Paradox Interactive (PDX) Q2 2025 earnings summary

Executive summary

• The quarter was described as uneventful, focused on building for future releases and testing new game ideas, with some expansions postponed, impacting revenue and profit.

• Revenue for Q2 2025 was SEK 469 million (MSEK 458.6), down 20% year-over-year, mainly due to currency effects and fewer major releases.

• Operating profit rose to SEK 133 million (MSEK 133.0), up 360% year-over-year, as last year included significant write-downs.

• Two major upcoming releases, Europa Universalis V and Vampire: The Masquerade – Bloodlines 2, are in development and anticipated.

• Key releases included expansions for Age of Wonders 4, Crusader Kings III, Stellaris, Victoria 3, and new games Darfall and Escape the Mad Empire.

Financial highlights

• Q2 revenue: SEK 469 million (MSEK 458.6), down 20% year-over-year; H1 revenue: MSEK 922.2, down 13% year-over-year.

• Q2 operating profit: SEK 133 million (MSEK 133.0), up 360% year-over-year; H1 operating profit: MSEK 279.6, up 53% year-over-year.

• Profit margin for Q2 was 30%, compared to 6% last year; rolling 12-month EBIT margin stands at 41%.

• Cash flow from operating activities was SEK 262 million (MSEK 262.0), down from SEK 391 million year-over-year.

• Dividend payout exceeded SEK 500 million (MSEK 528.1), impacting equity.

Outlook and guidance

• Focus remains on developing expansions and sequels for established franchises, with a strategy to invest in both live games and new projects.

• Anticipates an intense fall with several important releases, including Europa Universalis V and Vampire: The Masquerade – Bloodlines 2.

• Maintains confidence in long-term profitability and stable finances, supported by a strong product lineup.