Paradox Interactive FY2026 Q2 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.

INTERIM R EPORT
JANUARY –JUNE 2026

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 2
INTERIM R EPORT
JANUARY –JUNE 2026
SECOND QUARTER
• Revenues amounted to MSEK 524 (MSEK 459), an
increase of 14% compared to the same period last
year.
• Operating profit amounted to MSEK 182 (MSEK
133), an increase of 37%.
• Profit after financial items amounted to MSEK
188 (MSEK 139), and profit after tax amounted to
MSEK 149 (MSEK 110).
• Cash flow from operating activities amounted to
MSEK 105 (MSEK 262), and cash flow from
investing activities amounted to MSEK -168 (MSEK
-208).
• Earnings per share before dilution amounted to
SEK 1.41 (SEK 1.04) and after dilution to SEK 1.41
(SEK 1.04).
• 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.

FIRST SIX MONTHS
• Revenues amounted to MSEK 955 (MSEK 922), an
increase of 4% compared to the same period last
year.
• Operating profit amounted to MSEK 283 (MSEK
280), an increase of 1%.
• Profit after financial items amounted to MSEK 294
(MSEK 293), and profit after tax amounted to
MSEK 235 (MSEK 234).
• Cash flow from operating activities amounted to
MSEK 413 (MSEK 528), and cash flow from
investing activities amounted to MSEK -290 (MSEK
-425).
• Earnings per share before dilution amounted to
SEK 2.22 (SEK 2.22) and after dilution to SEK 2.22
(SEK 2.21).
SIGNIFICANT EVENTS SECOND QUARTER
• New downloadable content was released for
games during the period: Songs of the Realm to
Crusader Kings III, Thunder at our Gates and Peace
for our Time to Hearts of Iron IV, Nomads to
Stellaris, Secrets of the Archmages to Age of
Wonders 4, Fate of the Ph oenix to Europa
Universalis V, Loose Cannon and The Flower & the
Flame to Vampire: The Masquerade – Bloodlines 2 .
• Paradox Interactive AB’s shares were admitted to
trading on the Nasdaq Stockholm Main Market on
9 June 2026. The listing was completed without an
offering or issuance of new shares.
• A publishing partnership was entered into with
Urban Games for the publishing of Transport Fever
3.
• A Publisher Sale was held on Steam during the
period, offering discounts across a large part of its
game catalogue.
• At the Annual General Meeting held on 12 May, Lars
Jörnow and Kaisa Salakka were elected as new
members of the Board of Directors.

