Paradox Interactive FY2025 Earnings Release

*Please note that this is a translation for information purposes only –
in case of any discrepancies between this version and the Swedish,
the Swedish version shall prevail.

YEAR – END REPORT
JANUARY – DECEMBER 202 5

YEAR -END REPORT , JANUARY – DECEMBER 2025 2
YEAR -END REPORT
JANUARY – DECEMBER 2025
FOURTH QUARTER
• Revenues amounted to MSEK 874.8 (MSEK 709.1 ),
an increase of 23% compared to the same period
last year.
• Operating profit amounted to MSEK -245.4 (MSEK
395.3 ), a decrease of 162 %. The operating profit
includes amorti sation and write -downs of
Vampire: The Masquerade – Bloodlines 2,
amounting to MSEK 345.7 (MSEK 0.0) and MSEK
355.3 (MSEK 0.0), respectively.
• Profit after financial items amounted to MSEK
-241.7 (MSEK 404.3 ), and profit after tax amounted
to MSEK -201.4 (MSEK 310.8 ).
• Cash flow from operating activities amounted to
MSEK 513.2 (MSEK 441.8 ), and cash flow from
investing activities amounted to MSEK –145.5
(MSEK -158.9 ). Cash flow from financing activities
amounted to MSEK -9.8 (MSEK -9.7).
• At the end of the period, cash and cash
equivalents amounted to MSEK 1,375.3 (MSEK
1,469.4 ).
• Earnings per share before dilution amounted to
SEK -1.91 (SEK 2.94 ) and after dilution to SEK -1.91
(SEK 2.94 ).
• Revenues for the quarter are primarily
attributable to Age of Wonders 4, Cities: Skylines,
Cities: Skylines II, Crusader Kings III, Europa
Universalis V, Hearts of Iron IV, Stellaris , Vampire:
The Masquerade – Bloodlines 2, and Victoria 3.

IMPORTANT EVENTS FOURTH QUARTER
• The new game Europa Universalis V, developed by
Paradox Tinto, was released to PC.
• The new game Vampire: The Masquerade –
Bloodlines 2, developed by The Chinese Room, was
released to PC and console.
• New downloadable content was released for
games during the period : All Under Heaven to
Crusader Kings III, No Compromise, No Surrender
to Hearts of Iron IV, Bridges & Ports, Supply Chains
and Skyscrapers to Cities: Skylines II, Thrones of
Blood to Age of Wonders 4, Necropolis of the
Damned to Across the Obelisk, Infernals to Stellaris
and Iberian Twilight to Victoria 3.
• New ports of downloadable content were release d
during the period: Legends of the Dead to Crusader
Kings III and The Machine Age to Stellaris.
• A remaster of the game Surviving Mars, developed
by Haemimont Games, was released during the
period.
• Steam Winter Sale and Steam Autumn Sale took
place during the period.
• The Board proposes a n ordinary dividend of SEK
5.00 (SEK 3.00) per share, and a special dividend of
SEK 0.00 (SEK 2.00) per share.
FULL YEAR
• Sales amounted to MSEK 2,191,9 (MSEK 2,200.9 ), a
decrease of 0% from the previous year.
• Operating profit amounted to MSEK 146.0 (MSEK
721.4 ), a decrease of 80%.
• Profit after financial items amounted to MSEK
167.4 (MSEK 757.3 ), and profit after tax amounted
to MSEK 125.5 (MSEK 584.6 ).
• Earnings per share before dilution amounted to
SEK 1.19 (SEK 5.54 ) and after dilution to SEK 1.18
(SEK 5.53 ).

YEAR -END REPORT , JANUARY – DECEMBER 2025 3
COMMENTS BY THE CEO
We closed the year with our most intense quarter in
company history. With two new game releases, one
remaster, and DLCs for most titles, we held a pace
that truly demonstrates the strength of our
organi sation and our portfolio. The core business
delivered strong performance with high revenues and
solid cash flow. However, the results for the period
were impacted by currency headwinds and the write –
down of Vampire: The Masquerade – Bloodlines 2, as
the gam e did not meet our commercial expectations.
At the sa me time, this marks an important turning
point: we are now strengthening our strategic focus,
reallocating resources, and creating even better
conditions for future investments where we have our
greatest expertise and long -term potential.
The major highlight of both the quarter and the year
was the launch of Europa Universalis V, a game that
brings the franchise into a new era. Few game series
have been as central to Paradox as Europa
Universalis. What began as a niche title 25 years ago
is today a textbook example of how we build long –
lasting games with highly engaged communities.
With this latest installment, we have taken significant
steps forward and laid a very strong foundation for
the future. The reception from both players and
critic s clearly demonstrates the game’s longevity and
the substantial potential that exists in the franchise
for many years to come.
At the same time, we continued to develop our long –
lived titles through several highly appreciated
expansions for our strategy and management games.
Examples include All Under Heaven for Crusader
Kings III, which opened up an entirely new continent,
and Br idges & Ports for Cities: Skylines II, the first DLC
in the series. We also relaunched one of our most
beloved management games with Surviving Mars:
Relaunched, and we look forward to building on this
with new DLCs in the coming year.
As we look ahead, we do so with clarity, focus, and
strengthened confidence. Vampire: The Masquerade
– Bloodlines 2 was the last major project in
development that was outside of our core areas. As
post -release work winds down, resources and focus
are being redirected to projects where we know we
can create the greatest value. Our future pipeline is
now fully concentrated on deep strategy and
management games, with the majority developed in
our own studios which provides both creative
strength and l ong -term profitability.
In line with this, we are very pleased that Iceflake
Studios in Tampere has become the new home of the
Cities: Skylines franchise. The team’s deep expertise
in management games, combined with future
development now taking place within an internal
studio, g ives us increased control over the franchise’s
long -term development . This provides even stronger
conditions to reali se its full potential. Going forward,
the focus will be on continuous updates, close
collaboration with the community, and exciting new
con tent.
In summary, we enter the new year with strong
optimism about the future. With a highly focused and
compelling pipeline, financial freedom for new
investments, and strong control over our most
important franchises, we have both the conditions
and the ambitions to deliver more to our players.

