Fractal Gaming Group AB (publ) (FRACTL) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hi everyone and welcome to today's presentation of Fractal Gaming Group's second quarter 2026 report. As we described after the first quarter, the gaming hardware market went through a rapid and significant slowdown in the beginning of the year, driven by sharply increased memory prices. That environment continued through Q2 and had a clear impact on both end consumer demand and even more significantly on the purchasing behavior across the distribution channel. So today I want to focus on three things. First, what we are seeing in the underlying market and in end consumer demand. Second, how the channel inventory adjustment has affected our reported sales and financial performance, and third, the actions that we are taking to adapt the business to the current environment while continuing to invest in our product portfolio and the long-term market position. Karin and I will take you through the quarter, and as usual, we'll finish off with a session for questions. Let me start with the key developments in the quarter. The slower market that we discussed after Q1 continued where elevated DRAM pricing increasing the overall cost of building PCs and thereby putting pressure on end consumer demand. But it is important here to separate the development in underlying consumer demand from what we have reported as net sales. Our net sales were 75 million SEK, down 65% year-on-year and 64% organically. that is clearly a very significant decline. At the same time, sales out to end consumers declined by 28%. And importantly, we continue to gain share across our key markets. Since February, reported sales out has stabilized, just about $4 million per month. And during summer, we saw some improvements from that level in June and July, partly supported by Prime Day. So while demand r...