Embracer Group Q1 2026/27 Report: Gothic 1 Remake Nears Break-Even, Darksiders 4 and New Kingdom Come Confirmed for 2027–2028

Embracer Group published its interim report for the first quarter of fiscal year 2026/27 (April–June 2026) on August 13, 2026, revealing a sharp financial turnaround, strong debut sales for Gothic 1 Remake, and confirmed release windows for two long-awaited sequels: Darksiders 4 and the next Kingdom Come game. The company also provided an update on the planned spin-off of Fellowship Entertainment.

Broader Quarterly Financial Recovery

Embracer reported a significant improvement in its core financial metrics for Q1:

• Net sales reached SEK 3,943 million (SEK 3.94 billion), up 24% year-over-year and beating analyst estimates of SEK 3.61 billion .
• Organic growth was strong at 33% year-over-year .
• Cash EBIT swung to a positive SEK 47 million, reversing from a loss of SEK 99 million in the prior-year period .
• Free cash flow turned positive, reaching SEK 3 million compared to a deficit of SEK 383 million a year earlier .
• Management reiterated its full-year Cash EBIT guidance of at least SEK 1 billion .

Investors responded positively: Embracer's stock rose 9% on the news, with pre-market trading up as much as 12.6% . The PC/Console segment was a key driver, with revenue climbing 68% led by Gothic 1 Remake .

Gothic 1 Remake Performance

The revival of the cult-classic RPG delivered a strong commercial performance in its early weeks:

• Sales figures: Embracer disclosed that Gothic 1 Remake sold over 500,000 copies worldwide during its debut week (released June 5, 2026) across PC, PlayStation 5, and Xbox Series X/S .
• Break-even status: The game has almost fully recouped its development and marketing costs and is approaching break-even, expected to become profitable soon . Embracer did not disclose the exact budget or current revenue .
• Estimated Steam revenue: Embracer provided no official Steam revenue figure. Third-party tracker Gamalytic estimated roughly 390,000 Steam owners shortly after launch , but these are unofficial estimates and should be treated with caution. The publisher has not confirmed any specific Steam revenue number.

Darksiders 4 and Next Kingdom Come — Confirmed Release Windows

Embracer's report locked in release windows for two major upcoming titles:

• Darksiders 4 (developed by Gunfire Games) is planned for release in FY 2027/28, meaning between April 1, 2027 and March 31, 2028 . This will be the first mainline entry in the franchise since 2018's Darksiders III .
• Next Kingdom Come game (by Warhorse Studios, possibly titled Kingdom Come Salvation or Kingdom Come: Deliverance sequel) is also planned for the same FY 2027/28 window .
• Embracer's report explicitly stated: "In FY 2027/28, we expect the release of the next game in the Kingdom Come franchise from Warhorse Studios, Darksiders 4 from Gunfire Games, as well as the externally published Tomb Raider: Catalyst" .

Tomb Raider: Catalyst (developed by Crystal Dynamics) is also expected within that same 12-month window . No more specific dates or gameplay details were provided for any of these titles .

Fellowship Entertainment Spin-Off Status

• Embracer announced on May 20, 2026 its intention to spin off Fellowship Entertainment into a separate publicly listed company on Nasdaq Stockholm, with the listing planned for calendar year 2027 .
• Fellowship Entertainment will focus on major IPs including The Lord of the Rings, Tomb Raider, Metro, Dead Island, and Darksiders .
• In Q1, the Fellowship segment saw organic sales decline of 22% and negative Cash EBIT of SEK 32 million, partly due to a tough comparison with the prior-year launch of Kingdom Come: Deliverance II .
• The spin-off plan remains on track; no change to the 2027 timeline was announced in the Q1 report .