CI Games FY2025 Annual Report
Download PDF1 | C = G A M E S C A P T = A L G R O U P – A N N U A L R E P O R T 20 25
This report is a translation of the Polish version. In case of discrepancies between the language versions, the
Polish version prevail.
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LETTER FROM THE CEO
Players First, always
2025 was a transformative year for C= Games, one defined by sustained execution, strong player engagement, and the clear
acceleration of our core franchises. Building directly on the foundation established in 2024, we delivered significant refine ments
to o ur flagship title, advanced our development pipeline with discipline and ambition, and further strengthened our position as
a company dedicated to creating high -quality, enduring experiences that resonate with players worldwide. At the heart of
everything remains Lords of the Fallen, our flagship =P, which continues to expand its passionate community and build momentum
for even greater success ahead.
Throughout 2025, we stayed true to our Players First philosophy. After the major v2.0 update, our teams delivered consistent,
high -impact content and refinements in direct response to player feedback. This commitment culminated in Version 2.5, released
in December as the final major update.
=t introduced Veteran Mode and enhanced enemy encounters across the game, delivering one of the most polished and
demanding Soulslike experiences available. These efforts demonstrated our dedication to the community long after launch. The
results were clea r: Lords of the Fallen surpassed 2 million copies sold by August 2025 and reached over 2.5 million units
worldwide by early 2026, officially breaking even on its total investment and underscoring the long -term value of our persistent
support.
This ongoing success reflects the strength of our unified studio structure and the seamless application of every lesson learn ed
across projects. All systems refined, feedback incorporated, and technical improvements from the
2023 release now flows directly into the development of Lords of the Fallen ==. The game is in full production at C= Games, built
on Unreal Engine 5 with significantly elevated production values, bolder combat, and a deeper world.
We first revealed Lords of the Fallen == with a trailer at gamescom in August 2025, which was met with huge enthusiasm from
players and the industry. This positive response was reinforced at The Game Awards in December, where our gameplay trailer
ranked among the most popular of the entire show, generating strong excitement and validating our creative direction.
=nternally, our teams operated with greater alignment and agility. The structural changes from 2024 continued to deliver bene fits,
supporting faster iteration and stronger collaboration as we scale our capabilities while preserving the creative passion tha t
defines C= Games.
On the commercial front, Lords of the Fallen continued to prove the effectiveness of authentic engagement and long -term
commitment. Steady sales growth throughout the year reinforced the resilience of our =P and the power of our transparent
approach with t he community.
=n early 2026, we successfully completed a capital raise through the issuance of new shares. This additional capital provides us
with enhanced financial flexibility and enables very clear plans to expand into broader distribution channels. These steps wi ll
allow us to reach more players and capture greater value from our upcoming releases, particularly Lords of the Fallen ==.
Our strategy remains focused and disciplined. Lords o f the Fallen is the strategic centerpiece of the company, and we are
committed to evolving it into a major, long -running franchise in video games and beyond. Development of Lords of the Fallen ==
is progressing strongly toward its 2026 release window, supported by a robust marketing campaign. We are also advancing Proje ct
: and the next installment in the Sniper Ghost Warrior franchise, alongside our broader upcoming portfolio planned for the ye ars
ahead. These efforts position us for sustained growth and d iversification.
2025 was a year of delivery and building momentum. With Lords of the Fallen stronger than ever, Lords of the Fallen == revealed
to widespread enthusiasm and now in advanced development, and our pipeline gaining strength, we enter 2026 with confidence,
alignment, and creative energy. Our commitment to players, quality, and long -term value has never been stronger.
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Thank you for your continued trust and support.
Sincerely,
Marek Tyminski
Chief Executive Officer C= Games
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AGENDA
LETTER FROM THE CEO ………………………….. ………………………….. ………………………….. ………………………….. ………………… 2
I. THE PROFILE OF CI GAMES GROUP ………………………….. ………………………….. ………………………….. ……………………… 5
II. CONSOLIDATED FINANCIAL DATA ………………………….. ………………………….. ………………………….. ……………………… 15
III. INDIVIDUAL FINANCIAL DATA ………………………….. ………………………….. ………………………….. ………………………….. . 20
IV. MANAGEMENT OF BUSINESS RISK OF THE GROUP ………………………….. ………………………….. ………………………….. 25
V. INFORMATION ON CORPORATE GOVERNANCE ………………………….. ………………………….. ………………………….. …… 32
VI. STATEMENT OF FOLLOWING CORPORATE GOVERNANCE RULES BY CI GAMES SE IN 2025 ………………………….. … 42
VII. APPROVAL OF THE MANAGEMENT REPORT FOR 2025 ………………………….. ………………………….. …………………….. 55
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I. THE PROFILE OF CI GAMES GROUP
1. General information: name, headquarters and principal activity of CI Games
C= Games Group’s parent company:
• C= Games Eu ropean Company (“the =ssuer”, “the Dominant Entity”, “the Company”, “C= Games”) was registered on
1st Hune 2007 as City =nteractive S.A. On 7th August 2013, the District Court for the Capital City of Warsaw in Warsaw, 13th
Commercial Division of the National Court Register which recorded the change of the Company’s name from the previous
name to C= Games S.A. On 17.03.2023 C= Games SE was registered in the Register of Entrepreneurs of the National Court
Register by the District Court for the Capi tal City of Warsaw in Warsaw, 13 th Commercial Division of the National Court
Register, under KRS number 0001025884.
