Paradox Interactive (PDX) Q1 2025 earnings summary

Executive summary

• Q1 2025 was a slow quarter with few releases, resulting in a 4% revenue decline to SEK 463.6 million and a 5% drop in operating profit to SEK 146.6 million, but strong cash flow and a solid financial foundation.

• Completed the acquisition of Haemimont Games and purchased publishing rights for Stranded: Alien Dawn, strengthening the management genre portfolio.

• Key revenue drivers included Cities: Skylines, Cities: Skylines II, Crusader Kings III, Stellaris, and Hearts of Iron IV.

• Announced and released several expansion passes and content packs for major IPs.

• Currency headwinds impacted results, but cash flow from operations increased to SEK 266.2 million.

Financial highlights

• Revenue for Q1 2025 was SEK 463.6 million, down from SEK 482.1 million in Q1 2024.

• Operating profit was SEK 146.6 million, compared to SEK 154.4 million last year.

• Profit after tax was SEK 123.7 million, slightly down from SEK 126.9 million.

• Cash flow from operating activities was SEK 266.2 million, up from SEK 136.9 million last year.

• Cash and cash equivalents at period end were SEK 1,501.5 million, up from SEK 1,181.8 million.

Outlook and guidance

• Confident outlook for the remainder of 2025, with a strong pipeline of major and experimental game releases.

• Q2 expected to see more releases and content, which should offset currency headwinds.

• Anticipates a more stable release pipeline in the coming years, aiming for 1–3 new titles annually.

• Focus on building games as platforms and expanding the management genre.

• Expansion passes for Crusader Kings III, Stellaris, and Victoria 3 are planned.