CD Projekt (CDR) Q2 2025 earnings summary

Executive summary

• H1 2025 sales revenue rose 4.3% year-over-year to PLN 443 million, driven by new product launches, strong franchise performance, and expansion into new platforms such as Nintendo Switch 2 and Apple silicon Macs.

• Net profit for H1 2025 was PLN 155 million, down 9% year-over-year, with a net margin of 35%, impacted by tax adjustments.

• EBIT increased 20% year-over-year to PLN 168 million.

• Workforce grew by 10% to nearly 800 developers, with major increases in The Witcher 4 and Cyberpunk 2 teams.

• Major events included the launch of Cyberpunk 2077: Ultimate Edition, a Witcher 4 Unreal Engine 5 tech demo, and the announcement of Cyberpunk: Edgerunners 2 for Netflix.

Financial highlights

• Gross profit on sales increased 10% year-over-year to PLN 343.8 million, with a gross margin of 77.6%.

• Operating costs grew 2% year-over-year, with selling expenses up 28% and administrative costs offset by capitalization of development.

• Cash, deposits, and bonds totaled PLN 1.43 billion at June-end, down PLN 45 million from the start of the year.

• Earnings per share was PLN 1.55, compared to PLN 1.70 in the prior year.

• Book value per share increased to PLN 28.80 from PLN 24.87 year-over-year.

Outlook and guidance

• Development expenditures are expected to continue rising as project work accelerates and teams expand, especially for The Witcher 4 and Cyberpunk 2.

• Anticipated further gradual growth in developer headcount by year-end, particularly for advanced-stage projects.

• Continued expansion into new platforms and digital channels is expected to support future growth.

• Management confirmed the going concern assumption for at least 12 months post-reporting date.