Interim report
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Q4 Q2 Interim report 1 JANUAR Y – 30 JUN E 2026 Second quarter Second quarter . Revenue SEK 5.2 million (43.7) EBITDA1 SEK -1.6 million (-0.4) Adjusted EBITDA1 SEK -1.6 million (1.4) EBIT2 SEK -3.0 million (-57.3) Net profit2 SEK -3.7 million (-46.5) Cash flow from operating activities SEK -1.4 million (-1.2) Diluted earnings per share3 SEK -0.46 (-6.27) Bitcoin purchases BTC 0 (n/a) Total Bitcoin holding at end of period BTC 31.25 (n/a) Recurring revenue share4 52.2 % (n/a) Cash flow from treasury activities SEK 0.9 million (n/a) Revenue SEK 9.0 million (86.0) EBITDA1 SEK -4.9 million (2.1) Adjusted EBITDA1 SEK -4.9 million (0.2) EBIT2 SEK -9.2 million (-75.1) Net profit2 SEK -10.1 million (-64.0) Cash flow from operating activities SEK -9.1 million (-0.9) Diluted earnings per share3 SEK -1.25 (-8.6) Bitcoin purchases BTC 0 (n/a) Total Bitcoin holding at end of period BTC 31.25 (n/a) Recurring revenue share4 64.4 % (n/a) Cash flow from treasury activities SEK 0.9 million (n/a) Strategic KPIs 5 RECURRING REVENUE Revenue from core business operations that generate recurring and scalable cash flows. (1) In 2025, three subsidiaries, which together accounted for the majority of the Group’s revenue, were divested. See pages 5 and 14 for Pro forma 2025. (2) EBIT includes an impairment loss of SEK 1.1 million relating to an uncertain receivable arising from unpaid amortisation on loans issued to the buyers of former subsidiaries Lucky Kat B.V. och WAGMI Ltd. (3) Per total number of shares at the end of the quarter. (4) Share of recurring revenue relative to revenue for the period. (5) For definition of the strategic KPIs see page 14. See page 15 for all events during the quarter. MSEK 2.7 TREASURY Cash flow generated by leveraging Bitcoin (For details, see page 15) MSEK 0.9 COMPANY HOLDINGS Total holdings as per the reporting date BTC 31,25 During the quarter INDIRECT EXPOSURE Share of BTC via holdings in $MSTR 19,24 BTC • New IP introduced – ”Mästarligan” • Swedish CS League returns • Smaller investment in AI company
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2 (16) FRAGBITE GROUP AB (PUBL) | DELÅRSRAPPORT Q2 2026 CEO’s comments Fragbite Group is halfway through 2026, a year in which, in many regards, we are relaunching our business and step by step building solid operations following major changes in 2025. The work continues ahead and long- term profitability is still our guiding principle. Revenue and EBITDA Revenue for the quarter amounted to SEK 5,2 million. On a pro forma basis, business operations are on a par with the same period in 2025 (SEK 5,5 million). The quarter closed with a negative EBITDA of SEK -1.6 million (SEK -0.5 million pro forma for 2025), which is an improvement on the first quarter of 2026 but, of course, not where we want to be. MMA Manager 2 is marching forward As reported in the previous quarter, MMA Manager 2 has shown good profitability for some time, prompting FunRock to further develop the game ahead of a re- release with updated gameplay features which started during the end of the second quarter. The rerelease has thus far targeted chiefly the US market and during May a series of user acquisition (UA) campaigns kicked off. In the short term, this has led to increased costs, which has had a negative impact on EBITDA, however the results so far are cautiously positive with the aim to increase earnings from the game going forward. KovaPlay – continued focus on sales During the period, development was carried out on the project signed in February, and the finished game was shipped in July. With the game due for launch in the client’s iGaming environment shortly, profit share follows for as long as the game remains live, which is expected to contribute to the revenue of business area Gaming from the fourth quarter onwards. Profit share has generated steady income since the end of 2025, prompting us to prioritize it in negotiations for new projects. Unfortunately, KovaPlay has remained adversely affected by delays during this period, which further underlines the importance of prioritising sales with the aim of both expanding and reducing vulnerability to individual projects. Both parent company and subsidiary are placing considerable focus on this. For some time, KovaPlay has been in negotiations with a global iGaming operator which, at the start of the year, were expected to be finalised shortly. At a late stage however, the counterparty – owner of multiple brands for different iGaming platforms – needed to change brands for the project, resulting in negotiations having to largely start over. Overall, delays within KovaPlay have, in various ways, led to the business not yet realising its potential. We are therefore