Fredrik Wester, CEO

YEAR -END REPORT , JANUARY – DECEMBER 2025 4
PARADOX INTERACTIVE
AT A GLANCE
Paradox Interactive is one of the premier developers and publishers of strategy and management games for PC and
consoles. By developing long -lived games with downloadable content, renewing its game portfolio with engaging
games and having a close relations hip to its players, the company creates the strategy and management segments’
best gaming experiences.
The group consists of publishing business and six studios in six countries that develop gaming experiences for the
company’s six million monthly active players. Amongst its most important active games are Cities: Skylines, Cities:
Skylines II, Hearts of Iron IV, Crusader Kings III, Europa Universalis V, Victoria 3, Stellaris and Age of Wonders 4.
Paradox strives for a healthy profit margin, a stable operating cash flow and strong growth. Thus, enabling stable
operations and continuous investments in the company’s future.

6
Mil lion MAU

7
Games in pipeline
8 %
R12 profit margin
Rolling 12 -month revenues and operating profit Quarterly revenues and operating profit 0
500
1,000
1,500
2,000
2,500
3,000
Rolling 12 months revenue Rolling 12 months operating profit -400
-200
0
200
400
600
800
1,000
1,200
Revenues Operating profit

YEAR -END REPORT , JANUARY – DECEMBER 2025 5
RELEASE S IN THE PERIOD

EUROPA UNIVERSALIS V
Release date: 4 November 202 5
Platforms: PC
Price: USD 59.99
Description : Almost five hundred years of history unfold before you in Europa
Universalis V. Guide the destiny of any of hundreds of nations and societies in a
simulated living world of unparalleled depth and complexity. Europa Universalis V
builds on the franchise’s core concept of developing and advancing nations from
around a deeply researched historical world, adding more detailed diplomacy, a
more sophisticated economic model, a revised military system and greater log istical
depth that will challenge e ven the most experienced strategy gamers.
Publisher: Paradox Interactive
Developer: Paradox Tinto

CRUSADER KINGS III: ALL UNDER HEAVEN
Release date: 28 October 202 5
Platforms: PC
Price: USD 29. 99
Description : The world of Crusader Kings III is expanding. In All Under Heaven – the
game’s fourth Major Expansion – the map extends to Asia to include the rich and
storied lands of China, Japan, and Southeast Asia. Lead legendary warrior houses,
manage vast empires an d navigate intricate power struggles in this vibrant region
filled with history, culture and innovation.
Publisher: Paradox Interactive
Developer: Paradox Development Studio

HEARTS OF IRON IV : NO COMPROMISE, NO SURRENDER
Release date: 20 November 2025
Platforms: PC
Price: USD 29. 99
Description: Mould new paths in history for Japan, China and the Philippines in No
Compromise, No Surrender, an Expansion for Hearts of Iron IV. Seize a greater depth
of control over factions, forge new military doctrines and decide the fate of the
Pacific and beyond.
Publisher: Paradox Interactive
Developer: Paradox Development Studio

YEAR -END REPORT , JANUARY – DECEMBER 2025 6

CITIES: SKYLINES II – BRIDGES & PORTS
Release date: 29 October 2025
Plat forms : PC
Pri ce: USD 19.99
Description : Link your city to the sea with drawbridges and lift bridges. Managing
traffic over these bridges while keeping seaways moving. Ferries become a natural
choice to connect neighbourhoods and get commuters where they’re going. Bring
the shoreline to life with nine new parks, leisure piers in different sizes and quays
that handle anything from simple paths to multi -lane roads. Spotligh t it all with
one of four new lighthouses, one of which doubles as a tourist landmark.
Publisher : Paradox Interactive
Developer : Colossal Order

CITIES: SKYLINES II – CREATOR PACK: SUPPLY CHAINS
Release date : 3 December 202 5
Platforms: PC
Price: USD 7.99
Description: Grow your city’s industry with the Creator Pack ‘Supply Chains’.
Designed by community creator ‘Badi_Dea’, this pack captures the progression of
your industrial production from modest workshops to global -scale manufacturing
including their corporate headqu arters. From farmers’ markets to retail stores,
each building represents a step in your city’s supply chain; tracing the journey
from raw materials to the hands of the end consumer.
Publisher: Paradox Interactive
Developer: Badi_Dea

