Paradox Interactive AB (publ): Interim report January - June 2025

SECOND QUARTER

• Revenues amounted to MSEK 458.6 (MSEK 575.8), a decrease of 20% compared to the same period last year.
• Operating profit amounted to MSEK 133.0 (MSEK 28.9), an increase of 360%. Last year's operating profit was burdened by write-downs amounting to MSEK 208.0.
• Profit after financial items amounted to MSEK 138.9 (MSEK 36.8), and profit after tax amounted to MSEK 110.3 (MSEK 27.3).
• Cash flow from operating activities amounted to MSEK 262.0 (MSEK 391.1), and cash flow from investing activities amounted to MSEK -207.6 (MSEK -81.2). Cash flow from investing activities includes the purchase of the publishing rights to the game Stranded: Alien Dawn, amounting to MSEK -46.5. Cash flow from investing activities included a positive effect of MSEK 70.0 from the sale of short-term investments in bonds in the previous year. Cash flow from financing activities amounted to MSEK -537.8 (MSEK -326.4), of which MSEK -528.1 (MSEK -316.9) relates to distributed dividends to shareholders.
• At the end of the period, cash and cash equivalents amounted to MSEK 1,018.6 (MSEK 1,164.2).
• Earnings per share before dilution amounted to SEK 1.04 (SEK 0.26) and after dilution to SEK 1.04 (SEK 0.26).
• Revenues for the quarter are primarily attributable to Age of Wonders 4, Cities: Skylines, Cities: Skylines II, Crusader Kings III, Hearts of Iron IV, Stellaris and Victoria 3.

IMPORTANT EVENTS IN THE SECOND QUARTER

• The new game Europa Universalis V, developed by Paradox Tinto, was announced.
• Escape the Mad Empire, developed by XperimentalZ Games, and published by Paradox Arc, was released for PC in early access.
• Darfall, developed by SquareNite, and published by Paradox Arc, was released for PC.
• New downloadable content was released for games during the period; Giant Kings for Age of Wonders 4, Khans of the Steppe for Crusader Kings III, BioGenesis for Stellaris, Charters of Commerce for Victoria 3, Tulah, the Spider Queen and The Sunken Temple for Across the Obelisk, and Hunt for Aurora for Empire of Sin.
• New downloadable content ports were released during the period; Legacy of Persia for Crusader Kings III.
• Paradox Publisher Sale and Steam Summer Sale took place during the period.

FIRST SIX MONTHS

• Sales amounted to MSEK 922.2 (MSEK 1,057.9), a decrease of 13% from the previous year.
• Operating profit amounted to MSEK 279.6 (MSEK 183.3), an increase of 53%.
• Profit after financial items amounted to MSEK 292.8 (MSEK 201.8), and profit after tax amounted to MSEK 234.0 (MSEK 154.1).
• Earnings per share before dilution amounted to MSEK 2.22 (MSEK 1.46) and after dilution to MSEK 2.21 (MSEK 1.46).

COMMENTS BY THE CEO

The second quarter of 2025 has been a quarter without major events, but one in which we continued to lay an important foundation for the future. We have been fully focused on further developing our established game franchises, testing new ideas within Paradox Arc, and not least fine-tuning two of our most eagerly awaited releases: Europa Universalis V and Vampire: The Masquerade - Bloodlines 2. Both games represent years of dedication and passion from our teams and from our fans; and we look forward with great anticipation to sharing them with the players shortly.

PRESENTATION OF REPORT

7 August 12:00 PM CEST Fredrik Wester, CEO, and Alexander Bricca, CFO, will host a livestream on Paradox's YouTube channel to present the interim report, and answer questions related to the report and the company's financial performance, https://www.youtube.com/paradoxinteractive.

Questions may be submitted in advance via our forum or by e-mailing them to [e-mail]. It will be possible to e-mail questions to [e-mail] during the presentation.

If you miss the presentation, it will be posted on Paradox's YouTube channel at a later time.

This disclosure contains information that Paradox Interactive AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 07-08-2025 08:00 CET.

For additional information, please contact:
Fredrik Wester, CEO Paradox Interactive
Alexander Bricca, CFO Paradox Interactive
Email: [e-mail]
Phone: [phone]

About Paradox Interactive
Paradox Interactive is one of the premier developers and publishers of strategy and management games for PC and consoles. The players are located all over the world but some of the biggest markets are North America, Western Europe and Asia. The game portfolio consists of popular franchises such as Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities: Skylines, Prison Architect, the Surviving games, Age of Wonders and Victoria. Paradox Interactive also owns the World of Darkness brand catalog. In total, Paradox games have six million players each month.

Paradox Interactive AB (publ)'s shares are listed on Nasdaq Stockholm First North Premier under ticker PDX. Certified Advisor: FNCA Sweden AB. For more information, please visit www.paradoxinteractive.com.