Paradox Interactive (PDX) investor relations material

Executive summary

• Q2 2026 delivered solid results with 14% revenue growth to SEK 524 million, driven by strong catalogue sales and new content for established franchises, with Cities: Skylines I achieving record sales despite no new content.

• Operating profit increased 37% to SEK 182 million, with profit after tax at SEK 149 million, up from SEK 110 million last year.

• Nine pieces of content were released for seven franchises, with positive trends for Cities: Skylines II and strong engagement for Cities: Skylines I.

• The company was listed on the Nasdaq Stockholm Main Market in June 2026, enabling new opportunities such as a SEK 200 million share buyback program.

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

Financial highlights

• Q2 revenues reached SEK 524 million, up 14% year-over-year from SEK 459 million, despite a 2% negative FX impact.

• Operating profit was SEK 182 million, up 37% from SEK 133 million last year; profit before tax was SEK 188 million versus SEK 139 million.

• Profit margin improved to 36% from 30% year-over-year.

• Cash flow from operating activities was SEK 105 million, including a SEK 185 million payment for publishing rights; excluding this, cash flow would have been SEK 290 million.

• Cash flow from investing activities was SEK 166 million, similar to last year.

Outlook and guidance

• Q3 is expected to be seasonally slower with fewer releases, likely resulting in lower EBIT sequentially, but high activity and project showcases are anticipated at Gamescom.

• Amortization from recent major releases (Europa Universalis V and Bloodlines 2) is tapering off, reducing future cost pressure.

• No formal financial guidance provided, but long-term margin target remains above 40%.

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