CITIES: SKYLINES II – CREATOR PACK: SKYSCRAPERS
Release date: 3 December 202 5
Platforms: PC
Price: USD 7.99
Description: Reach for the sky with the Creator Pack ‘Skyscrapers’. Designed by
community creator ‘REV0’. This pack introduces a bold collection of towering
buildings that will transform the skyline of your city. Paying tribute to
international architectural styles, it features a selection of stunning high -rises that
offer a range of city service upgrades.
Publisher: Paradox Interactive
Developer: REV0

YEAR -END REPORT , JANUARY – DECEMBER 2025 7

VAMPIRE: THE MASQUERADE – BLOODLINES 2
Release date: 21 October 2025
Platforms: PC
Price: USD 59.99
Description : You are the Nomad — an elder vampire awakening from a century -long
slumber, new to the modern nights. Trapped in your Blood is a stranger’s voice. This
entity, a vampire detective known as Fabien, will be your guide to 21st -century
Seattle. You will explor e the city through his eyes as well as those of the Nomad.
Hunt your way through a modern -night Seattle on the brink of an open supernatural
war .
Publisher: Paradox Interactive, World of Darkness
Developer: The Chinese Room

AGE OF WONDERS 4: THRONES OF BLOOD
Release date: 11 November 202 5
Platforms: PC, Xbox Series X|S, PlayStation 5
Price: USD 19.99
Description : Rise as a powerful vampire ruler, build your dark empire in the
shadows, and wield ancient blood magic to dominate the realms. Explore the
Sunless Lands where rivers of blood flow, and forge pacts with creatures of the night
to ensure your eternal reign. C ontains a vampire ruler type, new tomes and wildlife
units, and a new story realm that explores the origins of the Elder Vampires.
Publisher: Paradox Interactive
Developer: Triumph Studios

ACROSS THE OBELISK: NECROPOLIS OF THE DAMNED
Release date: 2 December 2025
Platforms: PC
Price: USD 19.50
Description: Cross the threshold into the Necropolis of the Damned, a haunting
alternate path through Act 4, and a new ending to your adventure in Across the
Obelisk.
Publisher: Paradox Arc
Developer: Frag Games

YEAR -END REPORT , JANUARY – DECEMBER 2025 8

SURVIVING MARS RELAUNCHED
Release date: 10 November 2025
Platforms: PC, Xbox Series X|S, PlayStation 5
Price: USD 39.99
Description : Your mission: colonize Mars and survive the process, from exploration
and infrastructure to welcoming human colonists and achieving long -term stability.
Surviving Mars: Relaunched brings together the original colony management game
from Haemimont Games, it s entire catalogue of expansions, improved and
reworked, from major expansions to cosmetics and radio stations, as well as the all –
new Martian Assembly update. Upgraded graphics together with updated UI will give
veteran players the definitive Surviving Ma rs experience .
Publisher: Paradox Interactive
Developer: Haemimont Games

STELLARIS: INFERNALS
Release date: 25 November 202 5
Platforms: PC
Price: USD 12.99
Description : Thrive where others burn. The Stellaris: Infernals Species Pack invites
you to forge a blazing empire, built to endure the galaxy’s most extreme heat.
Publisher: Paradox Interactive
Developer: Paradox Development Studio, Forgotten Empires

VICTORIA 3: IBERIAN TWILIGHT
Release date: 11 December 2025
Platforms: PC
Price: USD 9.99
Description: Reverse the fortunes of the waning Spanish and Portuguese Empires in
Iberian TwilightReform outmoded political and economic systems and foster an
agricultural and industrial revolution on the peninsula.
Publisher: Paradox Interactive
Developer: Paradox Development Studio

YEAR -END REPORT , JANUARY – DECEMBER 2025 9

CRUSADER KINGS III CONSOLE EDITION: LEGENDS OF THE DEAD
Release date: 18 November 2025
Platforms: Xbox Series X|S, PlayStation 5
Price: USD 19.99
Description : What good are grand accomplishments and heroic deeds if no one
sings of them after you have gone? A royal legacy is only useful, after all, if it can
provide cover and legitimacy for those who come after you. Live on in the memory of
your subjects and riva ls in Legends of the Dead .
Publisher: Paradox Interactive
Developer: Paradox Development Studio , Room8 Group

STELLARIS CONSOLE EDITION: THE MACHINE AGE
Release date: 6 November 202 5
Platforms : Xbox Series X|S, PlayStation 5
Price: USD 24. 99
Description : As cybernetic augmentation transcends the limits of the body,
synthetic ascension beckons with the promise of eternal life. It is a period of
technological marvels, rapid change, and unchecked ambition. But from the ashes
of a Fallen Empire, a danger unlike any before encountered is about to emerge, a
looming threat that will throw the very meaning of life into question.
Publisher: Paradox Interactive
Developer: Paradox Development Studio, Tantalus Media

