Paradox Interactive (PDX) Q4 2025 earnings summary

Executive summary

• Q4 revenue rose 23% year-over-year to SEK 875 million, driven by major releases like Europa Universalis V and significant DLCs, but impacted by a SEK 701 million write-down on Vampire: The Masquerade - Bloodlines 2.

• Cash flow improved and the balance sheet was strengthened, with new franchises Victoria 3 and Age of Wonders 4 added to the core portfolio.

• The company acquired Haemimont Games and brought Cities: Skylines in-house, enhancing management game capabilities.

• Full-year revenue was SEK 2,191.9 million, nearly flat year-over-year, while operating profit dropped 80% to SEK 146.0 million.

• Strategic refocus on core strategy and management games, with resources redirected to internal studios.

Financial highlights

• Q4 revenue reached SEK 875 million, up 23% from SEK 709 million in Q4 2024, marking the second-best quarter ever.

• Operating profit was SEK -245 million, down from SEK 395 million, due to SEK 701 million in amortizations and write-downs for Bloodlines 2.

• Profit after tax was SEK -201 million for Q4, compared to SEK 311 million last year; full-year profit after tax was SEK 125.5 million, down from SEK 584.6 million.

• Cash flow from operating activities was strong at SEK 513 million for Q4 and SEK 1,236.5 million for the year.

• Dividend of SEK 5 per share proposed for the annual shareholders meeting.

Outlook and guidance

• Focus remains on developing new content for live games and sequels, with a disciplined approach to new investments and acquisitions.

• Future pipeline focused exclusively on deep strategy and management games, mostly developed in-house.

• Victoria 3 and Age of Wonders 4 are expected to continue growing, with Europa Universalis V anticipated to be highly profitable for years.

• Optimism for 2026 based on a compelling pipeline and strong control over key franchises.