Fourth quarter, October 1 - December 31, 2025

• Sales amounted to 28,673 (43,264) kSEK.
• Operating profit before depreciation and amortization and shares in associated companies' earnings (EBITDA) amounted to 8,467 (3,637) kSEK, an increase of 133% compared to the same period last year, achieved through stable recurring income from the game sales, collection of milestone payments and maintained cost levels.
• Profit after financial items amounted to 2,338 (-4,395) kSEK, impacted by depreciation of capitalized development costs, which starts already during development.
• EBITDA per share amounted to 0.45 (0.21) SEK.
• Profit per share after financial items amounted to 0.13 (-0.25) SEK.
• Cash and cash equivalents at the end of the quarter amounted to 8,865 (7,364) kSEK.
• Cortopia Studio's most ambitious project to date,Teenage Mutant Ninja Turtles: Empire City, remains on track for release in Spring 2026 and was recently awarded Most Anticipated VR Game of 2026 by multiple trade publications and influencers.

Accumulated, January 1 - December 31, 2025

• Sales amounted to 129,980 (175,834) kSEK.
• Operating profit before depreciation and amortization and shares in associated companies' earnings (EBITDA) amounted to 17,625 (12,582) kSEK, an increase of 40% compared to the same period last year, achieved through stable recurring income from the game sales, collection of milestone payments and maintained cost levels.
• Profit after financial items amounted to -10,412 (-19,386) kSEK, impacted by depreciation of capitalized development costs, which starts already during development.
• EBITDA per share amounted to 0.95 (0.72) SEK.
• Profit per share after financial items amounted to -0.56 (-1.10) SEK

CEO Comments

Margin Discipline Today, Platform Leadership Tomorrow
Over the past several years, we have built a foundation with diversified revenue streams, strengthened studios, expanded the publishing footprint, formed partnerships with major XR hardware manufacturers, and developed globally recognized intellectual property. That work positions us not just to grow, but to lead.

As we move forward, our priority is clear: to improve profitability while positioning the company for the next evolution of immersive computing. We ended 2025 with a strong fourth quarter EBITDA improved by 133% compared to the same period last year. For the full year, EBITDA improved by 40% year-over-year. These gains reflect deliberate margin discipline, improved revenue mix, a sharper allocation of capital toward high-return projects and an ongoing focus to enhance new technology to improve development efficiency. At this time, we view our liquidity position as adequate. With remaining project funding secured for Teenage Mutant Ninja Turtles: Empire City, access to our credit facility, anticipated revenue from the upcoming TMNT release, and cost-saving measures in place, we believe we are positioned to maintain healthy cash levels while executing our roadmap. We are building a company designed for durable profitability, not just short-term expansion. Which will allow us to participate meaningfully in the structural shifts underway in XR.

Building Toward 2026 and Beyond
Cortopia Studios continues to execute at a high level. Teenage Mutant Ninja Turtles: Empire City, the studio's most ambitious project to date, remains on track for release in Spring 2026. We have begun taking pre-orders and are seeing strong community excitement around the title. Empire City was recently awarded Most Anticipated VR Game of 2026 by multiple trade publications and influencers. Most notably, Game Informer, one of the most respected brands in global games media, and a publication that rarely highlights VR titles, included Empire City among its most anticipated upcoming releases. This recognition highlights both the power of the TMNT brand and the execution quality of our studio teams.

At the same time, we are in advanced discussions with major publishers and intellectual property partners regarding future projects and project funding. These conversations reflect the credibility we have built and our ambition to continue working with globally recognized brands. We hope to share further details in the coming quarters.

XR is Evolving
While recent industry headlines have focused on layoffs and volatility within large technology companies, the structural trajectory of XR remains intact. Hardware manufacturers in our category, including Meta and others, continue to invest aggressively in next-generation devices. At the same time, new software releases are achieving record-breaking player engagement levels, demonstrating that consumer appetite for immersive entertainment remains strong. Short-term sentiment fluctuates. Platform adoption, production scale, and engagement trends tell the real story.

Smart Glasses: The Next Form Factor Is Scaling
We are now witnessing the early stages of a major transition within XR from heavier headsets toward lighter, more wearable smart glasses. This shift is not speculative. It is supported by real sales figures and significant planned production increases across the category over the coming years. EssilorLuxottica more than tripled its Meta AI glasses sales during 2025, to 7 million up from 2 million units sold in 2023 and 2024 combined. Multiple hardware manufacturers have publicly signaled expanded manufacturing capacity and increased device rollouts. As these devices move toward mass-market price points and everyday usability, the addressable audience for immersive content expands dramatically.

We view smart glasses as a natural extension of spatial computing; a form factor that will coexist with VR while unlocking new use cases, new audiences, and new distribution models. During the quarter, we engaged in encouraging discussions with hardware partners participating in this emerging segment. While the category is still in its early commercial phase, we believe our experience in immersive interaction design, world-building, and XR-native gameplay positions us well as production scales and consumer adoption accelerates. We intend to help define content standards for this next generation of devices.

Well-Positioned for the Next Cycle
Beyond Frames today is more disciplined operationally and more ambitious strategically. We are strengthening EBITDA, advancing a high-profile 2026 release, and positioning ourselves for the expansion of smart glasses and nextgeneration XR devices. Our objective remains unchanged: to become the global leader in immersive entertainment. 

Thank you to our players, partners, team members, and shareholders for your continued trust as we execute on this vision.

Ace St. Germain,
CEO Beyond Frames Entertainment AB (publ)

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