Embracer shares drop 30% ahead of Coffee Stain spin-off

Shares in Embracer Group have dropped by over 30% ahead of the company spinning off Coffee Stain Group on December 11.

The Swedish firm’s stock price closed at SEK85.49 ($9.15) on Friday, December 5, but opened at SEK57.95 ($6.20) on the morning of Monday, December 8. From that point, shareholders with Embracer Class B stock were unable to receive shares in Coffee Stain Group once that company goes public. By the end of play, Embracer stock was valued at SEK60.00 ($6.42); at the time of writing, the company’s share price is at SEK60.33 ($6.45)

Coffee Stain will start trading on Stockholm’s Nasdaq First North Premier Growth Market on December 11.

Embracer Group announced in May that it planned to spin off Coffee Stain as a standalone company by the end of the year.

“The spin-off represents a significant milestone, as we are streamlining and sharpening the focus of our businesses,” Embracer CEO Phil Rogers said at the company’s last financial results.

“With a powerful combination of strong IPs, engaged communities, and innovative talent, we are highly confident in Coffee Stain’s future as a standalone company.”

In its financial report for the three months ending September 30th, 2025, Coffee Stain Group reported net sales of SEK224 million ($23.96 million)), a 12% decrease year-on-year. The firm’s EBIT was down by 42% to reach SEK44 million ($4.7 million).

In April 2024, Embracer Group announced that it was going to split into three separate entities; Asmodee Group was to focus on board games, while Coffee Stain and Friends’ core business would be indie and mid-tier projects. Finally, Middle-earth Enterprises and Friends was set to concentrate on AAA games.

Coffee Stain and Friends was later rebranded as Coffee Stain Group, while Middle-earth Enterprises has become Fellowship Entertainment.

Asmodee was spun off in February 2025, resulting in a 41.5% dip in Embracer stock.

Now that Coffee Stain Group is set to be spun off, Embracer Group has planned to rebrand as Fellowship Entertainment.

The restructuring and spinning out of Embracer’s various divisions follows a tumultuous few years following the company’s failure to secure a $2 billion investment from Saudi Arabia’s Savvy Games Group. Since then the firm has made thousands of layoffs, closed and divested a number of studios and cancelled game projects – most recently, the company sold Arc Games and Cryptic Studios.

Embracer Group CEO and co-founder Lars Wingefors stepped down earlier this year to be replaced by deputy CEO Phil Rogers. Wingfors remains executive chair of the company’s board.