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 3
COMMENTS BY THE CEO
We close the first half of the year with a strong
quarter. The result s were driven by solid catalogue
sales combined with a broad range of new content
for our established games. That is, of course, very
encouraging, but when I look back at the quarter, it is
not really the numbers that stand out to me. What
gives me the greatest confidence in th e future is what
it says about Paradox’s ability to build for the long
term.
Many years ago, our business was largely about
launching games. Today, it is about building worlds
that players want to return to for many years. When
our largest franchises continue to grow long after
launch, it confirms that this shift has been the right
one. A launch is not the end of a project. It is the
beginning of a long relationship with our players.
That is also why much of our work during the quarter
focused on continuing to develop our existing games.
New content for Crusader Kings III, Hearts of Iron IV,
Stellaris, Europa Universalis V, and others is not just
about giving players more content. It i s about
continuing to deepen the experience, create new
stories, and give players new reasons to come back. It
is a model we believe in strongly, and one that
continues to deliver.
One example that I believe illustrates our philosophy
particularly well is Hearts of Iron IV: Peace for Our
Time. The content was developed in close
collaboration with three modders from our
community. To me, it is much more than a small
content pack. It demonstrates the talent and
creativity within our player community and how we
can build even stronger game s by working more
closely with them. We believe user generated content
(UGC) is an area where we have only begun to explore
the possibilities.
We are also continuing our work on Cities: Skylines II
together with Iceflake Studios. The game did not get
the start we wanted for our players, but that never
changed our ambition. Since the beginning of the
year, a methodical improvement effort has produ ced
clear results. After the game reached a
“Mostly Positive” rating in recent Steam reviews for
the first time earlier this year, that positive
momentum continued throughout the quarter, with
more players returning and base game sales
performing well. To me, this illustrates an important
strength o f our business model. We have built a
company that can afford to take the long view and
continue investing until a game reaches the level of
quality that both we and our players expect.
In the quarter, we also entered into a new publishing
partnership for Transport Fever 3. This is a concrete
step in the expansion of our project portfolio that we
outlined earlier this year, where, alongside our own
game development, we are also strengthening our
position through publishing partnerships. The
management genre remains an area where we see
significant potential, and this title is an excellent fit
for our portfolio. It shares many of the qualities we
value: depth, high replayability , a strong modding
community, and an engaged player base. We look
forward to working with Urban Games and helping
make the series even stronger.
The quarter also marked an important milestone as
Paradox shares were admitted to trading on the
Nasdaq Stockholm Main Market on 9 June. The listing
was completed without an offering or share issue. We
do not need additional capital, and to me it is a
test ament to the stability and long -term strength we
have built. At the same time, I would like to extend a
warm welcome to Lars Jörnow and Kaisa Salakka,
who were elected to the Board of Directors at the
Annual General Meeting in May.
When I look at Paradox today, I feel a strong sense of
confidence. Over many years, we have built an
organisation with experienced development teams, a
culture shaped by long -term thinking, and a business
model that has proven its strength over time. We
cont inue to invest in our teams and in AI tools that
support our employees . Taken together this gives us
both the financial stability, and the expertise
required to develop games that engage players for
many years.

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 4

When I look at the projects now taking shape, I am
very optimistic about the future. It is not about any
single title, but about a portfolio of games with the
potential to become an important part of Paradox for
many years to come.
Finally, as is often the case, the third quarter will be
somewhat quieter than the second quarter of the
year when it comes to launching new content for our
existing games. At the same time, activity remains
high, and at Gamescom we look forward to
showcas ing several projects that our teams have
been working on for a long time. More on that this
fall.

Fredrik Wester, CEO

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 5
KEY F IGURES FOR THE GROUP

For definitions of key f igures, see the annual report
2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
Coming releases 8 9 8 9 7
Revenues, MSEK 524 459 955 922 2,192
Operating profit, MSEK 182 133 283 280 146
Profit after financial items, MSEK 188 139 294 293 167
Profit after tax, MSEK 149 110 235 234 125
Operating margin 35% 29% 30% 30% 7%
Profit margin 36% 30% 31% 32% 8%
Equity/assets ratio 76% 81% 76% 81% 79%
Cash flow from current operations, MSEK 105 262 413 528 1,237
Investments in capitalised development, MSEK -166 -161 -287 -280 -606
Capitalised development, MSEK 1,080 1,628 1,080 1,628 1,015
Cash and cash equivalents 956 1,019 956 1,019 1,375
Earnings per share before dilution, SEK 1.41 1.04 2.22 2.22 1.19
Earnings per share after dilution, SEK 1.41 1.04 2.22 2.21 1.18
Average number of shares before dilution, millions 106 106 106 106 106
Average number of shares after dilution; millions 106 106 106 106 106
Average number of employees 695 640 688 618 638

