CD Projekt (CDR) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales revenue was PLN 226.3 million, nearly flat year-over-year, with net profit at PLN 86.0 million, down 14% due to higher income tax adjustments for prior years.

• EBIT increased 18% year-over-year to PLN 95.6 million, reflecting improved operational efficiency and cost control.

• Cyberpunk 2077: Ultimate Edition will launch as a Nintendo Switch 2 debut title on June 5, 2025.

• The Witcher 3: Wild Hunt celebrated its 10th anniversary, surpassing 60 million copies sold and generating PLN 2.4 billion in revenue.

• Phantom Liberty expansion sold over 10 million copies since September 2023, and Cyberpunk 2 has entered pre-production with increased developer allocation.

Financial highlights

• Gross profit on sales rose 9% year-over-year to PLN 179.8 million, with gross margin improvement.

• Operating costs remained stable at PLN 84.2 million, up 1% year-over-year.

• Financial reserves increased by PLN 17 million to PLN 1.49 billion by end of March 2025.

• Ongoing business generated PLN 117 million in cash, over 36% more than net profit for the period.

• Net cash from operating activities was PLN 151.1 million, with total net cash inflow of PLN 92.4 million for the quarter.

Outlook and guidance

• Nintendo Switch 2 launch is expected to have a visible impact on Q2 2025 revenues, though no specific guidance was provided.

• The Witcher 4 is scheduled for release after 2026, with several productions in parallel development.

• Average pre-production to release cycle for major projects is four to five years, but timing may vary.

• GOG.COM plans to expand its catalogue and further develop the GOG Preservation Program with monthly updates.