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Q3 2025 Report 2 3 O C T O B E R 2 0 2 5
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2 N E T S A L E S +16% Q3 Highlights Continued strong growth in Q3 driven by our strategic initiatives and increased end consumer demand. Net sales in Q3 was 181 SEKm (157), an increase of 16%, +27% organically. Very strong sales in EMEA and high demand for newly launched Scape gaming - headset. Sales out revenue increased by 34%. Sales channel inventory level at balanced level. Internal stock levels higher YoY. EBITDA increased to 14 SEKm (12), with an EBITDA margin of 7.6% (7.4) and a product margin of 39.0% (37.8). Strong focus on improving margins going forward. Strong net cash position of 36 SEKm (30) at end of quarter. Epoch launched in the quarter which has received great reviews.
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3 Launch of PC Case Epoch Scandinavian design meets performance engineering in Fractal Epoch, launched July 9. Minimalist Scandinavian aesthetics blends with airflow -optimized engineering, featuring mesh front/top panels and new Momentum 12 fans for exceptional cooling. Early reviews praise design and performance, commending strong thermals, quiet operation, and flexible layouts; Epoch delivers top -tier airflow and low noise, reinforcing Fractal’s reputation for elegant, performance -driven design. Epoch appeals to design-conscious gamers and enthusiasts and is available in solid, tempered glass, and RGB versions (black or white), priced $109 –$129, Epoch Elegant airflow Experience Gaming
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Market Development & Trends 4 S T E L L A R B L A D E The Next-Generation Gaming Experience: A key driver for the PC market Global PC shipments continue to grow, projected to rise 4.1% in 2025, surpassing 2021’s peak as Windows 11 upgrades and aging systems drive refresh demand. Budget GPUs from Nvidia and AMD deliver next-gen performance at affordable prices and stable supply, fueling renewed upgrade activity. Game launches drive hardware demand as major Q3 releases like Borderlands 4 and Stellar Blade PC push hardware limits. PC holds strong in global games market as the global games market will reach $188.8B in 2025 (+3.4%), with PC gaming at $39.9B (+2.5%). Strong double-digit growth for gaming chairs ($1.6B) and Headsets ($2.7–3.0B) markets. Community engagement is at record highs with Discord exceeding 200M MAUs (+30% since 2023).
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Q3 2025 marks another strong quarter, with net sales increasing 15.8% YoY to 181.4 SEKm and organic growth in USD at 26.7%. All three quarters this year showed higher sales vs last year, making the January–September period the strongest in Fractal’s history in terms of organic net sales. • New graphics card launches further boosted PC component demand. • Growth driven by demand for core products and a broader portfolio. • Successful launches, including the Scape gaming headset. • Weaker USD (9.5 vs 10.4) impacted SEK sales. Net sales USDm 17,6 15,1 20,2 0 5 10 15 20 25 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Net sales, SEKm SEKm 189,9 156,6 181,4 0 50 100 150 200 250 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Sales out, USDm 5 Net sales growth: +15.8% | Organic growth in USD: +26.7% | Sales-out: +33.9%
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The Other category grew 91.9% year-on-year to 27.7 million SEK, driven primarily by the Scape gaming headset and the Refine gaming chair. In total, this category accounted for 15.3% of net sales, up 6.1 pp from last year. Sales of cases reached 153.7 SEKm (142.2), up 8.1% YoY. Cases accounted for 84.7% of total net sales, as new product categories gained share. EMEA delivered the strongest growth, up 35.0% YoY, driven by solid demand and successful new product launches. The region’s share of total revenue increased to 59.2%, up 8.4 pp YoY. Sales out surged 56%. The Americas totaled 50.3 SEKm, down 11.9% YoY. Import tariffs and currency effects led to price adjustments during the quarter, which helped offset costs but temporarily softened demand. Lower discounts compared to last year supported margins but weighed slightly on sales volumes. The region’s share of total revenue declined to 27.7%. Demand continued on a high level with sales out up 14%. APAC delivered a growth of 18.8% YoY, and the region remains a stable contributor with good momentum across core sales channels. Segment and Regional development Business Segment Cases Other Total Q3 Q3 Q3 SEKm 2025 2024 2025 2024 2025 2024 Geographic market EMEA 91,5 72,0 15,9 7,5 107,3 79,5 Americas 43,1 54,4 7,2 2,7 50,3 57,1 APAC 19,1 15,8 4,7 4,2 23,8 20,0 Total net sales 153,7 142,2 27,7 14,5 181,4 156,6 Americas 28% EMEA 59% APAC 13% 6 Cases 85% Other 15%