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 6
MAIN RELEASE S SECOND QUARTER
Title Date Price
USD Developer Platform
Age of Wonders 4:
Secrets of the Archmages 16 June 19.99 Triumph Studios PC, console
Crusader Kings III:
Songs of the Realm 20 April 4.99 Paradox Development Studio PC
Europa Universalis V:
Fate of the Phoenix 6 May 9.99 Paradox Tinto PC
Hearts of Iron IV:
Peace for Our Time 22 April 5.99 Paradox Development Studio, Logan
Calkins, Abbus Fung, Marijn Vroegh PC
Hearts of Iron IV:
Thunder at Our Gates 11 June 19.99 Paradox Development Studio PC
Stellaris: Nomads 15 June 24.99 Paradox Development Studio PC
Vampire: The Masquerade – Bloodlines 2:
Loose Cannon 27 April 14.99 The Chinese Room PC, console
Vampire: The Masquerade – Bloodlines 2:
The Flower & the Flame 11 June 14.99 The Chinese Room PC, console
Victoria 3: The Great Wave 28 April 29.99 Paradox Development Studio PC

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 7
FINANCIAL OVERVIEW
REVENUE AND PROFIT SECOND QUARTER
Revenues amounted to MSEK 524 (MSEK 459), an
increase of 14% since 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.
Revenue growth compared to the previous year was
primarily driven by the new games Europa Universalis
V and Vampire: The Masquerade – Bloodlines 2, both
released during the fourth quarter 2025. In addition,
Cities: Skylines II continued to perform strongly
despite the absence of new releases during the
quarter, driven by continued strong sales of the base
game following quality improvements and free
updates released over the past year.
Among the quarter’s releases, Thunder at our Gates
and Peace for our Time for Hearts of Iron IV were
significant contributors to revenue. Revenue from
Crusader Kings III , however, was, compared to the
corresponding period last year, negatively affected as
this year’s PC release, Songs of the Realm , was smaller
in scope than the expansion Khans of the Steppe
released in the comparative 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
corresponding period last year.
Cost of goods sold amounted to MSEK 259 (MSEK 232 ),
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 103
(MSEK 79). The games are generally amorti sed over 18
months using a degressive depreciation method. The
purpose of the amortisation is to provide a fair
presentation of the company’s operations and gross
profit but may contribute to volatility in the cost of
goods sold item. The increase compared to last year
was primarily driven by amorti sation of the games
Vampire: The Masquerade – Bloodlines 2 and Europa
Universalis V which were released during the fourth
quarter 2025. Amortisation of the game Surviving
Mars: Relaunched that was released in November 2025,
also contributed to the increase. At the same time,
depreciation for previously released downloadable
content for Crusader Kings III decreased.
Write -downs recogni sed in cost of goods sold for the
period amount ed to MSEK 0 (MSEK 0).
Amortisation of licenses, trademarks and similar rights
amount ed to MSEK 8 (MSEK 19). Amortisation has
decreased primarily due to the excess values arising
from the acquisition of Playrion Games Studio now
being fully amortised.
In addition to depreciation, amortisation and write –
downs within costs of goods sold , a total of MSEK 141
(MSEK 127 ) was expensed for non -capitalised
development costs, development support, operation
and maintenance of games, royalties and revenue
based earn -outs.
Non -capitali sed development costs amount ed to
MSEK 83 (MSEK 7 6). These costs relate to the
development expenses recognised as running costs
since they do not meet the Group requirements for
capitalisation . This includes costs generated in the
early stages of a project and other expenses that are
not directly attributable to specific development
projects suited for capitalisation or not expected to
generate future economic benefits.
Costs for development support, operations, and
maintenance of games amounted to MS EK 30 (MSEK
24). This item primarily refers to internal costs for
technical support and platform functions related to