• The registered office of the Company is located in Warsaw at Rondo =gnacego Daszyńskiego 2B.
• The core business activity of the Company consists of production, publishing and distribution of video games
• Tax identification number (N=P): 1181585759.
• Statistical identification number (REGON): 017186320.
• The Company has been established for an unlimited period of time.
2. Growth Strategy
● C= GAMES will continue to develop both new and existing =Ps with strong global commercial potential to ensure
continued financial growth.
● Continued execution of the 2025 –2028 development strategy, aimed at improving game production quality, operational
efficiency and experience, and return on prior investments.
● =n line with the adopted strategic assumptions, the Company intends to implement an annual release cadence for key
titles from 2026 through the following three years.
● The Company operates under a “player -first” philosophy, aligning both marketing and game development with player
needs and expectations, while maintaining a coherent, long -term, and sustainable financial strategy.
● C= Games develops all current and future titles using Unreal Engine 5, with each project incorporating multiplayer
components to support revenue growth and community development.
3. Market Overview
According to Newzoo , the global PC and console market has finally moved past its post -pandemic plateau. The combined market
is expected to reach $88 billion in 2025, representing year -on -year growth of 7.2%. This marks the first year of notable revenue
expansion since the pa ndemic slowdown and signals the start of a more measured growth cycle that is forecasted to reach $94
billion in 2026 and $104 billion by 2028.
A key structural shift in the market is that growth is increasingly being driven not by a sudden expansion in the player base , but by
deeper spending within existing games and ecosystems. Newzoo describes 2025 as a year in which players spent more deeply
within games and franchises they already value, reinforcing the industry’s shift toward retention, engagement depth, and long –
term monetization.
PC is the market’s standout performer, generating $43 billion 2025, growing 10.4% year on year. This is driven by a surging p layer
base in East Asia and a 17.4% jump in premium revenue. PC is on a trajectory to surpass console revenue by 2028.
Console segment generated $45 billion in 2025, with 4.2% year -on -year growth. Revenue remains highly concentrated in
blockbuster hits, with titles priced above $50 accounting for nearly 80% of premium spend. We are currently in the late stage of
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the hardware cycle; while PlayStation 5 Pro and Nintendo Switch 2 are bolstering current numbers, the industry is shifting fo cus
toward the next generation, punctuated by the recent announce of Xbox’s “Project :elix”.
Shooters remain the most popular genre on PC, followed by RPGs. Notably, engagement for games outside the Top 20 rose to 42%
in 2025, suggesting more room for success beyond the year’s biggest tentpole releases.
After years of engagement concentration on the Top 20 games, we are starting to see that growth is coming from games outside
that established group. Across Western Markets, the Revenue growth is coming from Premium Games as opposed from free -to-
play across .
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Regional dynamics are currently defined by a split between player scale in emerging markets and high spend in mature markets.
PC Leadership and Scale: China is the dominant force for PC, leading the world in both engagement and revenue for the platfor m
pri marily via the Steam platform. On a broader scale, East Asian -led player expansion is the primary driver of the PC segment’s
structural growth, which is projected to push the global PC player base past one billion. Console Revenue Drivers: Mature mar kets
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like North America and Hapan continue to generate the highest console spend. North America represents the highest Average
Revenue Per User (ARPU) and a mature market with strong uptake of premium titles.
=n summary, the global PC and console market is returning to meaningful growth and remains a stable sector. Strong forecasted
growth in PC and the mature stage of this console hardware cycle provides a great opportunity for C= Games to capitalise with high
production quality titles and where brand strength plays a critical role.
4. Our Games
„Lords of the Fallen”
“Lords of the Fallen ” is a dark fantasy action RPG released on October 13, 2023, for PC, PlayStation 5, and Xbox Series X|S,
developed using Unreal Engine 5 technology.
Throughout 2025, the title underwent sustained post -launch evolution driven by a player -first development approach, with
updates shaped directly by community feedback. This enabled continuous refinement of gameplay, accessibility, and the game’s
long -term positioning within the genre.
A key milestone was Version 2.0 ( released in April 2025), which re -established the game as a “definitive edition” through major
feature enhancements, including Full Shared Progression Co -op and the Free Friend’s Pass, alongside improvements to combat,
movement, and onboarding systems.
Version 2.0 was widely recognised as a major turning point, delivering a substantial overhaul that significantly improved pla yer and
critical perception. =t also marked a shift in the game’s narrative, demonstrating strong developer commitment and responsi veness,
and driving a resurgence in player activity, with comparisons to turnaround cases such as No Man’s Sky and Cyberpunk 2077.
This momentum culminated in Version 2.5 (December 2025), the final major update and definitive version of the game, introduci ng
refined, more aggressive combat, enhanced enemy A=, and Veteran Mode, a high -difficulty experience for core players.