continuing our efforts to reduce vulnerability and broaden the client portfolio. The feedback prospective clients are giving on the games and game engines is very positive and indicates that the offering meets a need in the market. First release based on the new game engine As part of FunRock’s in-house development, work on the previously mentioned new game engine is proceeding as planned. The game engine is of the roguelite genre, and FunRock’s objective is for the engine to be utilised for several different games over the coming years. First up in the pipeline is a free-to-play mobile game, with a planned release in late 2026. Successful premiere for Mästarcupen Revenue for the period has increased approximately 50 percent compared to 2025; however, the business area is still coming in below budget, which has a negative impact on EBITDA for business operations. The full year still looks solid, given sales ahead of the end of the year and the signing of several key contracts during the second quarter, notably for Svenska Cupen. Focusing on diversifying the business has been emphasised previously, and an important step in that direction was taken with Mästarcupen – a new IP featuring competition in EA FC26 (formerly FIFA). The first tournament concept not held in Counter-Strike opens up new target groups both in terms of players and sponsors. Mästarcupen was carried out successfully and with profitably during the end of the second quarter, with plans for a second edition on the drawing table. Focus on cash flow under Bitcoin Treasury Options trading under Bitcoin Treasury commenced on 1 April and generated a cash flow of approximately SEK 0.9 million during the quarter. Proceeds from options trading are recognised under ‘Net financial items’, which is why they do not impact the quarter’s EBITDA but have a positive effect on cash flow. See page 15 for further information on how this is recorded and reported. The Company does not yet have sufficient data to assess future proceeds; these cash flows are expected to fluctuate, but the start is very promising. To sum up, Fragbite Group is staying on course. In line with communicated strategy, we continue to evaluate potential profitable holdings and investments whilst further developing our core business operations. The company’s objective that the business remaining after the divestments in 2025 should be profitable and support the parent company by the end of 2026 remains unchanged. Michael Lundgren, President and CEO
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We are Fragbite Group A Swedish corporate group listed on Nasdaq First North Growth Market Fragbite Group’s oldest subsidiary was founded in 2002, the Group was formed in 2021 when the share was also listed on under the ticker $FRAG. Fragbite Group has three business areas – Gaming, Esports and Bitcoin Treasury – where the core business operations under Gaming and Esports consist of developing games, game engines, game products and esports content for PC and mobile devices. Under Bitcoin Treasury, capital is invested in Bitcoin for the purpose of strengthening the capital structure over the long term. Fragbite Group’s combination of secure, established and growing business operations in Gaming and Esports with an ambitious capital strategy that leverages Bitcoin, gives the Company a unique position among SMEs in the Nordics. Our operations BUSINESS AREA GAMING Subsidiary FunRock develops game engines and games for mobile platforms under their own IPs, focusing on mobile titles with a free-to-play revenue model. Under the brand KovaPlay, FunRock operates a business unit for B2B Game Development, under which custom games on PC and mobile which support retention, are developed for client companies in the iGaming industry. The revenue model has two parts, consisting of fixed remuneration as well as revenue or profit share. BUSINESS AREA ESPORTS Subsidiary Fragbite AB is one of the Nordic region’s largest communities in esports with a business that is based on proprietary IP:s and long experience in marketing through esports and gaming content. Fragbite develops and operates tournament concepts and competitions, operates an ad network and offers media services in gaming and esports under the Config brand. The business area’s largest annual event and IP is the Swedish Cup in Counter-Strike. BUSINESS AREA BITCOIN TREASURY Under Bitcoin Treasury, surplus from the core business and capital from favourable financial solutions is invested in Bitcoin. On the basis of both direct and indirect exposure to Bitcoin, the Company intends to strengthen its capital structure and create shareholder value over the long term. The business area conducts options trading, which generates recurring proceeds by leveraging Bitcoin.