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 8
the development, launch, and management of the
Group’s game portfolio.
Royalties and revenue -based contingent consideration
amounted to MSEK 28 (MSEK 26). Royalties increased
primarily due to higher sales of Cities: Skylines and
Cities: Skylines II, while expenses relating to the
revenue -based contingent consideration for Age of
Wonders 4 decreased due to the expiry of the earn -out
period in April 2026.
Selling expenses for the period amounted to MSEK 53
(MSEK 54). The decrease was primarily attributable to
lower costs related to the launch of Europa Universalis
V, while costs for other titles in the product portfolio
increased.
Administrative expenses for the period amounted to
MSEK 3 3 (MSEK 2 7). The increase compared to the
previous year was primarily driven by non -recurring
costs related to the transfer of the listing to the Nasdaq
Stockholm Main Market . Administrative expenses are
generally unchanged over time and are relatively
unaffected by other operations.
Other operating income amounted to MSEK 4 (MSEK 2)
and other operating expenses to MSEK 0 (MSEK 15).
Other operating income and other operating expenses
consist primarily of currency rate changes in the
Group’s cash and cash equivalents, operating
receivables and operating liabilities during the quarter.
Operating profit amounted to MSEK 1 82 (MSEK 133 ).
Financial income amounted to MSEK 6 (MSEK 7) and
consisted primarily of interest income from bank
accounts. Financial expenses amounted to MSEK 0
(MSEK 1 ) and consisted primarily of calculated interest
on lease liabilities.
Profit after financial items amounted to MSEK 1 88
(MSEK 139 ), and profit after tax amounted to MSEK 149
(MSEK 110 ).
FIN ANCIAL POSITION
Capitalised development expenses at the end of the
period amounted to MSEK 1,080 (MSEK 1 ,628 ). This
item relates both to games that have not yet been
completed and games that have been released and are
subsequently amortised. The decrease compared to
the previous year is mainly attributable to the releases
of Vampire: The Masquerade – Bloodlines 2 in October
2025 and Europa Universalis V in November 2025. At
the same time, capitalised development costs remain
for, among others, the announced game Prison
Architect 2. Development is also ongoing for several
unannounced games, with development costs being
capitalised on an ongoing basis, as well as for
expansions to previously released games .
Licenses, trademarks, and similar rights amounted to
MSEK 9 2 (MSEK 124 ). The item mainly relates to the
acquired publishing rights to Stranded: Alien Dawn, as
well as excess values from the acquisition of
Haemimont Games.
Goodwill amounted to MSEK 22 (MSEK 2 2), attributable
to the acquisition of Iceflake Studios.
Right -of-use assets for rental premises amounted to
MSEK 153 (MSEK 51). The increase refers to the
renewed lease agreement for the office on Södermalm,
Stockholm.
Accounts receivable at the end of the period amounted
to MSEK 253 (MSEK 199 ).
Prepaid expenses and accrued income amounted to
MSEK 262 ( MSEK 86). The increase was primarily
attributable to guarantee payments (advances) made
under a partnership agreement with an external
developer for an upcoming game. The developer has
received USD 20 million to date and, under the
agreement, will receive an additio nal USD 10 million,
payable upon the commencement of pre -orders and
when the game becomes available for download.
Cash and cash equivalents at the end of the period
amounted to MSEK 956 (MSEK 1, 019 ).
Equity amounted to MSEK 2,216 (MSEK 2,612).
Long -term lease liabilities amount to MSEK 120 (MSEK
14). The increase is due to an extension of the lease
agreement commitment for the office premises in
Södermalm, Stockholm, through the end of September
2031, replacing the current lease agreement from
October 1, 2026.
Deferred tax liabilities amounted to MSEK 153 (MSEK
167) relating to tax on untaxed reserves and intangible
assets from acquisitions.

