Paradox Interactive (PDX) Q3 2025 earnings summary

Executive summary

• Q3 revenues decreased 9% year-over-year to SEK 395 million, with operating profit down 22% to SEK 112 million and profit after tax at SEK 93 million, reflecting fewer releases and a stronger Krona.

• Major Q3 revenue drivers included Age of Wonders 4, Cities: Skylines, Cities: Skylines II, Crusader Kings III, Hearts of Iron IV, Stellaris, and Victoria 3, with strong DLC attachment rates.

• Q3 was a slower quarter with fewer releases, but preparations are underway for a record-busy Q4 with two new base games, a remaster, seven DLCs, four ports, and seven content creator packs.

• CEO highlights ongoing efforts to strengthen commercial and development capabilities.

Financial highlights

• Revenues for Q3 were SEK 395 million, down 9% year-over-year from SEK 434 million, mainly due to currency effects and fewer major releases.

• Operating profit was SEK 112 million, down from SEK 143 million in Q3 last year.

• Profit after tax was SEK 93 million, compared to SEK 120 million last year.

• Positive operating cash flow of SEK 195 million, up from SEK 154 million last year; cash and cash equivalents at period end: SEK 1,020 million.

• Earnings per share Q3: SEK 0.88 (down from SEK 1.13 YoY).

Outlook and guidance

• Q4 expected to be the busiest in company history, with launches of Europa Universalis V, Vampire: The Masquerade – Bloodlines 2, a remaster, and multiple expansions.

• Marketing and selling expenses will be higher in Q4 due to concentrated releases.

• Strong pipeline for 2026, with a mix of experimental and major internally developed titles.

• Continued focus on pricing, packaging, and new partnerships; expansion into new markets and management genre.