Embracer Group experienced a significant stock price decline, over 30%, in anticipation of the Coffee Stain Group’s spin-off, scheduled for December 11.
On Friday, December 5, the Swedish company’s stock closed at SEK85.49 ($9.15). By Monday morning, December 8, it opened at SEK57.95 ($6.20). This drop meant that holders of Embracer Class B stock would not receive shares in Coffee Stain Group upon its public listing. The stock price settled at SEK60.00 ($6.42) by the end of the day, and was around SEK60.33 ($6.45) at the time of writing.
Coffee Stain is slated to begin trading on Stockholm’s Nasdaq First North Premier Growth Market on December 11.
Embracer Group had previously announced its intention to spin off Coffee Stain as an independent company by the end of the year.
Phil Rogers, Embracer’s CEO, stated during the company’s last financial results that the spin-off marked a crucial step in streamlining and sharpening business focus. He expressed strong confidence in Coffee Stain’s future as a standalone entity, citing its powerful combination of strong IPs, engaged communities, and innovative talent.
According to its financial report for the quarter ending September 30, 2025, Coffee Stain Group reported net sales of SEK224 million ($23.96 million), a 12% decrease year-on-year. The firm’s EBIT also saw a significant drop of 42%, reaching SEK44 million ($4.7 million).
In April 2024, Embracer Group revealed plans to divide into three distinct entities. Asmodee Group was designated to focus on board games, while Coffee Stain and Friends would manage indie and mid-tier projects. Middle-earth Enterprises and Friends was intended to concentrate on AAA games.
Subsequently, Coffee Stain and Friends was rebranded as Coffee Stain Group, and Middle-earth Enterprises became Fellowship Entertainment.
Asmodee’s spin-off in February 2025 previously led to a 41.5% decrease in Embracer’s stock value.
With Coffee Stain Group now set to become independent, Embracer Group plans to rebrand itself as Fellowship Entertainment.
This extensive restructuring and the spinning out of various divisions follow a challenging period for Embracer. This era began after the company failed to secure a $2 billion investment from Saudi Arabia’s Savvy Games Group. Since then, the firm has implemented thousands of layoffs, closed or divested numerous studios, and canceled several game projects. Most recently, the company sold Arc Games and Cryptic Studios.
Earlier this year, Embracer Group’s co-founder and CEO, Lars Wingefors, stepped down from his role. Deputy CEO Phil Rogers assumed the CEO position, while Wingefors remains the executive chair of the company’s board.