YEAR -END REPORT , JANUARY – DECEMBER 2025 10
FINANCIAL OVERVIEW
REVENUE AND PROFIT FOURTH QUARTER
Revenues amounted to MSEK 874.8 (MSEK 709.1 ), a n
increase of 23% compared to the same period last
year. Revenues for the quarter are primarily
attributable to Age of Wonders 4, Cities: Skylines,
Cities: Skylines II, Crusader Kings III, Europa Universalis
V, Hearts of Iron IV, Stellaris, Vampire: The Masquerade
– Bloodlines 2, and Victoria 3. The change in revenue is
strongly correlated with variation in the releases that
occur. The increase in revenue compared with the
previous year is mainly explained by the releases of the
new games Europa Universalis V and Vampire: The
Masquerade – Bloodlines 2. The quarter’s release of All
Under Heaven for Crusader Kings III also contributed
to higher revenue, while the comparative period’s
expansion Götterdämmerung for Hearts of Iron IV, as
well as, among others, the Grand Archives expansion
for Stellaris, generated higher revenue in the prior
period.
The Group’s revenue is mainly in currencies other than
SEK and is therefore exposed to exchange rate
fluctuations. The quarter’s revenue has been
negatively affected by the exchange rate development
of the strengthened krona compared to the same
period last year.
Cost of goods sold amounted to MSEK 1,000.6 (MSEK
262.7 ), attributable to game development,
development support, operation and maintenance of
games, costs for licenses, trademarks and similar
rights, as well as royalties and revenue -based
contingent consideration to development studios and
other rights holders .
Amorti sation of released games amounts to MSEK
510.4 (MSEK 91.4 ). The games are generally amorti sed
over 18 months, usually using a degressive
depreciation method. The purpose of the amortisation
is to provide a fair view of the company’s operations
and gross profit but may contribute to volatility in the
cost of goods sold item. The increase is driven by
amorti sation of the new games Vampire: The
Masquerade – Bloodlines 2 and Europa Universalis V.
Vampire: The Masquerade – Bloodlines 2, which has
been under development since 2016, was released in
October 2025 and is s ubject to scheduled amorti sation
of the entire capitali sed development cost over the
period from October to December 2025, amounting to
MSEK 345.7. Following the game’s release, updated
sales forecasts for the title resulted in a non -cash
write -down being recogni sed in addition to the
scheduled amorti sation.
Write -downs recogni sed within cost of goods sold for
the period amount to MSEK 355.3 (MSEK 0.0) and are
entirely related to Vampire: The Masquerade –
Bloodlines 2.

Amorti sation of licenses, trademarks and similar rights
amounts to MSEK 7.7 (MSEK 13. 8). Amortisation has
decreased as a result of the amorti sation of excess
values from the acquisition of Playrion Games Studio
now being fully amorti sed. At the same time, the
decrease is offset by new amorti sations related to the
acquired publishing rights for Stranded: Alien Dawn, as
well as amorti sations of excess values from the
acquisition of Haemimont Games.
In addition to depreciation, amortisation and write –
downs within the item, a total of MSEK 119.9 (MSEK
150.1 ) was expensed regarding non -capitalised
development costs, development support, operation
and maintenance of games, royalties and revenue
based earn -outs.
Non -capitali sed development costs have decreased
since the previous year. Costs for development
support, operations, and maintenance of games have
increased compared to the reference period, mainly as 0
50
100
150
200
250
300
350
400
Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
Write-downs

YEAR -END REPORT , JANUARY – DECEMBER 2025 11
a result of a minor reorgani sation between the
development studio and the publisher’s operations
and maintenance services.
Royalties and revenue -based contingent consideration
have decreased compared to the previous year, mainly
driven by Age of Wonders 4, where the sellers of
Triumph Studios receive a revenue -based contingent
consideration until April 2026.
Selling expenses for the period amounted to MSEK 84.5
(MSEK 58.5 ). The increase is a result of higher costs
related to the releases of Europa Universalis V and
Vampire: The Masquerade – Bloodlines 2.
Administrative expenses for the period amounted to
MSEK 28.9 (MSEK 25.0 ). The increase compared to the
previous year mainly relates to items of a non –
recurring nature. Administrative expenses are
generally unchanged over time and are relatively
unaffected by other operations.

Other operating income amounted to MSEK 2.7 (MSEK
32.9 ) and other operating expenses to MSEK -8.8 (MSEK
-0.5 ). Other operating income and other operating
expenses consist primarily of foreign exchange rate
movements on the Group’s cash and cash equivalents,
operating receivables and operating liabilities during
the quarter.
Operating profit amounted to MSEK -245.4 (MSEK 395.3 ).
Financial income amounted to MSEK 4.4 (MSEK 9.5)
and consists primarily of interest income from bank
accounts. Financial expenses amounted to MSEK 0.7
(MSEK 0.4) and consists primarily of calculated interest
on lease liabilities.
Profit after financial items amounted to MSEK -241.7
(MSEK 404.3 ), and profit after tax amounted to MSEK
-201.4 (MSEK 310.8 ).
FINANCIAL POSITION
Capitali sed development expenses at the end of the
period amounted to MSEK 1, 015.1 (MSEK 1, 454.3 ). The
item relates to both games that have not yet been
completed and games that have been released and are
subsequently amorti sed. Vampire: The Masquerade –
Bloodlines 2, which was released in October 2025, has,
after scheduled amorti sation and write -downs, a
carrying amount that reflects the Group’s expected
earnings from the game. Europa Universalis V, which
was released in November 2025, has been amorti sed
according to plan since its release. At the same time,
capitali sed development costs remain for, among
other things, the announced game Prison Architect 2.
Development is also ongoing for a number of
unannounced games that are capitali sed on an
ongoing basis, as well as expansions for previously
released games.