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4 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Financial performance – Group Note: In 2025, three subsidiaries were divested which previously together accounted for the main part of the business operations. This therefore has a significant impact on all comparisons between 2026 and previous financial years. See page 14 for pro forma. Commentary on the development of the business on page 5 is based on pro forma numbers. THE GROUP’S REVENUE Net revenue for the quarter amounted to SEK 5.2 million (43.7), which represents a decrease of SEK 38.5 million compared with the same period in 2025. The decrease compared with 2025 is primarily due to the divestment of subsidiaries; for information on these, see Note 2 on page 15. Pro forma 2025 for the comparable units amounted to SEK 5.5 million. Recurring revenue totalled SEK 2.7 million during the period and SEK 5.8 million during the first half of the year, corresponding to 52.2 percent and 64.4 percent of revenue respectively. EBITDA Operating profit before depreciation and amortisation (EBITDA) for the quarter amounted to SEK -1.6 (-0.4) million; adjusted EBITDA for the quarter also amounted to SEK -1.6 (-0.4) million. EBIT Operating profit (EBIT) for the quarter amounted to SEK -3.0 million (-57.3). During the quarter, the Company was impacted by significant goodwill write-downs as a result of divestments, rendering comparisons difficult. Following the write-down made during the first quarter 2026, there is no longer any goodwill remaining in the Company. As a result of defaulted repayments on the loan issued to the buyers of former subsidiaries Lucky Kat B.V and WAGMI Ltd., the Company has recognised part of the loan and the accrued interest as an uncertain receivable, which has led to a write-down of SEK 1.1 million, negatively impacting EBIT for the second quarter. The Company has engaged legal counsel to pursue the matter against the buyers, 4+Ventures AB and Swiss Peak Ventures GmbH NET FINANCIAL ITEMS Net financial items for the quarter amounted to SEK -0.7 (11.6) million, out of which SEK 0.9 is attributable to proceeds from options trading. See Note 2 on page 15 for information on how options trading is recorded. Net financial items also includes costs relating to interest on share loans and an arrangement fee for the financing solution with Alumni under Bitcoin Treasury. The fee is amortised over the four-year term of the agreement at a monthly cost of SEK 41.7 thousand. PROFIT/LOSS FOR THE PERIOD Profit after tax amounted to SEK -3.7 (-45.7) million for the quarter. Basic earnings per share for the quarter amounted to SEK -0.46 (-6.27). Earnings per share after dilution for the quarter amounted to SEK -0.46 (- 6.27). Earnings per share are calculated based on the number of shares at the end of the quarter. LIQUIDITY AND CASH FLOW Cash flow from operating activities for the quarter amounted to SEK -1.4 (-1.2) million Cash flow from investing activities for the quarter amounted to SEK -0.1 (-6.5) million. Cash flow from financing activities for the quarter amounted to 0 (4.7). The company has not taken out any new loans, made any repayments or carried out any share issues. Cash flow for the quarter amounted to SEK -1.6 (-3.1) million. At the end of the period, the Group’s cash and cash equivalents amounted to SEK 13.8 (4.9) million. FINANCIAL POSITION Equity totalled SEK 56.8 (63.6) million and the equity ratio was 67.5 (64.5) percent as of 30 June 2026. Total assets at the end of the period amounted to SEK 84.1 (98.7) million Full Year SEK thousands 2026 2025 2026 2025 2025 2024 Revenue 5 176 43 723 8 956 85 953 143 853 213 230 Adjusted EBITDA -1 638 -449 0 235 -44 13 275 EBITDA -1 638 1 441 -4 889 2 124 1 882 7 793 EBIT -3 032 -57 323 -9 172 -75 085 -91 363 -141 761 Net profit after tax -3 726 -46 543 -10 074 -63 972 6 801 -128 984 Apr-Jun Jan-Jun