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 9
Short -term lease liabilities amounted to MSEK 2 6
(MSEK 3 1), relating to short -term rental commitments
for office premises.
Accrued expenses and deferred income amounted to
MSEK 286 (MSEK 277 ) at the end of the period.
Provisions for royalties payable to game developers
increased compared to the previous year. Deferred
income remained in line with the previous year.
CASHFLOW SECOND QUARTER
Cash flow from operating activities for the period
amounted to MSEK 105 (MSEK 262 ), primarily
attributable to operating profit adjusted for
depreciations, amortisations and write -downs. Cash
flow from operating activities was negatively impacted
by an advance payment of MSEK 185 under the
publishing partnership entered into during the quarter.
Cash flow from investing activities amounted to MSEK –
168 (MSEK -208) and mainly relates to investments in
game development. Cash flow from financing activities
amounted to MSEK -538 (MSEK -538 ) and primarily
relate d to dividends distributed to shareholders and
repayments of lease liabilities for office premises.
FIRST SIX MONTHS IN SUMMARY
Revenue amounted to MSEK 955 (MSEK 922 ), an
increase of 4% compared to the corresponding period
last year. Cost of goods sold amounted to MSEK 524
(MSEK 4 53), relating to game development,
development support, game operations and
maintenance, as well as royalties and revenue -based
contingent consideration payable to third parties.
Impairments recognised within cost of goods sold
amounted to MSEK 0 (MSEK 0 ) during the period.
Operating profit amounted to MSEK 283 (MSEK 280 ),
an increase of 1%. Profit after financial items
amounted to MSEK 294 (MSEK 293 ), and profit after tax
amounted to MSEK 235 (MSEK 234 ). Cash flow from
operating activities amounted to MSEK 413 (MSEK
528 ). Cash flow from investing activities amounted to
MSEK -290 (MSEK -425 ). Cash flow from financing
activities amounted to MSEK -548 (MSEK -548 ).
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 SECOND 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 for the quarter
amounted to MSEK 515 (MSEK 459 ). Operating profit
amounted to MSEK 183 (MSEK 184 ). Profit after
financial items amounted to MSEK 448 (MSEK 190 ).
Profit after financial items includes dividends received
from subsidiaries of MSEK 300 (MSEK 0), as well as
impairment of shares in subsidiaries of MSEK -39
(MSEK 0). Profit after tax amounted to MSEK 409 (MSEK
148 ).
PARENT COMPANY FIRST SIX MONTHS
The parent company’s revenues for the period
amounted to MSEK 946 (MSEK 920 ). Operating profit
amounted to MSEK 296 (MSEK 398 ). Profit after
financial items amounted to MSEK 566 (MSEK 410 ).
Profit after tax amounted to MSEK 508 (MSEK 323).
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.
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 the principles applied in the company’s most
recent annual report.
SIGNIFICANT ESTIMATES AND JUDGEMENTS
In preparing the financial statements, management
and the Board of Directors are required to make
certain estimates and assumptions that affect the
carrying amounts of assets and liabilities, income and
expenses, and other information disclosed. Actual
results may differ from these estimates if the estimates

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 10
or underlying circumstances change. The significant
estimates and assumptions applied in the preparation
of this interim report are consistent with those
described in Note 4 of the 2025 Annual Report.
RISK S 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 2025, page 30. 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
The ordinary dividend of SEK 5.00 per share, resolved
upon by the Annual General Meeting on 1 2 May 2026,
was paid through Euroclear Sweden AB on 20 May
2026.
SHARE REPURCHASE PROGRAMME
At the Annual General Meeting on 1 2 May 2026, the
Board of Directors was authorised to resolve on the
repurchase of the Company’s own shares in
accordance with the proposal presented in the notice.
No share repurchases were carried out during the
reporting period.
DIVIDEND POLICY
The Company’s primary objective is to create long –
term shareholder value. Shareholder distribution will
be determined annually based on capital available
after funding organic growth initiatives, potential
acquisitions and maintaining a prudent capital
str ucture. Distributions may be made through cash
dividends and/or share repurchase program me s.