Licenses, trademarks, and similar rights amounted to
MSEK 105.8 (MSEK 52.7 ). The increase relates to the
acquired publishing rights to Stranded: Alien Dawn, as
well as surplus values from the acquisition of
Haemimont Games. At the end of the period, the
excess values from the acquisition of Playrion Games
are fully amortised.
Goodwill amounted to MSEK 21.8 (MSEK 23.1 ),
attributable to the acquisition of Iceflake Studios.
Right -of-use assets for rental premises amounted to
MSEK 171.6 (MSEK 69.7 ). The increase refers to the
renewed lease agreement on Södermalm , Stockholm. 0
200
400
600
800
1,000
1,200
Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
COGS Selling expenses Administrative expenses 0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
Thousands
Capitalised development costs

YEAR -END REPORT , JANUARY – DECEMBER 2025 12
Accounts receivable at the end of the period amounted
to MSEK 271.2 (MSEK 280.1 ).
Cash and cash equivalents at the end of the period
amounted to MSEK 1,375.3 (MSEK 1,469.4 ).
Long -term lease liabilities amount to MSEK 137.4
(MSEK 33.9 ), relating to rental commitments for office
premises. The current lease agreement on Södermalm
in Stockholm expires at the end of September 2026
and was renewed shortly before the end of the third
quarter 2025 .

Deferred tax liabilities amount to MSEK 153.6 (MSEK
163.5 ) relating to tax on untaxed reserves and
intangible assets from acquisitions.
Short -term lease liabilities amount to MSEK 27.8
(MSEK 30. 9), relating to short -term rental
commitments for office premises.
Accrued expenses and prepaid income at the end of
the period amount to MSEK 278.4 (MSEK 326.1 ).
Prepaid income is in line with the previous year, with
prepaid income related to downloadable content for
Cities: Skylines 2 having decreased, while prepaid
income related to downloadable content for Europa
Universalis V and Vampire: The Masquerade –
Bloodlines 2 has increased. Accruals for royalties
payable to game developers, as well as accruals for
variable remuneration to employees, have decreased
compared wi th the previous year.
CASH FLOW FOURTH QUARTER
Cash flow from operating activities for the period
amounted to MSEK 513.1 (MSEK 441.8 ), primarily
attributable to operating profit adjusted for
depreciations, amortisations and write -downs . Cash
flow from investing activities amounted to MSEK -145.5
(MSEK -158.9 ) and mainly relates to investments in
game development . Cash flow from financing activities
amounted to MSEK -9.8 (MSEK -9.7) relating to
amorti sation of lease liabilities for office premises.
FULL YEAR IN SUMMARY
Revenues amounted to MSEK 2,191.9 (MSEK 2,200.9 ), a
de crease of 0% compared to the same period last year.
Cost of goods sold amounted to MSEK 1,656.9 (MSEK
1,203.6 ), attributable to game development,
development support, operation and maintenance of
games, as well as royalties and revenue -based
contingent considerations to third parties. Write –
downs recogni sed within cost of goods sold for the
period amounted to MSEK 355.3 (MSEK 208.0),
attributable to Vampire: The Masquerade – Bloodlines
2. The prior year’s write -downs relate to the
discontinuation of the game Life By You. Operating
profit amounted to MSEK 146.0 (MSEK 721.4 ), a
decrease of 80%. Profit after financial items amounted
to MSEK 167.4 (MSEK 757.3 ), and profit after tax
amounted to MSEK 125.5 (MSEK 584.6 ). Cash flow from
operating activities amounted to MSEK 1,236.5 (MSEK
1,123.5 ). Cash flow from investing activities amounted
to MSEK -752.8 (MSEK -403.2 ). In the prior year, cash
flow from investing activities included sales of bonds
amounting to MSEK 200.5. Cash flow from financing
activities amounted to MSEK -567.1 (MSEK -355.2 ).
RELATED PARTY TRANSACTIONS
No significant transactions have taken place between
the group and related parties that have affected the
group’s position and results.
PARENT COMPANY FOURTH QUARTER
The parent company houses the publishing business.
Within the publishing business, the parent company
buys development services from both external and
wholly owned development studios and pays royalties
to these where applicable. The parent company also
provides administrative services to the subsidiaries. All
in all, this leads to the parent company’s revenues to a
large extent making up the group’s total revenues .
The parent company’s revenues in quarter amounted
to MSEK 879.4 (MSEK 712.9 ). Operating profit
amounted to MSEK -241.5 (MSEK 485.5 ). Profit after
financial items amounted to MSEK -238.3 (MSEK 509.7 ).
Profit after tax amounted to MSEK -261.7 (MSEK 391.9 ).
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance
with IAS 34, Interim Financial Reporting as well as RFR
1 and the annual accounts act. The parent company
applies the Swedish Financial Reporting Board’s
recommendation RFR 2, accounting for legal entitie s.
Accounting principles and calculation bases are in
accordance with the principles applied in the

