Redeye comments on Fractal Gaming Group’s Q1 2026 report, released this morning, which came in below our expectations on both net sales and Sales Out, but ahead on profitability metrics. Sales Out declined by 21% year-on-year to USD14.7m, missing our estimate by approximately 11%, as a global shortage of memory components caused DRAM prices to surge and triggered a drastic slowdown across the gaming hardware market. Despite the revenue shortfall, a product margin meaningfully above our estimate and an OPEX base well below expectations combined to deliver EBIT of SEK-5.8m against our estimate of SEK-8.6m. Given the simultaneously announced SEK40m cost savings programme, a materially improved tariff environment and uncertainty over the pace of market recovery, our near-term estimates are subject to many moving parts, but our preliminary assessment is that it will be relative valuation neutral.
LÄS MER