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5 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Development per business area (1) Options trading under Bitcoin Treasury is not included in EBITDA but is recognised under Net financial items. When the Company issues call options it receives a payment – a so-called premium – which directly contributes to the Company’s cash flow. The Company therefore considers it relevant, alongside net financial items, to highlight the cash flow generated, as this demonstrates the actual cash flows that the trading has contributed to the Group during the period. See Note 2 on page 15 for further information on how surpluses from options trading are recorded. . REPORT STRUCTURE Fragbite Group has three business areas – Gaming, Esports and Bitcoin Treasury. To enable easier tracking of the Company’s performance, since the first quarter 2026 our reports include a breakdown of, on the one hand, core business operations (Gaming and Esports) and, on the other hand, Bitcoin Treasury. Bitcoin Treasury has not previously been reported separately as a business area; instead, its costs have been included in the parent company. However, as the business now generates recurring proceeds, the report structure merits an update. As previously, the parent company is separated to enhance transparency. OPERATIONS – BUSINESS AREA GAMING The Gaming business area is on a par with revenue for the same period last year. Revenues primarily come from profit share from games previously launched under KovaPlay, advertising and in-app purchases for MMA Manager 2 and development and customisation fees for the client project signed at the end of February . That project has been shipped and the game is expected to go live on the client’s iGaming platform shortly, after which profit share starts. Further delays in the client project relating to the development of a game based on the Capital War game engine, in combination with slow new business sales, has contributed to KovaPlay not meeting budget for the quarter which has had a negative effect on EBITDA. The rerelease of MMA Manager 2 featuring new functionality took place during the spring, increased UA was started in May and contributes to EBITDA being lower than earlier quarters. The business area also includes some revenue from publishing; see note 4 on page 15. OPERATIONS – BUSINESS AREA ESPORTS The quarter and the first six months show a significant improvement in revenue compared to the same periods in 2025, representing increases of approximately 50 percent and 60 percent respectively. EBITDA, on the other hand, has declined slightly compared with 2025. At the same time, the year has started more strongly compared to 2025 in terms of sales, in particular, sales ahead of Svenska Cupen have progressed very well to date. Svenska CS-Ligan returned for the second year running and was carried out with profitability during the period. The inaugural edition of Mästarcupen in EA FC26 (formerly FIFA), a new IP under Config, was also carried out with profitability. As earlier, the lower number of projects under Config is the main factor driving the negative result, combined with seasonal variations, as the majority of the business area’s revenue-generating activities take place in the fall. Efforts to return the business area to profitability for the full year 2026 are ongoing. PARENT COMPANY The parent company’s revenue amounted to SEK 0 (0.8) million. Revenue consists of management fees charged to the subsidiaries to cover certain group-wide costs and work carried out on behalf of the subsidiaries. These fees are recognised in the respective legal entities but are eliminated in the consolidated SEK thousands 2026 2025 Proforma 2026 2025 Proforma Revenue Gaming & Esports 5 176 4 732 8 956 8 530 Bitcoin Treasury 0 0 0 0 Parent company 0 768 0 2 444 Total 5 176 5 500 8 956 10 973 EBITDA Gaming & Esports -734 737 -2 568 1 013 Bitcoin Treasury (1) 0 0 0 0 Parent company -904 -1 241 -2 321 -1 429 Total -1 638 -504 -4 889 -416 CASH FLOW FROM OPTIONS TRADING Bitcoin Treasury 938 0 938 0 Jan–JunApr–Jun
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6 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 financial statements. The work performed by the parent company during the first quarter of 2025 for subsidiaries that have now been divested, and for which management fees were therefore charged that are no longer eliminated at group level, is included in the 2025 pro forma figures for the parent company. EBITDA for the period, compared with the same period in 2025, demonstrates a reduction in the cost base. BUSINESS AREA BITCOIN TREASURY Options trading off the basis of holdings in Strategy Inc. (“MSTR”) was established in the beginning of the year and April was the first whole month with active trading. During the second quarter approximately SEK 0.9 Million was generated from options trading. See note 2 on page 15 for information on how options trading is recorded. Proceeds from options trading is primarily intended to contribute to the accumulation of BTC and to support the core business operations. Given that options trading has been ongoing for a short