Cash is coming in, but it fell short of expectations.
Rogue core betrayed management’s expectations, and the 60% mixed reviews don’t give much reason to smile. Turning the ratings around has been sluggish for this project. In my own books, this was an important driver that could somehow justify the high valuation at which the company listed (30 SEK+).
Fellowship’s season 3 started well, but player numbers dropped back to the bottom in their familiar style. The game’s team has been downsized, meaning they are trying to curb this cash burn.
Satisfactory powered along in the background, bringing in good results, and Valheim 1.0 is coming in the autumn.
But it doesn’t seem to be enough for the market this time around; let’s see anyway. This time, Coffee Stain didn’t manage to get a new title around its strong core. The cash pile contains double the amount of money for future capital returns to shareholders (dividends + share buybacks), so at least some “kicking the can down the road” is expected.
So, a dividend of 0.68 SEK is planned to be distributed in four parts, and a 150 million SEK share buyback awaits approval at the Annual General Meeting (AGM) on September 24, 2026.
AGM update
The share buyback program seems to have been dropped from the AGM agenda. A sensible decision; Coffee Stain owns a 30% minority stake in Iron Gate (Valheim), and CSG could also increase this stake with its cash reserves, provided that Iron Gate’s buyers are selling.
The dividend remains unchanged.
A small change to the board of directors.
1.2 million share warrant program. The subscription price will likely be set at the ten-day average price * 135% after the AGM. An example for a 17.52 SEK share price resulted in a subscription price of 23.60 SEK for the next 3 years. So, there is some work to be done for the CEO and CFO to get the CSG share price to develop above the mentioned strike price.
The original comment on the board change needed a bit of clarification.
The new board member, Susana Meza Graham, is a veteran of gaming giant Paradox, where she served as COO and CMO. In 2020, she founded the investment firm Aldeon and has since made several investments in both gaming and other technology companies.
Lars went and bought some Coffee Stain.