YEAR -END REPORT , JANUARY – DECEMBER 2025 13
company’s most recent annual report. The carrying
amount of the Group’s long -term financial instruments
valued at accrued acquisition value essentially
corresponds to its fair value as the interest rate is in
parity with current market interest rates. The carrying
amount of the Group’s short -term financial
instruments valued at accrued acquisition value
essentially corresponds to its fair value as the
discounting effect is not significant. Accounting
principles and calculation bases are in accordance
with t he principles applied in the company’s most
recent annual report .
RISKS AND UNCERTAINTIES
Paradox is, like most companies, exposed to certain
risks in its operations. The risks and uncertainties are
described in the Annual Report for 202 4, page 32. Risks
to be specifically mentioned include dependency on
key employees, dependency on a few sales partners,
delays of game projects, cancellations of unfinished
game projects, low revenues from game releases, and
foreign currency. These risks and uncertainties may
have a direct or indirect impact on the group’s
financial position and results.
DIVIDEND PROPOSAL
The Board proposes a dividend to shareholders of SEK
5.00 per share. The Board of Directors proposes Friday ,
May 15, 202 6 as record date. If the Annual General
Meeting approves the proposal, the dividend will be
distributed by Euroclear Sweden AB on Wednesday
May 20, 202 6.

YEAR -END REPORT , JANUARY – DECEMBER 2025 14
FINANCIAL CALENDAR
Annual Report 2025 2026 -04-09
Interim report January – March 2026 2026 -04-30
Annual General Meeting 2026 2026 -05-12
Interim Report January – June 2026 2026 -08-06
Interim Report Januar y – September 2026 2026 -10-29
Year -end report 2026 2027 -02-04
CONTACT
Additional information about the company can be
found on the corporate website
www.paradoxinteractive.com. The company can be
contacted by e -mail, ir@paradoxinteractive.com, or by
post Paradox Interactive AB, Magnus Ladulåsgatan 4,
118 66, Stockholm, Sweden .
ASSURANCE BY THE BOARD OF DIRECTORS
The Board of Directors hereby provides an assurance
that the interim report provides a true and fair view of
the parent company’s and the group’s business,
positions, and earnings, and describes the significant
risks and uncertainties faced by the companies making
up the group.
Stockholm 29 January 2026

The Board of Directors
This information is information that Paradox Interactive AB (publ) is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication 08:00 CET
29 January 202 6.

YEAR -END REPORT , JANUARY – DECEMBER 2025 15
KEY FIGURES FOR THE GROUP

For definitions of key figures, see the annual report. 2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
Revenues, KSEK 874,756 709,095 2,191,918 2,200,943
Operating profit, KSEK -245,398 395,260 145,999 721,364
Profit after financial items, KSEK -241,684 404,295 167,397 757,303
Profit after tax, KSEK -201,393 310,820 125,456 584,628
Operating margin -28% 56% 7% 33%
Profit margin -28% 57% 8% 34%
Equity/assets ratio 79% 82% 79% 82%
Equity per share before dilution, SEK 23.65 27.55 23.65 27.55
Equity per share after dilution, SEK 23.65 27.55 23.65 27.55
Earnings per share before dilution, SEK -1.91 2.94 1.19 5.54
Earnings per share after dilution, SEK -1.91 2.94 1.18 5.53
Number of shares by the end of the period before dilution 105,623,025 105,623,025 105,623,025 105,623,025
Number of shares by the end of the period after dilution 105,623,025 105,623,025 105,623,025 105,623,025
Average number of shares before dilution 105,623,025 105,623,025 105,623,025 105,623,025
Average number of shares after dilution 105,623,025 105,722,702 105,720,938 105,656,190
Average number of employees 663 574 638 587

YEAR -END REPORT , JANUARY – DECEMBER 2025 16
GROUP INCOME STATEMENT (K SEK)

OTHER COMPREHENSIVE INCOME (K SEK)

2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
Revenues 874,756 709,095 2,191,918 2,200,943
Cost of goods sold -1,000,584 -262,682 -1,656,913 -1,203,649
Gross profit -125,828 446,413 535,005 997,294
Selling expenses -84,487 -58,534 -236,076 -223,881
Administrative expenses -28,946 -25,008 -110,632 -99,653
Other income 2,662 32,883 9,253 58,294
Other expenses -8,800 -494 -51,551 -10,690
Operating profit -245,398 395,260 145,999 721,364
Financial income 4,441 9,470 23,469 42,103
Financial expense -727 -435 -2,072 -6,165
Profit after financial items -241,684 404,295 167,397 757,303
Tax 40,291 -93,475 -41,940 -172,675
Profit for the period -201,393 310,820 125,456 584,628
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK -1.91 2.94 1.19 5.54
Earnings per share after dilution, SEK -1.91 2.94 1.18 5.53 2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
Profit for the period -201,393 310,820 125,456 584,628
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences -5,699 6,002 -17,016 9,511
Other comprehensive income -5,699 6,002 -17,016 9,511
Total comprehensive income for the period -207,093 316,822 108,440 594,139
Profit for the period is attributable to the shareholders of the parent company.