period, the Company does not yet have sufficient data to provide a forecast of expected revenue per quarter and year, it is expected to fluctuate. The MSTR investment was made in line with the objective of generating returns by leveraging Bitcoin. Through its holding in MSTR, the Company also has indirect exposure to Bitcoin; per the reporting date, the Company’s holding stands at 19.24 BTC, calculated on the basis of the total number of shares in MSTR on a fully diluted basis. Costs in the first quarter comprise of interest on share loans and the deferred arrangement fee for the Alumni agreement. However, these costs do not impact EBITDA as they are recognised under net financial items. No Bitcoin purchases have been made during the period. The carrying amount of the Company’s total holdings at the end of the quarter was SEK 33.9 million. See note 1 on page 15 for information on how the Company records its Bitcoin holdings. As no purchases have been made since the end of the quarter, the carrying amount of the Company’s total holdings as per the reporting date is also SEK 33.9 million. Holdings Bitcoin June 30, 2026 June 30, 2025 Dec 31, 2025 Total amount BTC 31,25 n/a 31,25 Average purchase price, thousands SEK 1 085 n/a 1 085 Total purchase consideration, thousands SEK 33 891 n/a 33 891 Value of total holdings in BTC, thousands SEK 33 891 n/a 33 891
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7 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Condensed consolidated income statement Full Year SEK thousands 2026 2025 2026 2025 2025 Revenue 5 176 43 723 8 956 85 953 143 853 Capitalised work on own account 147 3 941 302 9 297 11 436 Other operating income 0 -8 0 108 941 Total revenue 5 323 47 655 9 259 95 359 156 230 Cost of goods and services sold -2 035 -28 713 -2 517 -54 571 -94 879 Gross profit 3 287 18 943 6 742 40 789 61 351 Gross margin % 61,8% 39,7% 72,8% 42,8% 39,3% Personnel expenses -3 044 -11 265 -6 281 -22 773 -35 181 Other external expenses -1 881 -6 237 -5 350 -15 891 -24 288 EBITDA -1 638 1 441 -4 889 2 124 1 882 Amortisation and impairment of intangible assets -1 394 -2 589 -2 802 -5 431 -10 574 Depreciation of tangible assets 0 -84 0 -174 -254 Amortisation goodwill 0 -56 091 -1 481 -71 605 -82 417 EBIT -3 032 -57 323 -9 172 -75 085 -91 363 Net financial income from options trading 929 0 929 0 0 Net financial items -1 623 11 645 -1 830 12 708 100 277 Totalt financial items -694 11 645 -901 12 708 100 277 Earnings before tax (EBT) -3 726 -45 678 -10 074 -62 377 8 914 Tax 0 -865 0 -1 595 -2 113 Net profit -3 726 -46 543 -10 074 -63 972 6 801 Other comprehensive income 0 0 0 0 Total comprehensive income -3 726 -46 543 -10 074 -63 972 6 801 Comprehensive income for the period attributable to: Parent company's shareholders -3 726 -45 993 -10 074 -63 149 7 624 Non-controlling interests 0 -550 0 -823 -823 Earnings per share (SEK) -0,46 -6,27 -1,25 -8,60 0,94 Earnings per share after dilution (SEK) -0,46 -6,27 -1,25 -8,60 0,94 Average number of shares outstanding 8 077 044 7 340 223 8 077 044 7 078 584 7 338 202 Average number of shares outstanding diluted 8 077 044 7 340 223 8 077 044 7 078 584 7 338 202 Number of shares before dilution 8 077 044 7 340 223 8 077 044 7 340 223 8 077 044 Number of shares diluted 8 077 044 7 340 223 8 077 044 7 340 223 8 077 044 apr-jun Jan-Jun
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8 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Condensed consolidated statement of financial position SEK thousands Jun 31, 2026 Jun 31, 2025 Dec 31, 2025 ASSETS Fixed assets Capitalized expenditure on development and similar work 9 537 63 384 12 037 Licenses 0 0 0 Cryptocurrency holdings 33 891 0 33 890 Goodwill 0 0 1 481 Tangible assets 0 514 0 Financial assets 19 286 3 355 5 455 Total fixed assets 62 713 67 254 52 863 Current assets Accounts receivable 3 839 7 599 2 342 Current tax receivables 184 1 291 122 Other receivables 76 7 581 70 Prepaid expenses and accrued income 3 576 9 956 1 353 Total current assets 7 674 26 427 3 887 Cash and cash equivalents 13 761 4 981 38 128 Total assets 84 149 98 662 94 878 EQUITY AND LIABILITIES Equity Equity attributable to shareholders 56 764 -1 174 66 838 Non-controlling interests 0 0 0 Total Equity 56 764 63 642 66 838 Provisions Additional purchase price 0 0 0 Deferred tax liabilities 0 2 383 0 Total Provisions 0 1 857 0 Long-term liabilities Liabilities to credit institutions 0 5 724 0 Other long-term liabilities 6 000 0 6 000 Total long-term liabilities 6 000 5 724 6 000 Short-term liabilities Liabilities to credit institutions 0 2 603 0 Overdraft facilities 0 1 594 0 Other financial liabilities 9 38 570 0 Accounts payable 1 216 3 643 942 Current tax liabilities 0 0 0 Other current liabilities 14 381 17 274 15 076 Accrued expenses and deferred income 5 780 28 046 6 023 Total short-term liabilities 21 385 91 729 22 041 Total equity and liabilities 84 149 98 662 94 878
