This article first appeared on GuruFocus .

Release Date: February 05, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Fractal Gaming Group AB ( FRA:5HS ) achieved a record year with organic growth reaching 25% for the full year.

• The company reported strong sales in new product categories, which now represent 17% of total net sales.

• Successful end-year sales campaigns and new product categories contributed to the highest sales level ever reported for one quarter.

• Fractal Gaming Group AB ( FRA:5HS ) maintained a solid financial position with low net debt, providing flexibility for strategic initiatives.

• The company received significant brand recognition, with products featured in 'best of 2025' lists and winning awards such as 'Case of the Year' by Gamers Nexus.

Negative Points

• Profitability was negatively impacted by external factors such as tariffs and currency movements, with EBITDA margin dropping to 3.8% in Q4.

• Reported net sales declined by 9% year-on-year due to currency translation effects and tough comparables.

• The global memory market is experiencing a shortage, which could impact availability and pricing of components, affecting future volumes.

• Higher personnel expenses and logistics costs weighed on EBITDA, reflecting continued investment in organizational capabilities.

• Gross margins for the 'other' product category, including headsets and chairs, dropped significantly from 30% in Q3 to 24% in Q4.

Q & A Highlights

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Q: How might the ongoing memory crisis impact future volumes, and when could this impact be felt? A: CEO Jonas Holst noted that the memory situation is being closely monitored and is expected to impact the beginning of 2026. However, it's still early to determine the full extent of the impact. The company is assessing the situation to manage decisions accordingly.

Q: Can we expect below-normal seasonality in Q1 due to the memory crisis, and how will inventory levels be affected? A: CEO Jonas Holst mentioned that while Q4 ended with balanced inventory levels, the memory situation could impact market dynamics. Growth is expected to be more weighted towards the second half of the year.

Q: With recent positive tariff news, should we expect a normalization of margins in Q2, and will US warehousing costs decrease? A: CEO Jonas Holst explained that recent tariff extensions and reductions provide more stability for planning. The company is actively working to manage US inventory levels, which were built up due to potential tariff changes.