Fractal Gaming Group AB (publ) (FRACTL) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hi everyone and welcome to today's presentation of Fractal Gaming Group's Q1 2026 report. During the call today, we will walk you through the key developments in the quarter, covering our performance, the market environment and the actions that we are taking going forward. We exited 2025 with a strong underlying sales development, and we initially saw a good start also to 2026. However, Market conditions then shifted rapidly, with demand weakening through the latter part of the quarter. Our focus has been on managing the shift in the market, adapting the business accordingly, and ensuring that we make the right decisions to develop Fractal for the long term. In today's presentation, we'll walk you through how these market conditions have impacted our performance, how we are responding, and how we see the path forward. Let's move directly into the key points of the first quarter. Q1 was clearly impacted by a sharp market slowdown, driven by shortage and price increases of memory components. This has led to higher system costs, a changing consumer behavior and a more cautious purchasing from our partners. Net sales amounted to 138 million SEK, corresponding to a decline of 39% year-on-year, or 28% organically if we're looking at US dollars. Looking at our sales out-to-end consumers, the drop was less prominent at negative 21%, and the bigger impact that we see on net sales can be explained by the channel dynamics where partners are more cautious in their purchasing. The decline in sales was most pronounced in the case category, but we maintained or strengthened our market's position despite increased competitive activity. Profitability was primarily impacted by these lower sales volumes, but some impact also from product margin as FX and tariffs continue to have a nega...