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 11
FIN ANCIAL CALENDAR
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, [email protected], or by
post Paradox Interactive AB, Magnus Ladulåsgatan 4,
118 66, Stockholm, Swede n.
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 companie s making
up the group.
Stockholm 6 August 202 6

Håkan Sjunnesson, Chairman of the Board
Fredrik Wester, CEO and Member of the Board
Mathias Hermansson, Member of the Board
Linda Höglund, Member of the Board
Lars Jörnow, Member of the Board
Gustav Palmqvist, Member of the Board
Kaisa Salakka, Member of the Board
Andras Vajlok , Member of the Board

This report has not been subject to review by the company’s
auditors.
This information is information that Paradox Interactive AB (publ) is
obliged to make public pursuant to the EU Market Abuse Regulation
and the Swedish Securities Market Act (2007:528). The information
was submitted for publication at 08:00 CEST on 6 Augus t 2026.

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 12
GROUP INCOME STATEMENT (MSEK )

OTHER COMPREHENSIVE INCOME (MSEK )

2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
Note 2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
Revenues 1 524 459 955 922 2,192
Cost of goods sold 2 -259 -232 -524 -453 -1,657
Gross profit 265 226 432 469 535
Selling expenses 2 -53 -54 -94 -102 -236
Administrative expenses 2 -33 -27 -64 -52 -111
Other income 4 2 10 5 9
Other expenses -0 -15 -1 -40 -52
Operating profit 182 133 283 280 146
Financial income 6 7 11 14 23
Financial expense -0 -1 -0 -1 -2
Profit after financial items 188 139 294 293 167
Tax -39 -29 -59 -59 -42
Profit for the period 149 110 235 234 125
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK 1.41 1.04 2.22 2.22 1.19
Earnings per share after dilution, SEK 1.41 1.04 2.22 2.21 1.18 2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
Profit for the period 149 110 235 234 125
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences 4 4 8 -9 -17
Other comprehensive income 4 4 8 -9 -17
Total comprehensive income for the period 153 114 243 225 108
Profit for the period is attributable to the shareholders of the parent company.

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 13
GROUP BALANCE SHEET (MSEK )

2026-06-30 2025-06-30 2025-12-31
ASSETS
Non-current assets
Capitalised development 1,080 1,628 1,015
Licenses, brands and similar rights 92 124 106
Goodwill 22 22 22
Property and equipment 10 7 8
Right-of-use assets 153 51 172
Other long term assets 19 19 19
Total non-current assets 1,376 1,851 1,341
Current assets
Accounts receivable 253 199 271
Tax assets 20 53 91
Other receivables 32 30 27
Prepaid expenses and accrued revenue 262 86 63
Cash and cash equivalents 956 1,019 1,375
Total current assets 1,523 1,386 1,828
TOTAL ASSETS 2,899 3,237 3,170 EQUITY AND LIABILITIES
Equity
Share capital 1 1 1
Other capital contributed 30 30 30
Reserves 23 23 15
Retained earnings 2,163 2,558 2,453
Total equity 2,216 2,612 2,498
Long-term liabilities
Lease liabilities 120 14 137
Deferred tax liabilities 153 167 154
Total long-term liabilities 272 182 291
Current liabilities
Accounts payable 64 66 41
Current tax liabilities 3 16 1
Lease liabilities 26 31 28
Other liabilities 32 54 32
Accrued expenses and prepaid revenues 286 277 278
Total current liabilities 411 444 380
TOTAL EQUITY AND LIABILITIES 2,899 3,237 3,170

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 14
CHANGE IN GROUP EQUITY (MSEK )

Share capital
Other
contributed
capital Reserves
Retained
earnings Total equity
At the beginning of the period 2026-01-01 1 30 15 2,453 2,498
Profit for the period 235 235
Other comprehensive income
Translation difference 8 8
Total other comprehensive income – – 8 – 8
Total comprehensive income – – 8 235 243
Transactions with owners
Share-based payments staff – – – 3 3
Dividends – – – -528 -528
Total transactions with owners – – – -525 -525
AT THE END OF THE PERIOD 2026-06-30 1 30 23 2,163 2,216 Share capital
Other
contributed
capital Reserves
Retained
earnings Total equity
At the beginning of the period 2025-01-01 1 30 32 2,847 2,910
Profit for the period 234 234
Other comprehensive income
Translation difference -9 -9
Total other comprehensive income – – -9 – -9
Total comprehensive income – – -9 234 225
Transactions with owners
Share-based payments staff – – – 5 5
Dividends – – – -528 -528
Total transactions with owners – – – -523 -523
AT THE END OF THE PERIOD 2025-06-30 1 30 23 2,558 2,612