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As a result, the title achieved improved player sentiment and engagement, strengthening the long -term value of the =P and
supporting future franchise development.
As of March 2026, unit sales exceeded 2.5 million, with over 6 million players worldwide. The game reached its break -even point
in February 2026, with revenues exceeding PLN 300 million, confirming a full return on investment and continued upside potenti al.
Lor ds of the Fallen II ( „Project 3” )
Development of “Lords of the Fallen == ” is progressing in line with expectations, with a planned release in 2026 across PlayStation
5, Xbox Series X|S, and PC.
The title represents the next major installment in C= Games’ dark fantasy action RPG franchise, building on the foundations o f the
2023 release. Developed with a continued player -first approach, the sequel incorporates extensive community feedback to deliv er
a more cohesive, refined, and ambitious gameplay experience.
Set approximately 1,000 years after the events of the original game, the title expands the franchise’s core pillars through a dual –
world structure, enabling players to seamlessly traverse two interconnected realms, Axiom and Umbral. The Umbral dimension is
significantly enhanced, offering a more hostile, immersive, and mechanically integrated gameplay layer.
“Lords of the Fallen == ” was officially revealed during Gamescom Opening Night Live in August 2025, marking the start of its global
marketing campaign. This was supported by early industry engagement initiatives, including closed -door presentations of pre –
alpha gameplay built in U nreal Engine 5, as well as the activation of wishlist functionality across major digital storefronts to drive
pre -launch awareness.
Further visibility was achieved at The Game Awards 2025, where the first gameplay trailer highlighted a more aggressive, visc eral
combat system and large -scale world design centered around dual -realm exploration.
=n February 2026, C= Games entered into a global distribution agreement with Plaion Gmb:. Under this agreement, C= Games
remains the publisher, while Plaion Gmb: will manage worldwide physical distribution across retail channels, in line with standard
market practices.
The title has not yet received official age ratings; however, it is expected to align with mature classifications (17+ ESRB / PEG= 18).
„Projekt H”
“Project : ” represents a new flagship action -RPG =P within a highly commercial fantasy segment. The title is being developed
leveraging the Company’s existing technological expertise, proprietary tools, and experience gained from previous productions .
Building on this foundation, the Company aims to further advance its capabilities through the integration of new technologies and
solutions, with the objective of delivering a high -quality, scalable product designed for broad international appeal.
The game is planned for release on PlayStation 5, Xbox Series X|S, and PC.
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„Sniper Ghost Warrior”
The latest installment in the Company’s first -person sniping franchise, Sniper Ghost Warrior Contracts 2, continued to deliver solid
commercial performance, crossing the 3 million unit threshold in December 2025.
The Sniper Ghost Warrior franchise remains a core pillar of C= Games’ portfolio, with total lifetime sales exceeding 17. 7 million
units globally. Since its debut in 2010, the series has established a strong position within the tactical shooter segment, di stinguished
by its focus on long -range precision gameplay, open -ended mission design, and realistic ballistics systems.
Across its evolution, the franchise has transitioned from more linear mission structures to expansive, sandbox -driven
environments, culminating in the “Contracts ” sub -series. This shift has enabled greater player freedom, replayability, and
engagement, while reinforcing the brand’s identity around authentic sniping mechanics and strategic gameplay.
The series continues to benefit from a dedicated global player base and strong recognition within its niche. C= Games is leve raging
this foundation to further develop and expand the franchise, with future iterations expected to build on its proprietary tec hnology,
refine gameplay systems, and broaden its appeal across international markets.
“Project SGW Evolved”
“Project SGW Evolved” represents the next major installment in the “Sniper Ghost Warrior” franchise, developed using Unreal
Engine 5 and planned for release on PC, PlayStation 5, and Xbox Series X|S platforms.
The title is intended to appeal to both core and broader audiences by combining the franchise’s signature first -person shooter
gameplay with elements of the survival genre.
United Label S.A.
The company continued to maximize revenues from its existing portfolio through new sales channels and commercial
opportunities.
On 28 .01. 2025 “Tai ls of =ron 2 ” was launched for PC, PS4, PS5, Xbox One, Xbox Series X/S, and Nintendo Switch. =t is s equel of
action -RPG “Tails of =ron ”, which was released on 17.09.2021.
The next planned release from United Label S.A. portfolio will be “ Tails of =ron 3” .
5. Information on seasonal or cyclical nature of business activity of the Issuer in the presented period
Due to diversified sources of revenues and the specific nature of the video games market , C= Games Capital Group is characterized
by variability of revenues from sales in the trading year, determined mainly by introduction of new products on the market.
A game production cycle at the Company is usually 12 to 36 months long. =n the case of simultaneous production of two games,
the premieres of these games feature significant asymmetric cyclicality. Thus the publishing cycle of the Company, in which n ew
gam e premiere dates are determined, is characterized by irregularity. The =ssuer establishes the dates of premiere sales of the
games to select the most favorable competitive environment, including in the context of known publishing plans of competitive
entiti es, to achieve the maximum financial benefits associated with the game release.
