Is Coffee Stain Studios profitable in 2026?

Yes but barely: Coffee Stain Group's FY25/26 net income was SEK 11 million, down about 94% year over year, on trailing 12-month net sales of SEK 961 million, down 11.8% YoY, as of 2026-06-30, per stockanalysis.com.

Who owns Coffee Stain Studios now?

Coffee Stain Group AB is independent since 11 December 2025, spun off from Embracer Group (renamed Fellowship Entertainment) and listed on Nasdaq First North Premier Growth Market Stockholm under ticker COFFEE B, with co-founder Anton Westbergh as CEO.

Could AI replace Coffee Stain Studios' games?

Unlikely directly. Coffee Stain's moat is beloved IP (Satisfactory, Valheim, Deep Rock Galactic) with multi-year community trust built through early access, not something generative AI replicates; AI mainly lowers rivals' production costs, an industry-wide tailwind, not a replacement threat, as of mid-2026.

What is Coffee Stain Studios' biggest competitor?

In the automation-sim genre, Wube Software's Factorio is the closest rival, though Wube announced Factorio 2.1 as its final major update in June 2026. Valheim also competes with Palworld and Grounded in survival-crafting.

Why did Coffee Stain Group's stock fall after its 2025 listing?

Coffee Stain Group's market cap fell about 21%, from roughly SEK 5.02 billion at its December 2025 Stockholm listing to about SEK 3.95 billion by July 2026, amid declining core revenue and a 94% net income drop for FY25/26.

Will Valheim's 1.0 launch save Coffee Stain's revenue?

Unconfirmed. Valheim exits Early Access into 1.0 on 9 September 2026 across PC, PS5, Xbox, and Switch 2 with the Deep North update, a major catalyst given its large existing install base, but conversion results won't be known until after launch.

Gaming companies · Sweden

Coffee Stain Studios

coffeestainstudios.com ↗

Swedish game studio group behind Satisfactory, Deep Rock Galactic, and Valheim.

Defensible for now

Assessed 23 July 2026 · Evidence as of 23 July 2026

Real protection, with named pressure against it.

On the recordSince 23 July 2026 · Checkable from 9 September 2026 · Every call on the record Checkpoint: Valheim 1.0 launch and console release

The call

A cash-rich, debt-free studio group with real hit franchises, now facing falling revenue, a closed studio, and departing talent as Valheim's launch approaches.

Coffee Stain Studios makes games like Satisfactory and Deep Rock Galactic that have built loyal fanbases over years of updates and community engagement. These games are hard to replace because the community has invested time in them, but it is not impossible: other studios regularly release competing games in the same genres (like Palworld and Helldivers), and the company's revenue fell 11% in the last year while profit nearly disappeared, a studio was closed, and experienced staff are leaving for other companies. The big question is whether Valheim, their other major game, can attract paying players on PlayStation and Xbox in September 2026, which could prove the company still has the spark to create hits.

Why

AI pressure: None apparent. AI tools speed up asset and code work for their small teams, but no AI product replaces owned game worlds and player communities. Could AI do the core job? Unlikely.

Bigger players: Embracer Group / Fellowship Entertainment. Former parent now competes as a peer for Nordic talent, licensing deals, and shelf space, with overlapping studio relationships. Could a giant copy it? Yes, easily.

What protects it. Owned franchises with years of player loyalty and live engagement, plus SEK 500M net cash and no debt to ride out weak years.

What would change this call

Valheim 1.0 sales and player conversion on PS5/Xbox/Switch 2 after September 9, 2026 launch. Shows whether the flagship franchise can still convert its fanbase into new revenue.
Q1 FY26/27 earnings release around August 5, 2026. Reveals whether revenue decline and profit collapse continued post-listing.
Any additional studio closures or senior staff departures beyond Malmo and Serpent's Gaze within 12 months. Would indicate restructuring is spreading rather than isolated.

