Enad Global 7 AB (ENADF) (Q3 2026) Earnings Call Highlights: Record Revenue Growth Offset by ...

This article first appeared on GuruFocus. Release Date: November 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Enad Global 7 AB (ENADF) delivered its strongest quarter in seven quarters, with net revenue growing 39.5% to SEK 496 million and adjusted EBITDA nearly doubling to SEK 126 million, reflecting a 25.4% margin. All major business units contributed strong organic growth: Fireshine net revenue rose 67%, Daybreak grew 50%, and Big Blue Bubble increased 44%, demonstrating broad-based operational strength. The predictable revenue base from live service and back catalog titles grew 11% FX-adjusted year-over-year and 14% on an LTM basis, improving revenue visibility and stability. EverQuest Legends performed well above expectations, contributing SEK 30.4 million in net revenue and adding recurring subscription revenue expected to sustain for years. Operating cash flow more than doubled to SEK 109.6 million, and with SEK 368 million in cash plus unutilized credit facilities, Enad Global 7 AB (ENADF) maintains a solid financial position for future investments. Negative Points Aliens Fireteam Elite 2 missed commercial expectations, resulting in a SEK 362 million non-cash write-down that removes uncertainty but highlights execution risk in mid-sized game investments. Piranha's net revenue declined 26% year-over-year due to release timing differences, with the MechWarrior 5 DLC 9 revenue shifting into Q4 rather than Q3. Petrol's net revenue fell 15% year-over-year as the advertising business in the gaming market remains soft, despite cost optimization lifting margins. Enad Global 7 AB (ENADF) will take a more measured approach to future game investments following the Aliens Fireteam Elite 2 shortfall, potentially slowing new mid-sized project activity. Fireshine's margins are heavily dependent on release schedules and can fluctuate significantly between quarters, creating earnings volatility despite long-term digital mix improvement. Q & A Highlights Warning! GuruFocus has detected 4 Warning Signs with ENADF. Is ENADF fairly valued? Test your thesis with our free DCF calculator.ENADF GF Value chart Q: What specific measures are you taking to improve Aliens Fireteam Elite 2, and what is the timeline? A: CEO Ji Ham said the remaining team's top priority is improving quality, as the game's launch issues were largely due to optimization and quality-of-life problems. The team is making good progress ahead of the Switch 2 release planned for Q1 2027, and promotional pricing will be used in Q4 alongside holiday sales. Further pricing measures in 2027 will depend on performance. Story Continues Q: Given the Aliens Fireteam Elite 2 shortfall, are similar mid-budget projects still relevant, or will you focus on smaller budgets or later-stage projects? A: CEO Ji Ham said EG7 is looking at a range of opportunities, noting Fireshine's success with smaller projects. The company will take a more measured approach to investments going forward, balancing M&A against investment in new products, while still opportunistically considering mid-sized budget games. Q: Do you see potential to expand EverQuest Legends and launch more new games on the EverQuest IP after this success? A: CEO Ji Ham said EverQuest Legends, a very small investment, has exceeded all expectations and should deliver significant profitability this year. As a live service title rather than a one-off box product, it should meaningfully grow the EverQuest franchise revenue base, with only relatively small cannibalization of EverQuest while EverQuest 2 continues to grow. EG7 is exploring additional opportunities around the IP, which it considers Daybreak's most important, but has nothing to announce yet. Q: In which segments will the new USD 6 million prototype investment be made? A: CEO Ji Ham said the investment is in live service games, with smaller, appropriately sized prototypes intended to validate game design and potential opportunity over roughly the next 12 months. Based on progress, EG7 will decide whether to continue investing. Both are premium live service titles, one based on owned IP and the other on a licensed third-party IP. Q: Do you expect Fireshine's 2026 step-up in profitability to remain in coming years with a higher digital mix? A: CEO Ji Ham said Fireshine's overall margin should continue to improve, though it depends heavily on the release schedule. Quarters with new digital titles see front-loaded revenue and higher margins, while quieter quarters see lower margins. Long term, as digital releases become Fireshine's primary revenue source, margins should trend toward the current last-12-month level. Q: What are the new signals for My Singing Monsters, and do you see potential to grow the game further? A: CEO Ji Ham said the biggest upside in 2026 has been the introduction of Club Box early in the year, which significantly improved engagement and monetization. Payer conversion rose meaningfully with that update and has sustained throughout the year, and EG7 expects this to be the new normal, lifting ARPU. The team continues with content updates and is looking to expand the audience into 2027. Q: Why acquire Fair Games instead of just becoming a publisher? A: CEO Ji Ham said EG7 had the opportunity to acquire the studio and asset at a very attractive price. The high-quality title is currently only on PC, and Fireshine has similar genre expertise from Core Keeper, so EG7 sees an arbitrage opportunity to grow the game significantly by bringing it to multiple platforms and broader geographies. Q: You reported a positive tax of SEK 80 million despite the loss, and deferred tax assets rose to SEK 384 million. What does that mean, and can the deferred tax assets be used? A: CFO Frederik Ruden said the positive tax is mainly the deferred tax effect of the Aliens Fireteam Elite 2 impairment. The impairment is tax deductible over time, increasing deferred tax assets, with no cash effect today but reducing future tax payments against taxable profits. Deferred tax assets are only recognized to the extent they are assessed as probable to be used, and this is tested at every reporting date. For the complete transcript of the earnings call, please refer to the full earnings call transcript. View Comments