Paradox Interactive (PDX) Q1 2026 earnings summary

Executive summary

• Q1 revenue was SEK 431.1 million, down 7% year-over-year due to currency headwinds, with operating profit at SEK 100.8 million, down 31% from the prior year.

• Profit after tax was SEK 86.2 million, compared to SEK 123.7 million in Q1 last year.

• Organic revenue grew 2–3% after adjusting for FX, with strong performance from core franchises and a positive turnaround in Cities: Skylines II sentiment.

• Strong operating cash flow of SEK 309 million, up from SEK 266 million last year.

• The company maintains a robust pipeline of 8 projects and is prepared for future investments and acquisitions.

Financial highlights

• Reported revenue was SEK 431.1 million (down 7% year-over-year), mainly due to a 10% FX headwind.

• Operating profit was SEK 100.8 million (down from SEK 147 million), with profit after tax at SEK 86.2 million (down from SEK 124 million).

• Profit margin declined to 25% from 33% year-over-year, impacted by higher amortizations and FX.

• Cash and cash equivalents at period end were SEK 1,554.6 million.

• Earnings per share were SEK 0.82, down from SEK 1.17.

Outlook and guidance

• Several new releases and DLCs are planned for later in the year, with expectations for improved performance as new content is launched.

• The company expects cost base to decrease in Q2 as certain royalty agreements end and amortizations normalize.

• Move to Nasdaq Stockholm main market is targeted between June and December, with potential for share buybacks pending board approval.

• Focus remains on long-term growth through expanding established franchises and developing new strategy and management games.

• Continued investment in downloadable content, subscription models, and user-generated content to drive recurring revenue.