Fractal Gaming Group AB (FRACTL) posted a 65.3% year-over-year decline in net sales for the second quarter of 2026, with revenue falling to SEK 74.7 million ($8.0 million) from SEK 215.4 million ($22.3 million) in the same period a year earlier.
The Swedish gaming accessories manufacturer attributed the decline to inventory normalization across its distribution network and weaker demand for premium products, despite reporting a 28.2% drop in sales to end consumers. Organic sales fell 64.3%, though the company noted stabilized monthly sales of roughly $4 million since February, with a seasonal boost in June and July tied to Prime Day promotions.
Product margins improved to 39.2% from 35.6% a year ago, driven by currency effects, lower freight and tariff costs, and a favorable product mix. However, EBITDA turned negative at SEK -23.4 million, compared with a positive SEK 19.8 million in Q2 2025, reflecting the revenue decline and restructuring costs totaling SEK 3.1 million.
The company’s cash position strengthened, with a net cash balance of SEK 18 million at quarter-end, up from SEK 13.9 million at the end of Q1. Operating cash flow stood at SEK 3.8 million, while net working capital contributed SEK 38.2 million through reductions in inventory and receivables.
Regionally, the Americas accounted for 49% of net sales, up from 35% a year earlier, as the company achieved balanced inventory levels. EMEA’s share fell to 37%, with excess inventory persisting into Q2, while APAC remained steady at 14%. The Cases category, which represents 79% of total sales, saw a 69% year-over-year decline, while other categories such as gaming chairs and headsets declined by 32%.
Management guided toward a 20% reduction in the fixed operating cost base by 2027 compared to 2025 levels and expects a $2.5 million refund from previously imposed U.S. tariffs in the second half of 2026. The company also highlighted the launch of its Pop 2 Vision case, its first full-vision model priced below $100, and the Dynamic 3 cooling fan range as part of its product pipeline.
Shares of Fractal Gaming Group traded at $14.06, down 3.43% on the day, with a 52-week range of $1.26 to $4.41 and a market capitalization of $44.6 million. The stock has declined 63% over the past year and 51% year-to-date, reflecting broader investor concerns over the company’s near-term prospects despite its premium positioning in the PC gaming market.
