12th Mar 2026 15:55
Fragbite Group AB (publ) ("the Company") today publishes its Annual Report for the financial year 2025. The Annual Report is attached to this press release and made available on the Company's website.
Fragbite Group closes 2025 with a positive result, strong cash position, a balanced capital structure and in the starting blocks for a new journey. We have smaller business operations than a year ago due to strategic divestments, and now the task ahead consists of growing the business profitably and in a sustainable manner.
2025 was a year of change in which we worked with determination to meet the commitment we made to shareholders in 2024 - to improve the Company's capital position, reduce debt, create a stronger capital structure and ensure positive cash flow throughout the Group. We succeeded in achieving these objectives despite a fair share of challenges, which is a sign of strength.
DIVESTMENTSOn 31 May subsidiaries Lucky Kat and Wagmi were divested. The decision was difficult, particularly in regard to the Lucky Kat employees who had delivered with commitment and on a high, professional level over a long period of time. The divestment was prompted by the negative financial trend and cash flow that had persisted since the beginning of 2024. Given Fragbite Group's decentralised governance model, the Board concluded there was insufficient time to step in and establish a new organisation and capitalise on all the subsidiaries' assets, not without draining the other subsidiaries too much.
On 8 October, Fragbite Group sold Playdigious which since the acquisition in May 2021 has been a fantastic subsidiary with an exceptional, professional team, and also a successful investment delivering a strong total return. We were able to make a favourable divestment at a purchase price of SEK 115 million on a cash- and debt-free basis, in addition to retaining 90 percent of future net revenue from Playdigious Originals' PC games. Consequently, our collaboration with Playdigious will continue, which is very positive. The divestment of Playdigious proved to be the most advantageous solution for achieving our objectives and commitment towards the shareholders, allowing us to move forward with developing Fragbite Group and supporting new strategic initiatives.
RECOVERY AND NEW COST LEVELRevenue and EBITDA 2025 cannot readily be compared with 2024, as the divestment of Playdigious fundamentally changed the Company's size. Looking at the pro forma figures, the remaining business has seen a slight decline in revenue since 2024, largely driven by FunRock spending less on user acquisition (UA). Negative EBITDA for the remaining business has been reduced by SEK 3.5 million compared to 2024, driven by several factors, primarily cost reductions and increased revenues in FunRock's B2B Game Development business unit. EBITDA for 2025 amounted to SEK -2.6 million, with the deficit mainly attributable to the Parent Company's operations, lower revenues under Config and establishment costs for Bitcoin Treasury.
The Parent Company has maintained the lower cost level established following the 2024 cost reduction programme and reduced it further in 2025. As the divestment of three subsidiaries has led to a reduced workload in finance, the workforce has been downsized since the turn of the year, which will have additional positive impact on the cost level in 2026. The Parent Company is now a well-balanced, functional and strategically focused unit that maintains the listing on Nasdaq and actively contributes to building the business within the Company's three business areas.
FUNROCK PROFITABLE - EXPANDSFunRock has expanded business unit B2B Game Development (previously called Hybrid workfor-hire). Development has been carried out on two games for the same client, based on the subsidiary's existing game engines. During the year, both projects have been expanded, one of the games has been released and is showing steady and sustained traffic to the client's other content, which has driven increasing revenues. The games function as a retention tool to support player engagement and loyalty. They consist of a layer that sits on top of the client's iGaming content, integrated but not itself an iGaming game. FunRock's game product is a classic entertainment game which introduces a progression loop that in turn supports the revenue generation from the iGaming operator's core content. Early March a new client was signed and negotiations with additional counterparts are ongoing.
The revenue model consists of a combination of remuneration for game development and customisation of our game engines, with revenue share or profit share that is generated when the game drives player engagement in the client's iGaming environment. The revenue/profit share component kicks in when the game is deployed, allowing for steady recurring income over time at no added cost. This is comparable to having a free-to-play game in market circulation but without incurring regular UA investments or paying for third-party distribution and/or publishing.
At the end of the year two projects were delayed at the client's request, which has had an impact on FunRock's revenue. The collaboration is profitable, but the delays underscore the importance of continued focus on sales with the aim of both expanding and reducing dependence on individual game projects. FunRock thus has a lower adjusted EBITDA in 2025 than expected, but it remains positive and has improved in relation to 2024, mainly driven by B2B Game Development but also by increased profitability for MMA Manager 2. FunRock has established a well-balanced level where the game delivers ongoing revenue with moderate UA and good margins, which is very encouraging.