Key numbers

Revenue down 11.8% YoY to SEK 961M (2026-06-30)
Net income fell 94% to SEK 11M (2026-06-30)
Stock down 21% since Dec 2025 listing (2026-07-01)

Named risks

Core revenue declined 11.8% YoY with net income down 94% in FY25/26. Severity: high
Studio closure (Malmo, April 2026) and veteran talent departures signal internal instability. Severity: medium
Stock down 21% since December 2025 listing, indicating investor confidence erosion. Severity: medium
Hit-driven, cyclical business dependent on Valheim 1.0 success in a crowded genre. Severity: high
No structural moat against AAA publishers or indies copying survival/automation genres. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Wube Software (Factorio)	contesting	Factorio 2.1 announced as final major update June 2026, opening space in automation-sim genre
Palworld / Pocketpair	contesting	Competes with Valheim in survival-crafting genre ahead of Valheim 1.0 launch Sept 2026
Serpent's Gaze (ex-Coffee Stain founders)	losing to	Veteran talent departed to found rival co-op soulslike studio, announced July 2026
Fellowship Entertainment (former parent Embracer)	contesting	Overlapping Nordic development and licensing relationships since May 2025 spin-off
Klei Entertainment	contesting	Comparable indie studio in colony-sim/automation-adjacent genre space

Questions people ask

Is Coffee Stain Studios profitable in 2026?: Yes but barely: Coffee Stain Group's FY25/26 net income was SEK 11 million, down about 94% year over year, on trailing 12-month net sales of SEK 961 million, down 11.8% YoY, as of 2026-06-30, per stockanalysis.com.
Who owns Coffee Stain Studios now?: Coffee Stain Group AB is independent since 11 December 2025, spun off from Embracer Group (renamed Fellowship Entertainment) and listed on Nasdaq First North Premier Growth Market Stockholm under ticker COFFEE B, with co-founder Anton Westbergh as CEO.
Could AI replace Coffee Stain Studios' games?: Unlikely directly. Coffee Stain's moat is beloved IP (Satisfactory, Valheim, Deep Rock Galactic) with multi-year community trust built through early access, not something generative AI replicates; AI mainly lowers rivals' production costs, an industry-wide tailwind, not a replacement threat, as of mid-2026.
What is Coffee Stain Studios' biggest competitor?: In the automation-sim genre, Wube Software's Factorio is the closest rival, though Wube announced Factorio 2.1 as its final major update in June 2026. Valheim also competes with Palworld and Grounded in survival-crafting.
Why did Coffee Stain Group's stock fall after its 2025 listing?: Coffee Stain Group's market cap fell about 21%, from roughly SEK 5.02 billion at its December 2025 Stockholm listing to about SEK 3.95 billion by July 2026, amid declining core revenue and a 94% net income drop for FY25/26.
Will Valheim's 1.0 launch save Coffee Stain's revenue?: Unconfirmed. Valheim exits Early Access into 1.0 on 9 September 2026 across PC, PS5, Xbox, and Switch 2 with the Deep North update, a major catalyst given its large existing install base, but conversion results won't be known until after launch.

Timeline

2026-07-12Former Coffee Stain founders announce rival studio Serpent's Gaze, a co-op soulslike RPG
2026-06-22Wube Software announces Factorio 2.1 will be its last major update
2026-05-19Into The Unwell delayed from 2026 Early Access to full 2027 release
2026-05-12Board flags SEK 300 million shareholder return and SEK 150 million buyback plan
2026-05-07Huntdown: Overtime enters Steam Early Access
2026-04-02Coffee Stain closes its mobile-focused Malmo studio
2025-12-11Coffee Stain Group spin-off completes, lists on Nasdaq First North Stockholm as COFFEE B
2025-05-22Embracer announces spin-off of Coffee Stain Group, renames itself Fellowship Entertainment
2024-09-10Satisfactory reaches full 1.0 release, surpassing 6 million copies sold
2018-11-01THQ Nordic (later Embracer) acquires Coffee Stain for about SEK 317 million

Revision history

23 July 2026

First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.

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