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9 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Condensed consolidated statement of changes in equity SEK thousands Share capital Premium Fund Retained earnings Result for the period Equity attributable to shareholders of the Parent Company Equity attributable to Non-controlling interests Total Equity OPENING BALANCE 01/01/2025 3 392 447 290 -240 806 -128 984 80 892 0 80 892 Changes in equity during the period 01/01/2025 - 31/12/2025 Net result for the reporting period 7 624 7 624 -823 6 801 New share issue paid 647 9 910 10 557 - 10 557 New share issue costs -310 -310 - -310 Translation difference -5 067 -5 067 - -5 067 Transactions with minority interest -26 859 -26 859 823 -26 036 Disposition according to decision by the AGM -128 984 128 984 0 - 0 CLOSING BALANCE 31/12/2025 4 039 456 891 -401 715 7 624 66 838 0 66 838 OPENING BALANCE 01/01/2026 4 039 456 891 -401 715 7 624 66 838 0 66 838 Changes in equity during the period 01/01/2026 - 31/3/2026 Net result for the reporting period -10 074 -10 074 0 -10 074 New share issue paid 0 - 0 New share issue costs 0 - 0 Translation difference 0 - 0 Transactions with minority interest 0 0 0 Disposition according to decision by the AGM 7 624 -7 624 0 - 0 CLOSING BALANCE 31/6/2026 4 039 456 891 -394 091 -10 074 56 764 0 56 764
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10 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Condensed consolidated cash flow statement Full Year SEK thousands 2026 2025 2026 2025 2025 Operating income -3 032 -57 323 -9 172 -75 085 -91 363 Non-cash items Depreciation, amortisation and impairment 1 394 58 764 4 283 77 209 93 245 Other 0 0 0 0 Financial items -97 -1 665 -2 252 -2 467 -4 884 Options trading 938 0 938 0 Tax paid -45 -1 082 -62 1 676 1 005 Cash flow from operating activities before changes in working capital -842 -1 306 -6 265 1 333 -1 996 Change in accounts receivable -1 497 -1 569 -1 497 -2 552 -177 Change in other receivables -743 1 086 -454 5 783 -6 525 Change in accounts payable -244 3 689 -245 1 996 6 207 Change in other liabilities 1 916 -3 085 -603 -5 671 1 178 Cash flow from changes in working capital -568 120 -2 799 -444 682 Cash flow from operating activities -1 410 -1 186 -9 064 889 -1 314 Investment in subsidiaries 0 0 0 -3 023 -3 023 Investment in minority holding 0 0 -15 001 -2 747 Divestment of subsidiaries 0 2 234 0 2 234 99 376 Capitalised work on own account -147 -3 941 -302 -9 297 -11 436 Acquisition of intangible and tangible fixed assets 0 -1 794 0 -3 012 -39 730 Disposal of intangible and tangible fixed assets 0 0 0 1 253 4 041 Change in long-term receivables 0 -3 048 0 -3 048 -2 793 Deposit paid 0 0 0 -2 -2 Deposit repaid 0 0 0 0 0 Cash flow from investing activities -147 -6 549 -15 303 -14 896 43 687 New share issue 0 -155 0 3 546 10 248 New borrowings 0 25 000 0 30 000 41 000 Change in overdraft limit 0 -7 369 0 -7 204 -8 798 Change in other financial liabilities 0 -1 983 0 -4 333 -42 453 Repayment of liabilities to credit institutions 0 -10 838 0 -11 496 -12 376 Cash flow from financing activities 0 4 655 0 10 514 -12 379 Cash flow -1 557 -3 079 -24 367 -3 493 29 993 Cash and cash equivalents at beginning of period 15 318 8 267 38 128 9 407 9 407 Cash flow for the period -1 557 -3 079 -24 367 -3 493 29 993 Exchange difference in cash and cash equivalents 0 -206 0 -934 -1 273 Cash and cash equivalents at end of period 13 761 4 981 13 761 4 981 38 128 Apr-Jun Jan-Jun
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11 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Condensed Parent Company income statement Full Year SEK thousands 2026 2025 2026 2025 2025 Revenue 301 1 067 559 2 937 4 409 Other revenue 0 31 0 31 0 Total revenue 301 1 098 559 2 968 4 409 Personnel expenses -509 -1 161 -1 292 -2 345 -4 414 Other external expenses -576 -851 -1 349 -1 475 -3 755 EBITDA -784 -914 -2 081 -851 -3 760 Profit from participations in Group companies 0 0 0 0 33 813 Impairments of financial fixed assets -1 366 -44 625 -1 366 -44 625 -52 844 Net financial income from options trading 929 0 929 0 Net financial items -165 -2 293 -251 -1 814 -4 230 Totalt financial items 764 -2 293 678 -1 814 -4 230 Earnings before tax (EBT) -1 387 -47 832 -2 770 -47 290 -27 022 Tax 0 0 0 Net profit -1 387 -47 832 -2 770 -47 290 -27 022 Apr-Jun Jan-Jun