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As a result, it is a typical phenomenon in the entire video games sector that producers record significantly higher revenues and
profits in the period directly following the release of a new game, and a rather natural decrease in revenues in the following
months. =t is obviously an effect of high seasonality and cyclicality of activity, experienced by the video game sector aroun d the
world.
6. Products, services, sales markets, suppliers and purchasers
C= Games Group produces and publishes games for the global video game market. The Group primarily handles distribution for it s
own titles, however, in some cases, it sells licenses for software distribution in select territories at specific time.
Products of C= Games Group are available in all countries through digital distribution platforms. The share of domestic sales
increases in the years of a game release, when the largest sales are noted in the physical products category.
Structure of consolidated sales revenues of the C= Games Group in value terms:
Revenues 2025 Share (%) 2024 Share (%)
Sales of physical products 5,025 7% 1,141 1%
Digital sales 68,158 92% 79,184 98%
Other sales 599 1% 463 0
Total 73,782 100% 80,788 100%
Structure of unit sales revenues of C= Games in terms of value:
Revenues 202 5 Share (%) 202 4 Share (%)
Sales of physical products 5,482 9% (1,028) -1%
Digital sales 57,248 91% 74,952 101%
Other sales 30 0% 30 0
Total 62,760 100% 73,954 100%
Territorial distribution of sales revenue of C= Games Group per regions (in value terms ):
Consolidated Individual
Revenues 2025 2024 2025 2024
Export 73,781 80,788 63,583 73,924
share (%) 100% 100% 101% 100%
Domestic 2 0 -823 30
share (%) 0% – -1% 0
Total 73,782 80,788 62,760 73,954
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Clients whose share in C= Games stand alone and consolidated sales in 202 5 exceeded 10%:
• Valve Corporation (37% of consolidated sales value and 43% of standalone sales value) – an entity unrelated to the Group,
Steam platform for digital sales of games.
• Sony =nteractive Entertainment (34% of consolidated sales value and 33% of standalone sales value) – three legal entities
from Europe, USA, Hapan, unrelated to the Group, PlayStation platform for digital sales.
• Microsoft Corporation ( 9% of consolidated and 11 % standalone sales value) – an entity unrelated to the Group, Xbox
platform for digital sales.
The Group has a dispersed base of suppliers, none of which exceeded the 10% threshold in the value of purchases in 202 5, while
purchases from C= Games MP accounted for 52 % of gross purchases in stand -alone C= Games .
Key suppliers of the Group include d: subcontractors delivering game production components and suppliers of marketing services.
The remaining counterparties did not exceed the designated materiality level of 10%.
7. Key events in the Group in 202 5
• On 09.01.2025, the Extraordinary General Meeting of United Label S.A. adopted resolution 4/1/2025 on the withdrawal
of all shares of United Label S.A. from trading in the alternative trading system on the NewConnect market operated by
the Warsaw Stock Exch ange. =n implementation of the resolution, on 10.01.2025 the Management Board of United Label
S.A. submitted an application to the Polish Financial Supervision Authority pursuant to Article 91 section 1 of the Act of
29 Huly 2005 on public offering and con ditions for introducing financial instruments to an organised trading system and
on public companies for permission to withdraw the company’s shares from trading in the alternative trading system on
the NewConnect market operated by the Warsaw Stock Exchan ge S.A. The application concerns all shares of United Label
S.A. admitted to such trading, i.e. 1,275,000 ordinary bearer shares.
• On 28.01.2025, the premiere of the game “Tails of =ron” – “Tails of =ron 2: Whiskers of Winter” took place on all platforms
simultaneously (PC, PS4, PS5, Xbox One, Xbox Series X|S and Nintendo Switch).
• On 17.02.2025 the Extraordinary General Meeting of C= Games appointed a new member of the Supervisory Board, Mr
Nicholas Beliaeff.
• On 11.03.2025, the Management Board of the Warsaw Stock Exchange S.A. adopted a resolution on the admission and
introduction to exchange trading on the GPW parallel market as of 18.03.2025 of 7,881,865 series H ordinary bearer shares
of the Company, design ated by the National Depository for Securities S.A. with the code PLCT=NT00117. On 13.03.2025,
the National Depository for Securities S.A. issued a statement on the assimilation of 7,881,865 shares previously
designated with the =S=N code: PLCT=NT00117 wit h the remaining shares of the Company in circulation, designated with
the =S=N code: PLCT=NT00018. The series H shares were introduced to trading on 18.03.2025.
• On 21.03.2025, the =ssuer concluded with Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna with its registered
office in Warsaw three non -revolving working capital loan agreements, each in the amount of PLN 8,500,000.00 and in
the total amount of PLN 25,500,000, and annex No. 1 to the multi -purpose credit limit agreement of 10.04.2024, according
to which the credit limit was increased by PLN 9,500,000.00 to PLN 24,500,000.00, and the credit period was extended
until 09.04.2027. Details of the conclude d credit agreements are described in Chapter =V point 14.