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 15
G ROUP CASH FLOW STATEMENT (MSEK )

2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
Cash flow from operations
Operating profit 182 133 283 280 146
Adjustment of depreciation, amortisation and write-downs 121 108 258 206 1,180
Other adjustments 1 2 3 5 8
Interest received 6 7 11 14 23
Interest paid -0 -1 -0 -1 -2
Tax paid -41 -58 14 -41 -91
Cash flow before changes in working capital 268 191 569 463 1,264
Changes in working capital
Change in current receivables -199 30 -185 62 15
Change in current liabilities 35 41 30 3 -42
Cash flow from current operations 105 262 413 528 1,237
Investing activities
Investments in capitalised development -166 -161 -287 -280 -606
Investments in licenses, brands and similar rights – -47 – -47 -47
Investments in equipment -1 -0 -3 -1 -3
Investments in subsidiaries – – – -97 -97
Cash flow from investing activities -168 -208 -290 -425 -753
Financing activities
Amortisation of lease liability -10 -10 -19 -19 -39
Paid dividend -528 -528 -528 -528 -528
Cash flow from financing activities -538 -538 -548 -548 -567
Cash flow for the period -601 -483 -424 -444 -83
Cash and cash equivalents at the beginning of the period 1,555 1,502 1,375 1,469 1,469
Exchange rate effect 3 0 6 -7 -11
Cash and cash equivalents at the end of the period 956 1,019 956 1,019 1,375

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 16
PARENT COMPANY INCOME STATEMENT (MSEK )

OTHER COMPREHENSIVE INCOME (MSEK )

2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
Revenues 515 459 946 920 2,196
Cost of goods sold -252 -183 -508 -338 -1,525
Gross profit 263 276 439 582 671
Selling expenses -51 -52 -89 -95 -225
Administrative expenses -33 -27 -63 -52 -109
Other income 3 1 10 3 6
Other expenses – -14 – -39 -50
Operating profit 183 184 296 398 294
Profit from shares in subsidiaries 261 – 261 – –
Financial income 4 5 9 11 18
Financial expense – -0 -0 -0 -0
Profit after financial items 448 190 566 410 312
Year-end appropriations – – – – -75
Tax -39 -41 -58 -87 -66
Profit for the period 409 148 508 323 171 2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
Profit for the period 409 148 508 323 171
Other comprehensive income – – – – –
Total comprehensive income for the period 409 148 508 323 171

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 17
PARENT COMPANY BALANCE SHEET (MSEK )

2026-06-30 2025-06-30 2025-12-31
ASSETS
Non-current assets
Capitalised development 1,036 1,513 954
Licenses, brands and similar rights 45 62 53
Property and equipment 4 1 2
Shares in subsidiaries 283 320 320
Other long term assets 17 17 17
Total non-current assets 1,386 1,913 1,347
Current assets
Accounts receivable 248 190 266
Receivables from group companies 10 2 10
Tax assets 11 – 84
Other receivables 27 25 19
Prepaid expenses and accrued revenues 266 89 70
Cash and cash equivalents 719 643 876
Total current assets 1,281 949 1,326
TOTAL ASSETS 2,667 2,862 2,672 EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 1 1 1
Capitalised development reserve 1,036 1,513 954
Non-restricted equity
Share premium reserve 30 30 30
Retained earnings -51 -177 384
Profit for the period 508 323 171
Total equity 1,523 1,689 1,540
Untaxed reserves 695 755 695
Current liabilities
Accounts payable 56 45 32
Liabilities to group companies 155 113 164
Current tax liabilities – 19 –
Other liabilities 9 22 14
Accrued expenses and prepaid revenues 229 219 227
Total current liabilities 449 418 438
TOTAL EQUITY AND LIABILITIES 2,667 2,862 2,672

