Paradox Interactive (PDX) investor relations material

Executive summary

• Revenue for Q2 2026 reached SEK 524 million, up 14% year-over-year, driven by strong catalogue sales and new content for established franchises.

• Operating profit rose to SEK 182 million, a 37% increase from last year, with a profit margin of 36%.

• Growth was supported by successful releases and ongoing improvements to existing titles, notably Cities: Skylines II and new downloadable content for major franchises.

• The company entered the main list of the Nasdaq Stockholm in June 2026, enabling a SEK 200 million share buyback program.

• Nine pieces of content were released across seven franchises, with strong performance from "Cities: Skylines" despite no new content.

Financial highlights

• Q2 revenue: SEK 524 million (up 14% YoY); H1 revenue: SEK 955 million (up 4% YoY).

• Q2 operating profit: SEK 182 million (up 37% YoY); H1 operating profit: SEK 283 million (up 1% YoY).

• Q2 profit after tax: SEK 149 million (up from SEK 110 million YoY); H1 profit after tax: SEK 235 million (up from SEK 234 million YoY).

• Earnings per share before and after dilution for Q2: SEK 1.41 (up from SEK 1.04 YoY).

• Cash flow from operating activities for Q2: SEK 105 million, impacted by a SEK 185 million payment for publishing rights.

Outlook and guidance

• Q3 is expected to be seasonally slower, with lower EBIT due to fewer releases.

• Management anticipates high activity and project showcases at Gamescom.

• Amortization from major releases (Europa Universalis V, Bloodlines 2) is declining, reducing future cost pressure.

• Continued investment in development teams and AI tools to support long-term growth and player engagement.