YEAR -END REPORT , JANUARY – DECEMBER 2025 17
GROUP BALANCE SHEET (K SEK)

2025-12-31 2024-12-31
ASSETS
Non-current assets
Capitalised development 1,015,110 1,454,313
Licenses, brands and similar rights 105,792 52,655
Goodwill 21,790 23,137
Property and equipment 8,410 8,318
Right-of-use assets 171,591 69,679
Other long term assets 18,658 18,736
Total non-current assets 1,341,352 1,626,838
Current assets
Accounts receivable 271,185 280,056
Tax assets 91,397 62,136
Other receivables 27,143 10,466
Prepaid expenses and accrued revenue 63,272 83,498
Cash and cash equivalents 1,375,272 1,469,356
Total current assets 1,828,268 1,905,512
TOTAL ASSETS 3,169,621 3,532,350 EQUITY AND LIABILITIES
Equity
Share capital 528 528
Other capital contributed 29,748 29,748
Reserves 15,178 32,194
Retained earnings 2,452,868 2,847,170
Total equity 2,498,322 2,909,640
Long-term liabilities
Lease liabilities 137,403 33,911
Deferred tax liabilities 153,586 163,460
Total long-term liabilities 290,989 197,372
Current liabilities
Accounts payable 41,161 45,842
Current tax liabilities 782 852
Lease liabilities 27,833 30,875
Other liabilities 32,171 21,697
Accrued expenses and prepaid revenues 278,362 326,073
Total current liabilities 380,309 425,339
TOTAL EQUITY AND LIABILITIES 3,169,621 3,532,350

YEAR -END REPORT , JANUARY – DECEMBER 2025 18
CHANGE IN GROUP EQUITY (K SEK)

Share capital
Other
contributed
capital Reserves
Retained
earnings Total equity
At the beginning of the period 2025-01-01 528 29,748 32,194 2,847,170 2,909,640
Profit for the period 125,456 125,456
Other comprehensive income
Translation difference -17,016 -17,016
Total other comprehensive income – – -17,016 – -17,016
Total comprehensive income – – -17,016 125,456 108,440
Transactions with owners
Share-based payments staff – – – 8,357 8,357
Dividends – – – -528,115 -528,115
Total transactions with owners – – – -519,758 -519,758
AT THE END OF THE PERIOD 2025-12-31 528 29,748 15,178 2,452,868 2,498,322 Share capital
Other
contributed
capital Reserves
Retained
earnings Total equity
At the beginning of the period 2024-01-01 528 29,748 22,684 2,567,495 2,620,455
Profit for the period 584,628 584,628
Other comprehensive income
Translation difference 9,511 9,511
Total other comprehensive income – – 9,511 – 9,511
Total comprehensive income – – 9,511 584,628 594,139
Transactions with owners
Share-based payments staff – – – 11,915 11,915
Dividends – – – -316,869 -316,869
Total transactions with owners – – – -304,954 -304,954
AT THE END OF THE PERIOD 2024-12-31 528 29,748 32,194 2,847,170 2,909,640

YEAR -END REPORT , JANUARY – DECEMBER 2025 19
GROUP CASH FLOW STATEMENT (K SEK)

2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
Cash flow from operations
Operating profit -245,398 395,260 145,999 721,364
Adjustment of depreciation, amortisation and write-downs 883,388 115,474 1,179,774 710,513
Other adjustments 2,850 2,836 8,357 12,002
Interest received 4,441 27,575 23,469 38,705
Interest paid -727 -435 -2,072 -6,165
Tax paid -427 -62,912 -91,428 -248,071
Cash flow before changes in working capital 644,127 477,798 1,264,099 1,228,348
Changes in working capital
Change in current receivables -68,026 -30,306 14,610 112,792
Change in current liabilities -62,951 -5,695 -42,182 -217,620
Cash flow from current operations 513,150 441,797 1,236,527 1,123,520
Investing activities
Investments in capitalised development -143,587 -158,299 -605,806 -602,509
Investments in licenses, brands and similar rights – – -46,540 –
Investments in equipment -1,910 -554 -3,168 -1,161
Investments in subsidiaries – – -97,307 –
Sales of bonds – – – 200,450
Cash flow from investing activities -145,497 -158,853 -752,820 -403,220
Financing activities
Amortisation of lease liability -9,807 -9,652 -39,000 -38,300
Paid dividend – – -528,115 -316,869
Cash flow from financing activities -9,807 -9,652 -567,115 -355,169
Cash flow for the period 357,846 273,293 -83,408 365,130
Cash and cash equivalents at the beginning of the period 1,020,391 1,190,355 1,469,356 1,098,025
Exchange rate effect -2,964 5,710 -10,675 6,202
Cash and cash equivalents at the end of the period 1,375,272 1,469,356 1,375,272 1,469,356

YEAR -END REPORT , JANUARY – DECEMBER 2025 20
PARENT COMPANY INCOME STATEMENT (K SEK)
OTHER COMPREHENSIVE INCOME (KSEK)

2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
Revenues 879,387 712,932 2,196,019 2,214,766
Cost of goods sold -1,004,048 -178,863 -1,524,534 -1,499,633
Gross profit -124,661 534,068 671,484 715,133
Selling expenses -81,925 -56,337 -224,641 -208,704
Administrative expenses -28,156 -24,861 -108,674 -97,960
Other income 1,666 32,591 6,037 56,892
Other expenses -8,423 – -50,476 -9,718
Operating profit -241,499 485,461 293,730 455,642
Profit from shares in subsidiaries – 16,981 – -58,750
Financial income 3,171 7,245 18,092 36,429
Financial expense – -2 -1 -704
Profit after financial items -238,329 509,686 311,822 432,618
Year-end appropriations -75,000 -10,000 -75,000 -10,000
Tax 51,641 -107,741 -66,009 -114,716
Profit for the period -261,687 391,946 170,813 307,902 2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
Profit for the period -261,687 391,946 170,813 307,902
Other comprehensive income – – – –
Total comprehensive income for the period -261,687 391,946 170,813 307,902