• On 17.04.2025, C= Games released Version 2.0, the definitive edition of “Lords of the Fallen” — a major free update for
all owners on PC, PS5, and Xbox Series X|S and the culmination of over 50 post -launch updates to date. Lords of the
Fallen” back into th e spotlight, but earned it a place among the top 10 charts on both Steam and PS5, signalling a
successful global re -entry and a powerful comeback.
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• On 23.04.2025, United Label S.A. received the decision of the Polish Financial Supervision Authority dated 18.04.2025
regarding permission to withdraw from trading in the alternative trading system operated by the Warsaw Stock Exchange
S.A. 1,275,000 demat erialized ordinary bearer shares as of 30.04.2025. On 23.04.2025, United Label S.A. submitted to the
Polish Financial Supervision Authority a statement of waiver of the right to file an application for reconsideration of the
decision, in connection with wh ich on 23.04.2025 the decision became final and binding. On 28.04.2025, the Warsaw
Stock Exchange S.A. adopted resolution No. 571/2025 on the withdrawal of shares of United Label S.A. from trading on
the NewConnect market as of 30.04.2025. This means that as of 30.04.2025, United Label S.A. lost the status of a public
company and ceased to perform information obligations related to the submission of current and periodic reports, in
accordance with applicable law.
• On 21.05.2025, Member of the Supervisory Board, Mr. Heremy Michael Hames Lewis, resigned from the position of
Member of the Supervisory Board of the Company, effective May 21, 2025.
• On 27.05.2025, Mr. Florian Schuhbauer resigned from his position as a member of the Company’s Supervisory Board,
effective as of the date of the Company’s Annual General Meeting i.e. 18.06.2025.
• On 18.06.2025, the Company’s Annual General Meeting appointed Mr. Paul Schempp to the Company’s Supervisory Board
for the current joint term of office and entrusted him with the function of a Member of the Supervisory Board.
• =n August 2025, sales of “Lords of the Fallen” exceeded 2 million and amounted to 2.04 million copies, of which 1.6 million
were digital sales of the Game and 0.44 million were physical sales of the Game.
• On 19.08.2025, during Gamescom Opening Night Live, the Company announced “Lords of the Fallen ==”, the latest addition
to its portfolio. The announcement was accompanied by a world -premiere CG= trailer, showcased live to a cumulative
audience of over 72 mi llion viewers. The trailer has since generated more than 8.6 million views across YouTube and other
social media platforms.
• From August 19 –24, 2025, the Company participated in Gamescom, the world’s largest video game industry fair, with a
dedicated stand for “Lords of the Fallen ==”. The Company hosted private sessions for select industry partners and vendors,
showcasing live gameplay from a pre -alpha build of the title, which is being developed on Unreal Engine 5.
• On 25.11.2025, the Company entered into a foreign currency working capital loan agreement with Santander Bank Polska
S.A. with its registered office in Warsaw for the amount of EUR 1,700,000.00 as the first tranche of financing. The loan
was granted to finance the Company’s current business operations. The loan repayment date is 31.01.2027. Details of the
concluded credit agreement are described in Chapter =V point 14.
• On 17.12.2025, the Company entered into a foreign currency working capital loan agreement with Santander Bank Polska
S.A. with its registered office in Warsaw for the amount of EUR 2,600,000.00 as part of the second tranche of financing.
The loan was granted to finance the Company’s current business operations. The loan repayment date is 31.01.2027 .
8. Description of factors of events, with particular emphasis on extraordinary events, that influenced the
financial results achieved
Between 1 Hanuary and 31 December 2025, material events affecting the Group’s financial performance included the releases of
Version 2.0 (April) and Version 2.5 (December) of Lords of the Fallen, which significantly contributed to revenue growth in t heir
respective release months.
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9. External and internal factors impacting the Group’s development
The Group operates on the international market and is thus to a certain extent dependent on the international economy, although
the sector itself is more resilient to economic crises than other branches of the economy.
The most significant external factors that exert impact on the development of the Group include the regulatory factor, which is
associated with the current state of legal – including tax – regulations. A substantial role is also played by virtual media in promotion
of individual titles, as well as the increasing share of digital channels at the expense of the traditional distribution channels.
Moreover, video game producers are becoming increasingly competitive, which exerts direct impact on salary levels i n the sector
and recruitment and maintenance of highly qualified staff, contractors , and subcontractors.
The Company focuses its activity on projects which attract potential customers at a sufficiently large scale. Such projects include
the sequel of „Lords of the Fallen ==” („Project 3” ), “Project :” and “Sniper Ghost Warrior Evolve” .
Simultaneous implementation of several projects allows for diversification of revenues, stabilization of results in between t he
releases of own titles, as well as effective use of own resources. =n this context, it is significant to secure the financing to grow the
business of the Parent Entity and C= Games Group.
The Group intends to stand up to new challenges by leveraging its own resources and developing a network of partners. This model
will allow for much greater flexibility in decision -making and implementation of new projects.
A detailed description of factors which may influence activity of the Group, can be found in Chapter =V of this report.
10. Information about noteworthy contracts for the conduction business of CI Games Capital Group
• Binding Term Sheet with Epic Games =nc. concluded on 14.06.2024 regarding the granting by the Company to Epic the
right to exclusive global distribution of the next part of the game „Lords of the Fallen” on the PC platform for the entire
sales cycle of the product.