Within proprietary game development work is ongoing on a new IP with the goal to release a free-to-play mobile game at the end of 2026. Altogether, 2025 is a successful, profitable year for FunRock, and there are many opportunities for growth.
SWEDISH CUP SUCCESSFUL, CHALLENGES FOR CONFIGUnder business area Esports, The Swedish Cup (sv. Svenska Cupen) was a profitable project also in 2025. A move to larger premises paved the way for record ticket sales, confirming that the Swedish Cup is strengthening its position as Sweden's largest national esports event. The tournament had over 3.2 million started streams and continued to grow on social media also this year, with the strongest impact on Tiktok, where engagement more than tripled compared to 2024. The Swedish Cup now has four years under its belt with satisfied participants, partners, and sponsors, several of which are global brands.
After two strong and profitable years, the business area had a more challenging 2025 with a 31 percent decline in revenue compared to 2024. The decline is attributable to Config and a sharp drop in demand in the market for advertising and marketing services. The recently launched business vertical Config Ads has continued potential but has grown slowly, mainly due to third party technical issues, hence its income has not been able to outweigh the decline. At the same time, it is worth noting that Config, despite a gradually weaker market in recent years, has conducted award-winning quality projects at a time when many competitors have been forced to close. There are indications that the market is about to turn around, but the experiences of the past year have highlighted the need to broaden our revenue models to reduce vulnerability and stand stronger across economic cycles. With an extremely professional and knowledgeable team with great potential, we have a clear goal of returning to profitability in 2026.
BITCOIN TREASURY - LONG-TERM FOCUS AND YIELDOn 30 June, business area Bitcoin Treasury was established, and in July, SEK 11 million in seed capital was raised through convertible loans. At the end of the year, the holding was 30.25 BTC. In October, the Company entered into an agreement with Alumni Capital regarding a so-called Equity Line of Credit of up to SEK 200 million, which the Company intends to utilise when market conditions are favourable.
The decision to introduce Bitcoin to the balance sheet reflects the Company's belief in its potential as a long-term value preserver and asset for growth. Increasing shareholder value via Bitcoin is a long-term strategy, and we see an opportunity to be at the forefront in the Nordics with active treasury operations and through generating yield by leveraging Bitcoin. In January, SEK 15 million was invested in Strategy Inc., the world's largest non-institutional owner of Bitcoin, which expands the Company's long-term exposure to Bitcoin and enables yield through options trading. The Company intends to explore more alternatives to generate yield by leveraging Bitcoin in 2026.
With our Bitcoin holdings held in one of the world's most secure custodial platforms, Fragbite Group has established a secure security protocol that protects both the Company and its representatives, as well as entails that the holdings are insured against theft.
THE GROUP DEVELOPSIn October, we carried out a strategic investment of SEK 2.7 million into a profitable growth company within iGaming, an investment that over time is expected to generate recurring returns and access to potential new clients. The agreement that FunRock is expected to sign in the near future has been made possible by this collaboration, and the investment has already borne fruit in the form of valuable contacts.
In January, I assumed the position of CEO after Stefan Tengvall and am grateful for his work during a period of significant change. Stefan remains a Board Member and our shared goal is to create stability in both the immediate and long term. My intention is to build on the structural measures that have already taken place, clarify the Company's priorities, and ensure growth and financial responsibility.
Fragbite Group's new strategic platform is firmly grounded in our commitment to creating shareholder value. We will work diligently to achieve positive operating income and cash flow in the near term by expanding business area Gaming through more client projects and through selective investments, by establishing new revenue models for business area Esports, and by being at the forefront of creating recurring yield by leveraging Bitcoin.
Michael Lundgren, President and CEO
The Annual Report is available on the Company's website: https://fragbitegroup.com/en/investors/financial-reports/
For questions, please contact:
Erika Mattsson, Chief Communications Officer[email protected]Phone: +46 8 520 277 82
Redeye Nordic Growth AB is the Company's Certified Adviser.
About us
Fragbite Group AB (publ) is a Swedish corporate group based in Stockholm that creates long-term shareholder value through combining well-established business operations in Gaming and Esports with an ambitious, long-term Bitcoin Treasury strategy. Fragbite Group's oldest subsidiary was founded in 2002, while the group was formed in 2021 when the share was also listed on Nasdaq First North Growth Market under the ticker $FRAG.
Attachments
Fragbite Group AB (publ) Annual Report 2025