YEAR -END REPORT , JANUARY – DECEMBER 2025 21
PARENT COMPANY BALANCE SHEET (KSEK)

2025-12-31 2024-12-31
ASSETS
Non-current assets
Capitalised development 954,495 984,669
Licenses, brands and similar rights 52,746 23,340
Property and equipment 2,453 1,715
Shares in subsidiaries 319,512 203,908
Other long term assets 17,393 17,393
Total non-current assets 1,346,599 1,231,024
Current assets
Accounts receivable 266,042 272,841
Receivables from group companies 10,267 198,836
Tax assets 84,309 35,600
Other receivables 19,449 5,102
Prepaid expenses and accrued revenues 69,629 89,747
Cash and cash equivalents 876,202 1,131,589
Total current assets 1,325,898 1,733,714
TOTAL ASSETS 2,672,497 2,964,738 EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 528 528
Capitalised development reserve 954,495 984,669
Non-restricted equity
Share premium reserve 29,748 29,748
Retained earnings 384,330 566,011
Profit for the period 170,813 307,902
Total equity 1,539,914 1,888,859
Untaxed reserves 695,000 755,000
Current liabilities
Accounts payable 31,676 35,954
Liabilities to group companies 164,399 22,681
Other liabilities 14,268 4,282
Accrued expenses and prepaid revenues 227,240 257,962
Total current liabilities 437,583 320,879
TOTAL EQUITY AND LIABILITIES 2,672,497 2,964,738

YEAR -END REPORT , JANUARY – DECEMBER 2025 22
NOTE S (K SEK)
NOTE 1. SEGMENT REPORTING
Group Management has determined the operating segments based on the information processed by the CEO and which is the basis f or making
strategic decisions. The operations consist of one segment.
Group revenue from clients based on where the distributor is located is divided into the following geographical areas ;

During the quarter MSEK 737.9 (MSEK 627.8 ) of the group’s revenue came from one and the same platform – Steam .
Group revenue divided into major product categories;

NOTE 2. DEPRECIATIONS, AMORTISATIONS AND WRITE -DOWNS BREAKDOWN PER FUNCTION

NOTE 3. ACQUISITION HAEMIMONT GAMES
On February 18, 2025, 100% of the shares in Haemimont Games AD, a company based in Sofia, Bulgaria, were acquired. Paradox pa id a fixed
purchase price of EUR 10.3 million. Contingent purchase considerations tied to the sellers’ continued employment, game r eleases, and achieved
sales targets may amount to a total of up to EUR 11.0 million. All contingent purchase considerations will be reported under the item cost of
goods sold as they are earned.
The acquisition is a further step in Paradox’s strategic focus on growing within the management game genre, by building stron g internal capacity
that complements the Group’s existing studio organisation.
The cash flow effect of the acquisition at the Group level is SEK -98.0 million during the reporting period, of which SEK -0.7 million related to
expensed acquisition costs is reported under administrative expenses. 2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
USA 740,594 618,596 1,872,997 1,905,078
Sweden 31,469 17,148 59,409 65,395
Rest of Europe 84,302 61,704 212,575 192,576
Rest of the World 18,391 11,647 46,937 37,893
Total 874,756 709,095 2,191,918 2,200,943 2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
PC 751,733 639,237 1,895,783 1,924,843
Console 103,229 52,492 222,911 204,225
Mobile 9,143 12,320 45,669 50,980
Other 10,651 5,046 27,555 20,895
Total 874,756 709,095 2,191,918 2,200,943 2025-10-01 2024-10-01 2025-01-01 2024-01-01
2025-12-31 2024-12-31 2025-12-31 2024-12-31
Cost of goods sold 880,640 112,592 1,168,759 698,446
Selling expenses 1,031 1,031 4,122 3,869
Administrative expenses 1,718 1,852 6,893 8,198
Total 883,388 115,474 1,179,774 710,513

YEAR -END REPORT , JANUARY – DECEMBER 2025 23
Had Haemimont been acquired on January 1, 2025, the acquisition would have contributed to an additional revenue of SEK 0.9 million and a
positive result of SEK 0.1 million. Haemimont contributed revenue of SEK 1.5 million and a result of SEK 5.6 million from the acquisition date
through December 31, 2025.
The purchase price allocation is unchanged compared to the one presented in the interim report for the first quarter of 2025 and remains
preliminary.

NOTE 4. SUBSEQUENT EVENTS
No significant events occurred after the end of the period.
2025-02-18
Cash consideration 115,604
Reported amounts of identifiable net assets
Game rights 16,817
Capitalised development 44,846
Technology related to game engines 43,863
Cash and cash equivalents 18,298
Other assets 2,597
Deferred tax liabilities 10,553 –
Other liabilities 264 –
115,604
Goodwill –

YEAR -END REPORT , JANUARY – DECEMBER 2025 24