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Product profit increased to 70.7 SEKm (59.1), corresponding to a margin of 39.0 % (37.8 %).Margin improved despite tariff headwinds, driven by lower discounts and a stronger product mix. Main margin drivers: • Lower sales discounts: +3.5 pp • Product mix: higher-margin cases +0.9 pp • Tariffs: –2.0 pp • FX & Freight: minor negative effects (–0.5 pp and –0.6 pp) Product margin Product margin(%) 41,8% 37,8% 39,0% 0,0% 10,0% 20,0% 30,0% 40,0% Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 37,8% 0,9% 3,5% -0,6% -0,5% -2,0% 39,0% Margin Q3 2024 Product mix Sales discounts Freight FX effect Tariffs Margin Q3 2025 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 7
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EBITDA increased to 13.7 SEKm (11.6), with a margin of 7.6 % (7.4). Improvement driven by higher sales and product profitability. Operating expenses were temporarily elevated, mainly reflecting strategic inventory management in the US ahead of potential tariff increases. These effects are temporary and expected to normalize over time. Operating cash flow amounted to –28.0 SEKm (14.8), mainly reflecting inventory purchases made in Q2 with long payment terms. Cash flow is expected to improve as inventories decline. Net cash strengthened to 36.4 SEKm (29.8), providing continued liquidity and flexibility for future investments and growth. Earnings and Cash flow EBITDA (SEKm) and margin (%) 18,5% 7,4% 7,6% 0 5 10 15 20 25 30 35 40 45 50 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q3 Jan—Sep Oct—Sep Full year SEKm 2025 2024 2025 2024 24/25 2024 EBITDA 13,7 11,6 70,8 54,9 99,9 84,0 Change in NWC -34,9 7,0 0,3 0,4 6,2 6,3 Net tangible and intangible expenditure -6,8 -3,8 -20,8 -13,3 -38,6 -31,0 Operating cash flow -28,0 14,8 50,3 42,0 67,5 59,2 Cash conversion % -204% 127% 71% 76% 68% 70% 8
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Income statement Total revenue in Q3 amounted to 183.1 million SEK, an increase of 15% year-on-year. Goods for resale as a share of sales improved slightly year-on-year, supported by a favorable product mix, while higher import tariffs had a negative impact. Other external expenses increased versus last year, primarily reflecting warehouse and logistics costs linked to higher inventory levels following the strategic build-up in the US. Personnel expenses rose, driven by strategic hires and annual salary adjustments to support Fractal’s long-term growth. Net financials were positively affected by the USD/SEK exchange rate, while interest expenses remained low thanks to the company’s net cash position. Oct—Sep Full year SEKm 2025 2024 2025 2024 24/25 2024 Net sales 181,4 156,6 622,8 492,7 827,9 697,9 Capitalized development expenditure 2,7 2,6 9,5 8,9 14,3 13,6 Other operating income -1,0 0,0 1,5 0,6 1,5 0,6 Total revenue 183,1 159,2 633,7 502,2 843,7 712,2 Operating expenses Goods for resale -110,7 -98,7 -384,1 -293,4 -508,4 -417,8 Other external expenses -32,2 -26,4 -99,0 -82,3 -129,9 -113,2 Personnel expenses -26,5 -22,5 -79,8 -71,6 -105,5 -97,3 Depreciation and impairment of tangible and intangible non-current assets -7,2 -5,9 -20,6 -17,7 -28,3 -25,4 Total operating expenses -176,6 -153,5 -583,6 -465,0 -772,2 -653,6 Operating profit 6,6 5,7 50,2 37,2 71,5 58,6 Finance income 1,0 0,0 - 0,0 4,2 4,2 Finance costs - -4,8 -7,7 -3,2 -7,0 -2,4 Profit/loss after financial items 7,6 0,9 42,5 34,1 68,8 60,4 Income tax expense -1,7 -0,4 -9,3 -7,7 -15,4 -13,8 Deferred tax liabilities 0,3 0,1 0,4 0,2 1,3 1,1 Profit for the period 6,2 0,6 33,6 26,5 54,7 47,7 Q3 Jan—Sep 9
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• Continued strong growth in Q3 with sales at high and stable level. • Net sales increased by 16%, organic growth was 27% and sales out from tracked partners grew by 34%. • Very strong performance in EMEA. High demand for Scape gaming-headset. • EBITDA margin of 7.6% (7.4) and a product margin of 39.0% (37.8), with positive impact from lower sales discounts and product mix which offset effects of tariffs and FX. • Launch of new Epoch case in the quarter which received very positive reviews. • The underlying market for our products remains strong, supported by the launch of key PC components and new game titles. • We expect the ongoing upgrade cycle to extend into 2026. • Fractal is well prepared for the final quarter of the year where we face high comparison figures from Q4 2024. • Strong financial position allows us to pursue our strategic initiatives and further advance our position in the market. • Uncertainty about global business environment, and US tariffs, remains. Strong focus on mitigating increased costs from tariffs, freight rates and currency effects, including active price management and review of supply chain to increase cost efficiency and flexibility. 10 Summary Q 3 2 0 2 5
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Q & A