Asmodee sales rise 36.8% to 551.8 million euros in second quarter
Key Facts
Asmodee reported net sales of 551.8 million euros in the second quarter of fiscal 2026/2027, spanning July to September 2026, up 36.8% year over year. Organic growth was 33.3%, the company said in its interim report, meaning most of the increase came from growth in the business itself. Sales in the year-earlier period were 403.4 million euros, according to the report. Revenue growth coincided with higher adjusted earnings and an improvement in the adjusted EBITDA margin. The company also swung to positive free cash flow during the quarter, compared with a negative flow a year earlier.
Sales growth came across the different publishing channels: sales of games published through Asmodee studios rose 26.5%, while sales of games published through partners increased 42.4%. Board game sales grew 18.4% during the quarter, with sales expanding across geographic regions. Management attributed board game performance to its existing portfolio and new and recent releases, including Azul Kids, LEGO NINJAGO: Destiny’s Bounty Adventures and CATAN: On the Road. A comparison of the publishing channels shows that partner-published games recorded the faster increase. Games published through the company’s studios also posted strong growth, although it was lower than the growth through partners.
Adjusted EBITDA was 113.8 million euros, compared with 76.1 million in the same quarter of the previous fiscal year, and its margin rose to 20.6% from 18.9%. Adjusted operating profit was 105.9 million euros, compared with 68.6 million a year earlier. Adjusted earnings for the quarter rose to 69.3 million euros from 32.0 million, and adjusted earnings per share were 0.29 euros, compared with 0.14 euros. The company reported earnings of 57.6 million euros, after a loss of 6.2 million euros in the comparable period; basic earnings per share were 0.24 euros, compared with a loss of 0.03 euros. Reported operating profit of 94.9 million euros, versus 54.3 million, included items worth 5.1 million euros related to the recovery of customs duties previously paid.
The chief financial officer said higher sales volumes offset increases in the cost of goods, total employee costs and other operating expenses. He added that scalability and cost discipline supported the margin improvement, while a less favorable sales mix had the opposite effect. He said the main driver was “the strong increase in sales volumes, which more than offset the higher cost of goods purchased for resale, employees and other operating expenses.” This explanation places volume growth at the center of the financial improvement, while noting that the sales mix partly limited the margin gain. Free cash flow after income tax and lease payments was 15.4 million euros, compared with negative 24.0 million a year earlier.
For the first half of the fiscal year, spanning April to September 2026, sales were 973.9 million euros, up 29.4%, including organic growth of 27.2%. Adjusted EBITDA for the first half rose to 175.7 million euros from 116.0 million, and its margin increased to 18.0% from 15.4%. Free cash flow after tax and lease payments was 52.9 million euros, compared with 0.7 million euros in the comparable period. The free cash flow conversion ratio to adjusted EBITDA improved to 30.1% from 0.6%. On September 30, 2026, the leverage ratio was 1.5 times, compared with 1.8 times a year earlier; it was 1.7 times after including merger and acquisition liabilities, compared with 2.4 times.
The chief executive said the company was entering the holiday season with a strong release slate and saw growing confidence in continued organic growth across its businesses. He added that management would focus in the coming quarters on maintaining profitability near its target level while continuing to invest to support long-term growth. He said: “Our focus now is on maintaining profitability around that level in the coming quarters, while continuing to reinvest in the business to support long-term growth.” The company had set November 13, 2026, at 7:00 a.m. Central European Time as the date for publishing its interim report, with a results presentation and investor call scheduled for the same day at 9:00 a.m. It reported that no material events occurred during or after the reporting period.