• Agreement with Sony =nteractive Entertainment LLC dated 01.12.2025, the subject of which is the distribution of games
from the Company’s portfolio on platforms operated by Sony =nteractive Entertainment LLC (PlayStation Plus).
• Agreement with Plaion Gmb:, with its registered office in :öfen, Austria, concluded on 25.02.2026, concerning the global
distribution of the game Lords of the Fallen ==, the subject of which is the introduction of “Lords of the Fallen ==” to the
market worldwide.
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II. CONSOLIDATED FINANCIAL DATA
1. Profitability of the business
Consolidated profit and loss account
202 5 202 4
PLN’000 EUR’000 PLN’000 EUR’000
Net revenues from sales 73,782 17,413 80,788 18,770
Costs of goods sold (40,107) (9,465) (58 332) (13 552)
Gross profit on sales 33,675 7,947 22,456 5,217
Sales margin (%) 45.6% 45.6% 27.8% 27.8%
Selling costs (19,852) (4,685) (11,702) (2,719)
General and administrative costs (13,043) (3,078) (14,098) (3,275)
Net result on other activities and net
impairment losses
1,005 237 (579) (135)
Profit (loss) from operating activities 1,785 421 (3,923) (911)
Operating margin (%) 2.4% 2.4% -4.9% -4.9%
EBITDA* 32,545 7,681 42,871 9,960
EBITDA (%) 44.1% 44.1% 53.1% 53.1%
Gross profit (loss) 4,427 1,045 (5,913) (1,374)
Gross profit (%) 6.0% 6.0% -7.3% -7.3%
Net profit (loss) 5,171 1,220 (6,614) (1,537)
Net margin (%) 7.0% 7.0% -8.2% -8.2%
*EBITDA calculated as operating profit adjusted for depreciation and amortization recognized in the Profit and Loss Account .
The year 2025 was a period without any major release, which resulted in lower revenue compared to the previous year (the last
major release took place on 13.10.2023 – the game “Lords of the Fallen”). =n 2025, “Lords of the Fallen” generated 61% of the
Grou p’s revenue. The game “Sniper Ghost Warrior Contracts 2” accounted for 14% of sales. Meanwhile, titles from the United
Label S.A. portfolio represented 14% of total sales, including the game “Tails of =ron 2” (released in Hanuary 2025), which a ccounted
for 8% of consolidated sales.
Production costs consisted of mainly amortization cost of „Lords of the Fallen” and amortization cost of rights to distribute in
United Label S.A., not capitalized production costs related „Lords of the Fallen” and engine cost .
The increase in the sales margin from 27.8% in 2024 to 45.6% in 2025 was mainly driven by a decrease in the amortization cost of
the game “Lords of the Fallen.” Additionally, in 2024, production costs included the amortization cost of an incentive plan f or
employees in the development department, whereas in 2025 this cost was not incurred.
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Selling expenses increased from PLN 11.7 million in 2024 to PLN 19.9 million in 2025, mainly due to marketing costs related t o the
game “Lords of the Fallen ==,” such as participation in the “Gamescom” trade fair, production of trailers, as well as marketi ng
activities connected with versions 2.0 and 2.5 of the game “Lords of the Fallen.”
General administrative expenses in 2025 decreased by 7.5% compared to 2024, primarily as a result of one -off costs incurred in
2024 related to the termination of the agreement with the Vice President of C= Games S.E. in Q1 2024, as well as the amortiza tion
of the incentive plan cost in the parent company in 2024.
=n 2025, the Group reported an operating profit of PLN 1.8 million. At the same time, reported EB=TDA reached PLN 32.5 millio n,
corresponding to an EB=TDA margin of 44.1%.
The Group recorded a net profit of PLN 5.2 million in 2025.
Profitability ratios
Ratio 2025 2024
Sales margin 45.6% 27.8%
EBIT margin 2.4% -4.9%
Gross margin 6.0% -7.3%
Net Margin 7.0% -8.2%
Return on assets (ROA) 1.8% -2.8%
Return on equity (ROE) 3.2% -4.2%
The sales profitability ratio (gross margin on sales) increased from 27.8% in 2024 to 45.6% in 2025. The main reason for this
improvement was a larger decrease in cost of sales (by PLN 18.3 million) compared to the decrease in sales revenue (by PLN 7 .0
million). This was primarily due to a reduction in the amortization costs of the game “Lords of the Fallen,” which is amortiz ed at
degression rate over a 5 -year period.
The operating profitability ratio improved from -4.9% in 2024 to 2.4% in 2025, despite an increase in total selling, general and
administrative expenses and other operating costs by PLN 5.5 million. This improvement was a consequence of the significant
dec rease in cost of sales described above.
Gross profitability in 2025 stood at 6.0% and was higher than operating profitability. This difference resulted from a positi ve
financial result of PLN 2.6 million, driven by positive foreign exchange differences that exceeded financial costs.