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12 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Condensed Parent Company statement of financial position SEK thousands Mar 31, 2026 Mar 31, 2026 Dec 31, 2026 ASSETS Fixed assets Cryptocurrency holdings 33 891 0 33 890 Shares in Group companies 58 163 359 629 54 428 Receivables from Group companies 9 452 17 900 8 750 Minority holding 17 748 0 2 747 Financial assets 1 297 255 2 495 Total fixed assets 120 549 377 784 102 310 Current assets Receivables from Group companies 239 1 732 337 Current tax receivables 76 117 57 Other receivables 8 10 012 0 Prepaid expenses and accrued income 2 023 710 647 Total current assets 2 346 12 570 1 041 Cash and cash equivalents 9 073 526 32 061 Total assets 131 968 390 880 135 412 EQUITY AND LIABILITIES Equity 112 740 240 483 115 510 Provisions 0 13 692 0 Long-term liabilities Liabilities to Group companies 0 74 306 0 Other long-term liabilities 6 000 0 6 000 Total long-term liabilities 6 000 74 306 6 000 Short-term liabilities Liabilities to credit institutions 0 15 508 0 Other finansial liabilities 9 39 503 0 Accounts payable 58 357 166 Liabilities to Group companies 0 2 205 0 Current tax liabilities 0 0 0 Other liabilities 10 810 1 668 10 999 Accrued expenses and deferred income 2 351 3 157 2 737 Total short-term liabilities 13 227 62 399 13 901 Total equity and liabilities 131 968 390 880 135 412
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13 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Pro forma – Condensed income statement Note: The parent company’s pro forma revenue for the second quarter of 2025 includes an item of SEK 0.8 million relating to management fees charged to the subsidiaries to cover certain group-wide costs and work carried out on behalf of the subsidiaries. These fees are recognised in the respective legal entities but are eliminated in the consolidated financial statements. The work performed by the parent company during the first and second quarters of 2025 for subsidiaries that have now been divested, and for which management fees were therefore charged that are no longer eliminated at group level, is included in the 2025 pro forma figures for the parent company.
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14 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Strategic KPI:s In the interim report for the first quarter new strategic KPIs were implemented. They are intended to reflect the Company’s long-term strategy and provide shareholders with a better basis for comparing performance quarter by quarter. Revenue mix Fragbite Group has three types of revenues: 1) Recurring, 2) Project and 3) Treasury RECURRING REVENUE Revenue from operating activities that generate recurring, reliable and scalable cash flows over time. Includes both contracted revenue, such as long-term game maintenance fees or profit and revenue sharing under KovaPlay, and revenue that is of a recurrin g nature, such as advertising and in-app purchases from FunRock’s mobile games, or revenue from well-established IPs such as Svenska Cupen. The Company’s objective is to increase recurring revenue over time, both in absolute terms and relative to project revenue, in order to increase the predictability of the business and improve operating profit and margins by leveraging scalability. PROJECT REVENUE Revenue from operating activities that is not certain to recur, such as fixed development fees under KovaPlay, services under Config, or concepts under Fragbite AB that are not yet well established. During the period recurring revenues amounted to SEK 2,7 million which corresponds to a share of revenue of 52.2 percent. TREASURY CASH FLOW Recurring cash flow generated by leveraging Bitcoin. Currently generated through options trading involving holdings in Strategy Inc. (“MSTR”), the Company is also exploring other opportunities. Exposure to Bitcoin COMPANY HOLDINGS The Company’s own Bitcoin holdings on the balance sheet as per the reporting date. The aim is to gradually increase these holdings. INDIRECT EXPOSURE The Company's share of MSTR’s total Bitcoin holdings via its shareholding. Based on MSTR’s holdings as per the reporting date and calculated on the total number of MSTR shares on a fully diluted basis. The objective is to also increase indirect exposure to Bitcoin in different ways over time.
