Release Date: July 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Stillfront Group AB ( STLFF ) reported a strong adjusted EBITDA increase to SEK387 million, with a margin improvement from 23% in Q1 to 29% in Q2.
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Key franchises demonstrated double-digit organic growth for the second consecutive quarter, indicating the success of the company's strategic focus.
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The company achieved strong cash generation, with free cash flow amounting to SEK59 million, supported by underlying business performance and the Gameberry settlement.
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Joe Walker franchise returned to double-digit organic growth, with net revenue of SEK220 million, reflecting a rebound from previous commercial slowdowns.
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Albion franchise expanded its player base with a successful launch on Xbox Series X, contributing to a 10% organic growth in the quarter.
Negative Points
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Overall net revenue experienced an organic decline of 1.3%, with an absolute year-on-year decrease of 8% due to negative FX impacts and recent divestments.
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Supremacy franchise faced an organic decline of 2% due to a challenging user acquisition environment compared to favorable conditions in the previous quarter.
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BitLife reported a significant organic decline of 19%, attributed to challenging comparison figures and a disciplined user acquisition approach.
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Other games segment saw a 24% organic decline in net revenues, reflecting deliberate reductions in user acquisition and divestments impacting reported figures.
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The CEO succession process was announced, which may introduce uncertainty during the transition period, although the strategic direction remains unchanged.
Q & A Highlights
Q: Can you discuss the environment for user acquisition costs (UAC) and whether we should expect a weaker revenue growth trajectory due to reduced UAC? A: Alexis Bonte, CEO, explained that the reduction in UAC was primarily due to the normalization of launch investments for Big Farm Homestead. The environment for UAC was less favorable, particularly for the Supremacy franchise. However, the UAC environment is dynamic and can change quickly. Emilie Villatte, CFO, added that they apply strict criteria to UAC investments and will continue to do so, deploying UAC where opportunities arise.
Q: Could you provide more background on the decision for the CEO succession process? A: Alexis Bonte, CEO, stated that his objective was to set the company on a new strategic path and build a strong executive team. With two consecutive quarters of successful strategy execution, he and the board agreed it was the right time to initiate a CEO succession process. He remains committed to leading until a successor is appointed.
Q: Will the strategic review be completed before the CEO transition, and what progress has been made? A: Alexis Bonte, CEO, mentioned that several small divestments have been made to focus on key franchises. The strategic review remains ongoing, and while it may not be completed before a new CEO is appointed, they continue to focus on simplifying the group and enhancing long-term prospects.
Q: How did Joe Walker achieve such strong growth despite regional challenges? A: Alexis Bonte, CEO, highlighted Joe Walker's resilience and strong community engagement. Despite regional difficulties, the franchise grew by 1% during challenging times and returned to double-digit growth as conditions improved. The franchise is not heavily dependent on user acquisition, contributing to its stability.
Q: Were there any surprises in Joe Walker's performance post-Q1? A: Alexis Bonte, CEO, noted that while they expected some negative impact from the FIFA World Cup, the actual impact was less than anticipated. Overall, there were no major surprises, and the franchise's performance was in line with expectations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