Net profitability amounted to 7.0% in 2025 and was higher than gross profitability mainly due to a positive deferred tax effe ct (PLN
5.4 million), which exceeded current tax expense (PLN 2.7 million), even after taking into account an adjustment related to prior
years (PLN 1.8 million).
Return on assets (ROA) increased from -2.8% in 2024 to 1.8% in 2025. This improvement resulted from the Group moving from a
net loss in 2024 (PLN 6.6 million) to a net profit in 2025 (PLN 5.1 million), while total assets increased from PLN 234.0 mil lion to
PLN 281.9 million. This means that despite the growth in the asset base, the Group improved the efficiency of its utilization .
Return on equity (ROE) increased from -4.2% in 2024 to 3.2% in 2025. This improvement was primarily driven by the Group moving
from a net loss in 2024 to a net profit in 2025, alongside a slight increase in equity from PLN 155.6 million to PLN 160.1 mi llio n.
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2. Balance sheet structure
Consolidated balance sheet
as of 31.12.202 5 as of 31.12.202 4
PLN’000 EUR’000 PLN’000 EUR’000
Non -current assets 251,292 59,453 209,367 48,998
Current assets 30,620 7,244 24,591 5,755
Total assets 281,912 66,698 233,958 54,753
Equity 160,687 38,017 155,637 36,423
=nitial capital 1,908 451 1,908 447
Liabilities 121,225 28,681 78,321 18,329
Non -current liabilities 11 002 2 603 48,576 11,368
Current liabilities 110 223 26 078 29,745 6,961
Total equity and liabilities 281,912 66,698 233,958 54,753
The Group’s total assets as of 31.12. 2025 amounted to PLN 281. 9 million and increased by PLN 4 8.0 million compared to the
balance at the end of 2024, as a result of an increase in both non -current assets and current assets.
Non -current assets increased by PLN 41. 9 million compared to the balance as 31.12. 2025 versus the end of the previous year. The
main factors influencing this were expenditures on ongoing projects netted against amortization of the game “Lords of the Fal len,”
as well as a decrease in deferred tax assets.
Current assets increased by PLN 6.0 million (by 2 4.5%), mainly as a result of the reclassification of employee loans from the long –
term to the short -term portion (PLN 8.5 million).
As of 31.12. 2025, total liabilities increased mainly due to advances from a distributor and bank loans taken to finance game
production, which was partially offset by a decrease in deferred tax liabilities of PLN 5. 5 million.
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Assets structure
Ratio 31.12.202 5 31.12.202 4
=ntangible assets / Assets 85.8% 80.6%
Property, plant and equipment/ Assets 0.3% 0.5%
Trade receivables / Assets 4.3% 3.7%
=nventories/ Assets 0.1% 0.2%
Cash and cash equivalents / Assets 0.7% 2.7%
Deferred income tax assets/ Assets 2.9% 3.5%
As of 31.12. 2025, the largest item in the asset structure was intangible assets amounting to PLN 241.8 million (8 5.8 % of total assets
as of 31 .12. 2025), which increased by PLN 53.2 million during the year. The main components of intangible assets were
development work in progress (PLN 200.5 million – net value) and completed development costs (PLN 3 7.1 million).
Trade receivables at the end of 2025 increased by PLN 3.5 million (by 41.3%) compared to the balance at the end of 2024, as a
result of high sales in December 2025 related to the release of version 2.5 of “Lords of the Fallen.”
As of 31 .12. 2025, cash decreased (from PLN 6.3 million to PLN 2.0 million), which resulted from expenditures on development
work, alongside lower sales levels in 2025.
At the end of 2025, deferred tax assets remained almost unchanged (decrease by PLN 74 thousand) compared to 31.12. 2024,
mainly due to release of provision for price reduction.
Structure of equity and liabilities
Ratio 31.12.202 5 31.12.202 4
Own equity 57.0% 66.5%
Long term liabilities 3.9% 20.8%
Short term liabilities 39.1% 12.7%
The Group’s equity as of 31.12. 2025 amounted to PLN 1 60.7 million (an increase of PLN 5.1 million compared to the end of the
previous year). This increase resulted from net profit of PLN 5,171 thousand.
At the same time, the share of equity in total balance sheet value decreased. This decline resulted from a growing balance sheet ,
driven by expenditures on development work, as well as a higher level of debt incurred to finance these investments.
As of 31 .12. 2025, long -term liabilities decreased from PLN 48.6 million to PLN 11.0 million mainly as a result of the reclassification
of advances from distributors to the short -term portion.
Short -term liabilities accounted for 39.1 % of balance sheet value (up from 12.7% as of 31 .12. 2024), mainly due to an increase in
bank debt (by PLN 33.4 million) and classification of distributors’ advances as a short -term portion.
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3. Cash flow
Statement of cash flow
202 5 202 4
PLN’000 EUR’000 PLN’000 EUR’000
Net cash flows from operating activities 46,050 10,868 89,520 20,798
Net cash flows from investing activities (84,897) (20,036) (77,957) (18,112)
Net cash flows from financing activities 34,590 8,163 (35,581) (8,267)
Net cash flows (4,257) (1,005) (24,018) (5,580)
=n 2025, net cash flows from operating activities amounted to PLN 46. 1 million, and the decrease was due to the fact that 2024
included cash inflows from the sales of “Lords of the Fallen” for November and December 2023 .
