Paradox Interactive (PDX) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 15% YoY to MSEK 456 and operating profit increased 27% to MSEK 142; catalogue sales and Transport Fever 3 supported results, while the Playrion disposal added MSEK 40.

• Excluding the Playrion gain, operating profit would have been below last year, mainly due to revenue mix.

• For 9M, revenue increased 7% to MSEK 1,411 and operating profit rose 9% to MSEK 425; profit after tax was MSEK 362.

• Management emphasized focusing resources on owned games, established genres and franchises.

Financial highlights

• Q3 revenue was MSEK 456 vs. 395; gross profit MSEK 187 vs. 192; operating profit MSEK 142 vs. 112; profit after tax MSEK 127 vs. 93.

• Q3 profit after financial items was MSEK 146 vs. 116; EPS was SEK 1.21 vs. SEK 0.88.

• 9M revenue was MSEK 1,411 vs. 1,317; gross profit MSEK 618 vs. 661; operating profit MSEK 425 vs. 391; profit after tax MSEK 362 vs. 327.

• Q3 cost of goods sold rose to SEK 269m from SEK 203m; selling expenses were SEK 59m vs. SEK 50m, and admin expenses SEK 29m in both periods.

• Q3 operating cash flow was SEK 197m vs. SEK 195m; capitalized development investment was SEK 166m vs. SEK 182m. 9M operating cash flow was MSEK 610 vs. 723.

Outlook and guidance

• A busier release period lies ahead, including Crusader Kings III: Silk & Silver and expansion passes for Age of Wonders 4 and Cities: Skylines II later in 2026.

• Q4 slate also includes content for Europa Universalis V, Crusader Kings III, Stellaris and consoles.

• Transport Fever 3 sales were in line with expectations at quarter-end; management sees revenue potential over many years.

• Afterworld and LEGO Skylines have no confirmed release dates; substantial development work remains, with quality prioritized and an aim to shorten announcement-to-release timing.

• Management expects rolling 12-month profit to improve next quarter as the Q4 2025 Bloodlines 2 write-down leaves the comparison period; no projects of similar magnitude remain.