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 18
NOTE S (MSEK )
NOTE 1. SEGMEN T 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 reportable segment. A breakdown of revenue is presented below ;
Group revenue from clients based on where the distributor is located is divided into the following geographical areas;

During the quarter and the six -month period, MSEK 461 (MSEK 395) and MSEK 798 (MSEK 776), respectively, of the Group’s revenue was
generated through a single platform, Steam.
The Group’s revenue by major product category is presented below ;

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

NOTE 3. SUBSEQUENT EVENTS
On 5 August 2026, the Board of Directors resolved to initiate a share repurchase programme under the authorisation granted by the Annual
General Meeting on 1 2 May 2026.

2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
USA 458 392 813 797 1,873
Sweden 9 11 20 20 59
Rest of Europe 42 47 96 86 213
Rest of the World 14 9 27 18 47
Total 524 459 955 922 2,192 2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
PC 466 405 811 795 1,896
Console 46 38 117 87 223
Mobile 9 12 20 25 46
Other 3 4 8 14 28
Total 524 459 955 922 2,192 2026-04-01 2025-04-01 2026-01-01 2025-01-01 2025-01-01
2026-06-30 2025-06-30 2026-06-30 2025-06-30 2025-12-31
Cost of goods sold 118 105 253 201 1,169
Selling expenses 1 1 2 2 4
Administrative expenses 2 2 4 3 7
Total 121 108 258 206 1,180

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 19
HI STORIC FIGURES

tid.2026 2026 2025 2024 2023 2022 2021
Q2 Q1 Full year Full year Full year Full year Full year
Coming releases 8 8 7 8 9 15 14
Revenues, MSEK 524 431 2,192 2,201 2,642 1,973 1,447
Operating profit, MSEK 182 101 146 721 658 887 307
Profit after financial items, MSEK 188 106 167 757 688 884 304
Profit after tax, MSEK 149 86 125 585 531 709 248
Operating margin 35% 23% 7% 33% 25% 45% 21%
Profit margin 36% 25% 8% 34% 26% 45% 21%
Equity/assets ratio 76% 80% 79% 82% 73% 73% 66%
Cash flow from current operations, MSEK 105 309 1,237 1,124 1,452 1,085 737
Investments in capitalised development, MSEK -166 -121 -606 -603 -676 -794 -744
Capitalised development, MSEK 1,080 1,016 1,015 1,454 1,463 1,650 1,199
Cash and cash equivalents, MSEK 956 1,555 1,375 1,469 1,098 748 600
Earnings per share before dilution, SEK 1.41 0.82 1.19 5.54 5.02 6.71 2.35
Earnings per share after dilution, SEK 1.41 0.82 1.18 5.53 4.99 6.70 2.34
Average number of shares before dilution, millions 106 106 106 106 106 106 106
Average number of shares after dilution; millions 106 106 106 106 106 106 106
Average number of employees 695 681 638 587 649 672 716

PARADOX INTERACTIVE AB ( PUBL ) INTERIM REPORT JANUARY –JUNE 2026 20

Paradox Interactive is a leading developer and publisher of strategy and management games for PC
and consoles. The company’s games reach six million players every month worldwide, with its
largest markets in North America, Western Europe and Asia.
The portfolio includes popular game franchises and intellectual properties such as Age of Wonders,
Cities: Skylines, Crusader Kings, Europa Universalis, Hearts of Iron, Prison Architect, Stellaris, the
Surviving games and Victoria. Paradox Interactive also owns the intellectual property rights to the
World of Darkness universe.
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.
ABOUT PARADOX INTERACTIVE