=n 202 5, net cash flow from investing activities amounted to PLN ( 84.9 ) million, almost the majority of which concerned
expenditures on game production – “Lords of the Fallen == ”, “Project :” and “Sniper Ghost Warrior Evolve” .
Net cash flow from financing activities amounted to PLN (3 4.6) million. This item mainly consists of drawing of new loans netted
off with payments with leasing.
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III. INDIVIDUAL FINANCIAL DATA
1. Profitability of the business
Individual profit and loss Account
202 5 202 4
PLN’000 EUR’000 PLN’000 EUR’000
Net revenues from sales 62,760 14,812 73,954 17,182
Costs of goods sold (35,707) (8,427) (55,941) (12,997)
Gross profit on sales 27,053 6,385 18,013 4,185
Sales margin (%) 43.1% 43.1% 24.4% 24.4%
Selling costs (17,664) (4,169) (9,221) (2,142)
General and administrative costs (12,701) (2,997) (13,385) (3,110)
Net result on other activities and net
impairment losses
657 155 (499) (116)
Profit (loss) from operating activities (2,655) (627) (5,092) (1,183)
Operating margin (%) -4.2% -4.2% -6.9% -6.9%
EBITDA* 25,234 5,955 41,074 9,543
EBITDA (%) 40.2% 40.2% 55.5% 55.5%
Gross profit (loss) (249) (59) (6,576) (1,528)
Gross profit (%) -0.4% -0.4% -8.9% -8.9%
Net profit (loss) 847 200 (7,381) (1,715)
Net margin (%) 1.3% 1.3% -10.0% -10.0%
*EBITDA calculated as operating profit adjusted for depreciation and amortization recognized in the Profit and Loss Account .
The year 2025 was a period without a new release, which resulted in lower revenue compared to the previous year (the last rel ease
took place on 13.10. 2023 – the game “Lords of the Fallen”). =n 2025, “Lords of the Fallen” generated 70% of C= Games’ revenue.
The game “Sniper Ghost Warrior Contracts 2” accounted for 16% of sales.
The cost of goods sold mainly included: amortization of development work related to “Lords of the Fallen”, non -capitalized
development costs for this game, and fees for the engine. The increase in sales margin from 24.4% in 2024 to 43.1% in 2025 wa s
mainly due to a decrease in the amortization cost of “Lords of the Fallen”. Additionally, in 2024, production costs included
amortization related to the incentive program for employees in the development department , while th is cost was not present in
2025.
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Selling expenses increased from PLN 9.2 million in 2024 to PLN 17.6 million in 202 5, mainly due to marketing costs related to the
game “Lords of the Fallen ==”, such as the costs of participating in the “Gamescom” trade fair, preparation of trailers, as w ell as
marketing activities related to versions 2.0 and 2.5 of “Lords of the Fallen” .
General administrative expenses in 2025 decreased by 5.1% compared to 2024, primarily as a result of one -off costs incurred in
connection with the termination of the contract with the Vice President of the Management Board in the first quarter of 2024, as
well as the amortization of the incentive program costs in 2024.
=n 202 5, the loss from operating activities amounted to PLN 2.7 million. At the same time, the reported EB=TDA reached PLN 25.2
million, which corresponds to an EB=TDA margin of 40.2 %.
The Company recorded a net profit of PLN 847 thousand in 202 5.
Profitability ratios
Ratio 2025 2024
Sales margin 43.1% 24.4%
EBIT margin -4.2% -6.9%
Gross margin -0.4% -8.9%
Net Margin 1.3% -10.0%
Return on assets (ROA) 0.3% -3.1%
Return on equity (ROE) 0.6% -4.9%
The sales profitability ratio (gross margin on sales) increased from 24.4% in 2024 to 43.1% in 2025. The main reason for this
improvement was a larger decrease in cost of sales (by PLN 20.2 million) compared to the decrease in sales revenue (by PLN 11 .2
mi llion). This was primarily due to a reduction in the amortization costs of the game “Lords of the Fallen,” which is amortized at
degressive rate over a 5 -year period.
Operating profitability improved from -6.9% to -4.2%, although it remained negative. The improvement in sales profitability was
partially offset by an increase in selling costs of PLN 8.4 million, which limited the improvement in operating profit.
Gross profitability in 2025 stood at -0.4% and was higher than operating profitability. This difference resulted from a positive
financial result of PLN 2.4 million, driven by positive foreign exchange differences that exceeded financial costs.
Net profitability amounted to 1.3% in 2025 and was higher than gross profitability mainly due to a positive deferred tax effe ct (PLN
4.8 million), which exceeded current tax expense (PLN 1.9 million), even after taking into account an adjustment related to prior
years (PLN 1.8 million).
Return on assets (ROA) increased from -3.1% in 2024 to 0.3% in 2025. This improvement resulted from the Company moving from
a net loss in 2024 (PLN 7.4 mill