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15 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Notes 1. RECORDING AND VALUATION OF BITCOIN As other cryptocurrency holdings, Bitcoin is recognised as an intangible asset. The Company’s holdings of Bitcoin and other cryptocurrencies are accounted for as intangible assets and measured at cost, less any impairment. The asset is not subject to amortisation nor measured at fair value at the end of the reporting period but may be subject to impairment if a change in the value of the relevant currency is considered permanent. The Company carries out impairment testing of its Bitcoin holdings in connection with each quarterly and annual closing of the accounts. In the case of divestment, valuation is based on the First-in, First-out principle The Company has assessed that the decline in the price of Bitcoin since the holding was acquired cannot be considered permanent and has therefore not impaired the book value in the impairment test carried out in connection with the closing of the accounts for the second quarter 2026. 2. RECORDING OF PROCEEDS FROM OPTIONS TRADING Since May 2026, the Bitcoin Treasury business area has carried out options trading using the Company’s holding in Strategy Inc. (“MSTR”). Through its investment in MSTR, the Company capitalises on the volatility of the share to sell call options. Call options are issued through so-called ‘covered calls’, a well-established options strategy whereby the Company sells call options on MSTR shares and receives a payment, known as a premium, in return. When the premium is received, it represents a direct contribution to the Company’s cash flow. The Company’s main strategy is based on taking advantage of trading opportunities when market conditions are favourable to the Company, and on rolling the options forward as far as possible – that is, pricing them in a risk-averse manner so that they only trigger the sale of the underlying share in exceptional circumstances. In the event that it is advantageous to dispose of the underlying shares, the Company will promptly make a new investment to restore its shareholding in MSTR. As options are issued on an ongoing basis, on the last day of a quarter there will almost certainly always be a cash flow from options trading, the majority of which has been realised, whilst a smaller portion relates to options that are still outstanding. For those options still outstanding in the market on the last day of the period, the premium has been paid to the Company, but the options have not yet expired and may therefore potentially be called away, i.e. the share price movement triggers the option’s strike price and the Company is required to sell the shares. For this reason, the accounting under ‘Net financial items’ is structured such that the proceeds generated by trading during the period, under the item Net financial items from options trading (which corresponds to the cash flow generated) also includes a positive or negative profit or loss item resulting from how the options still outstanding on the last day of the period are valued in the balance sheet, where they are recognised as a liability until they expire. In cases where an option is called away, this may therefore, in certain instances, have a negative impact on cash flow in the following period. However, as the Company pursues a risk-averse strategy, it is unlikely that this will occur other than in rare circumstances. 3. DIVESTMENTS DURING 2025 On 8 October, the Company signed an agreement to divest subsidiary Playdigious, information about the transaction can be found in the interim report for the third quarter 2025. On 31 May 2025, the Company signed two agreements to sell its shares in subsidiaries Lucky Kat B.V. (”Lucky Kat”) and WAGMI Ltd. (”Wagmi”), information about the transactions can be found in the interim report for the second quarter 2025. Under the agreement, the responsibility for registering the transfer of the shares in the Netherlands and Gibraltar, respectively, for the target companies lay with the buyers, 4+ventures AB and Swiss Peak Ventures GmbH. Given that representatives of the buyers have not yet completed the registration process relating to Wagmi, and have defaulted on payment to advisors in Gibraltar, the Company has engaged legal counsel to pursue completion in accordance with the agreement against the owners of 4+ventures AB and Swiss Peak Ventures GmbH. 4. REVENUES FROM PUBLISHING Upon the divestment of the previously wholly-owned subsidiary Playdigious on 8 November 2025, it was stipulated that 90 percent of the net revenue from four PC games under publishing agreements would henceforth accrue to the Company. These games include Fretless: The Wrath of Riffson, Linkito and Crown Gambit. Revenue from the publishing of these games is included in the Gaming business area. The agreement also included The Almost Gone, but the publishing rights to the game reverted to the IP owner in the spring of 2026 in accordance with the publishing agreement. Siginficant events during the quarter • Fragbite AB is bringing back the Swedish CS League, after its successful introduction in 2025. Unibet joins as title sponsor. • Config launches a new IP – Mästarcupen, an esports competition played in the football game EA FC26 (formerly FIFA). The title sponsor will be the global brand ALE. Media partner will be Expressen/Bonnier. • The Swedish Cup, Sweden’s largest national esports tournament, returns in fall 2026 for the fifth year running. POWER, the leading Nordic electronics retailer, is this year’s title sponsor. • The Company makes a smaller strategic investment of 250 000 SEK for a 24.5 percent share in a Swedish growth company in AI. The company has not reported any significant events since the end of the quarter.
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16 (16) FRAGBITE GROUP AB (PUBL) | INTERIM REPORT Q2 2026 Declaration by the Board of Directors The Board of Directors and the CEO of Fragbite Group AB (publ) hereby certify that this interim report provides a true and fair overview of the operations, financial position and performance of the Group and Parent Company. Stockholm 26 August 2026 Niclas Bergkvist Michael Lundgren Chairman CEO and Board Member Stefan Tengvall Mikael A. Pettersson Board Member Board Member This interim report has not been reviewed by the Company's auditors. Contact For further information contact: Erika Mattsson Chief Communications Officer em@fragbitegroup.com Telefon: +46 722 35 74 46 Certified Adviser: Redeye Nordic Growth AB Website: www.fragbitegroup.com Address: Fragbite Group AB Norrtullsgatan 6 113 29 Stockholm Corp ID: 556990-2777 Financial calendar Interim report for the third quarter 2026: 11 November 2026 Year-End Report 2026: 18 February 2027