Stillfront Group just released its Q3 2026 scorecard and the stock closed Friday at SEK5.62 after a rough run that left it down about 22% over the past month and 25% over the past week. The focus is not revenue; it is profitability pressure. Net income from continuing operations over the last twelve months was a loss of SEK1.98b even as Q3 net revenue landed at SEK1.3b with an adjusted EBITDAC margin of 28%.
The market is trading Stillfront as if the balance sheet strain and ongoing losses are the whole story. The earnings release suggests a more complicated picture.
Love Stillfront Group's 28% adjusted EBITDAC margin but worried about the ongoing SEK1.98b loss and balance sheet pressure? Screen for companies that pair strong profitability with sturdier finances using our list of solid balance sheet and fundamentals stocks (205 results) .
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025):SEK1,299m vs. SEK1,376m (decline of 5.6%)
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Net Income, excl. extra items (Q3 2026 vs. Q3 2025):SEK95m vs. SEK55m (increase of 72.7%)
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Basic EPS (Q3 2026 vs. Q3 2025):SEK0.18 vs. SEK0.11 (increase of 73.2%)
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Adjusted EBITDAC Margin (Q3 2026 vs. Q3 2025):28% vs. not disclosed (margin maintained at a high level based on current disclosure)
Stillfront is paying down debt and pointing to 2027 as a turning point. Ask Charlie what Stillfront's 2027 cash inflection could unlock .
Stillfront's Bull Case Hinges On Execution Milestones Met
Supporters of Stillfront Group argue that operating tweaks can turn the existing portfolio into a higher earning engine over time.
"Completion of the cost optimization program ahead of schedule, combined with major fixed cost cuts in North America and ongoing discipline in user acquisition, is creating a leaner operating base that can support higher EBITDAC margin and stronger free cash flow from the same or even lower revenue levels."
Q3 gives that claim real footing. Net revenue slipped year on year, yet adjusted EBITDAC margin held at 28% and free cash flow reached about SEK250m. User acquisition stayed at 24% of sales, while key franchises grew and funded debt paydown, which supports the leaner model the bullish view depends on.
The price and this Narrative do not agree. → Uncover what this Narrative says Stillfront Group is actually worth .
Stillfront Bear Case: Pipeline Depth Still Unproven
Bears argue that Stillfront Group is quietly shrinking its future opportunity set even as current franchises carry the load.
"While disciplined product development spending targeted to Europe and MENA APAC supports focused innovation, the lower overall CapEx and continued game closures may result in a thinner pipeline over time."
Q3 shows why that concern has weight. Seven key franchises now generate about 75% of revenue, while the broader portfolio fell 23% and is being harvested for cash. New projects such as Big Farm: Homestead and Supremacy, Warhammer 40,000 are progressing. However, the reliance on a handful of hits means the risk of a thinning pipeline has not been clearly ruled out.
Hunt For Mispriced Cash Engines
Stillfront Group shows how profitability and pressure can collide in one quarter. The real opportunity is spotting companies that could be undervalued before that gap closes.
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Company 1 - 43% below our estimate - converts leaner working capital and strong operating cash generation into funding treatments in high-demand therapeutic areas.
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Company 2 - 26% below our estimate - turns a long-cycle defense backlog and expanding autonomous programs into higher value support and equipment contracts.
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Company 3 - 37% below our estimate - deepens relationships with large merchants as rising transaction volumes shift toward higher margin payment products and automation.
Those are three of them. See the full list of 195 companies trading below our fair value estimates →
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SF.ST .
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