Paradox Interactive FY2025 Q1 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 REPORT
JANUARY – MARCH 2025

INTERIM REPORT , JANUARY – MARCH 2025 2
INTERIM REPORT
JANUARY – MARCH 202 5
FIRST QUARTER
• Revenues amounted to MSEK 463. 6 ( MSEK 482.1),
a decrease by 4 % compared to the same period
last year.
• Operating profit amounted to MSEK 146. 6 ( MSEK
1 54. 4), a decrease by 5 %.
• Profit after financial items amounted to MSEK
153 .9 ( MSEK 165 .0 ), and profit after tax amounted
to MSEK 123. 7 ( MSEK 126.9).
• Cash flow from operating activities amounted to
MSEK 266. 2 ( MSEK 136.9), and cash flow from
investing activities amounted to MSEK – 217. 3
( MSEK -47. 9). Cash flow from investing activities
includes investments in shares in group
companies relating to the acquisition of
Haemimont Games, amounting to MSEK 97.3.
• By the end of the period cash amounted to MSEK
1 ,501. 5 ( MSEK 1 ,181. 8).
• Earnings per share before dilution amounted to
SEK 1 .17 (SEK 1.2 0) and after dilution SEK 1 .17
( SEK 1.20 ).
• Revenues in the quarter are mainly attributable to
Cities : Skylines, Cities: Skylines II, Crusader Kings
III, Hearts of Iron IV and Stellaris.

IMPORTANT EVENTS FIRST QUARTER
• Paradox Interactive acquired 100% of the shares in
Bulgarian development studio Haemimont Games.
• New downloadable content was released to games
during the period; Graveyard of Empires to Hearts
of Iron IV, Mediterranean Heritage and Dragon Age
to Cities: Skylines II as well as Bernard, the
Alchemist, Sigrun, the Valkyrie and Shores of Sahti
to Across the Obelisk .
• New ports to console for downloadable content
was released during the period; Wards and
Wardens to Crusader Kings III.
SUBSEQUENT EVENTS
• The publishing rights for the game Stranded: Alien
Dawn, developed by
Haemimont Games, was
purchased from Frontier Developments.

INTERIM REPORT , JANUARY – MARCH 2025 3
COMMENTS BY THE CEO
We have started 2025 with a stable course and clear
focus. Despite a quarter with fewer releases, some
currency headwinds, and investments in our future,
our core business continues to deliver strong cash
flows. This gives us the freedom to think long-term ,
act strategically – and to build on the already very
solid financial foundation we stand on.
We are following our strategy, and step by step we
see how our games are increasingly becoming
platforms – living ecosystems rather than individual
releases. That is exactly where we want to be.
A concrete step in our long -term investment in the
management genre is the acquisition of Haemimont
Games at the beginning of the year – an experienced
team with a DNA similar to our own and extensive
experience in the genre. Their creative power, team
chemistry, and strong project portfolio make them a
perfect match for our ambition to create even more
fantastic experiences for our players. We are
therefore especially pleased that after the end of the
quarter, we further strengthened our catalogue by
acqui ring the publishing rights to their latest game,
Stranded: Alien Dawn.
The release frequency during the quarter has been
low, with a focus on content for Cities: Skylines II and
Hearts of Iron IV. However, much of our effort has
gone into laying the groundwork for upcoming major
releases – and now we are ramping up. We have
a lready loaded up with expansion passes for
Crusader Kings III, Stellaris, and Victoria 3, and more
releases are coming. We’re entering the rest of the year with confidence.
We have a strong pipeline
and are looking forward to
release new major games from Paradox Interactive as
well as more experimental games from Paradox Arc.
Beneath the surface, we continue to build our
strategic position with financial discipline, creative
power, and a drive to be the best in the world at what
we do. We have an organisation that is passionate
about taking our games – and our players – to new
heights.

Fredrik Wester, CEO

INTERIM REPORT , JANUARY – MARCH 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 relationship 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 IV, 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

9
Games in pipeline
34 %
R12 profit margin
0
500
1,000
1,500
2,000
2,500
3,000
Rolling 12 months revenue Rolling 12 months operating profit
0
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400
600
800
1,000
1,200
Revenues Operating profit
Rolling 12 -month revenues and operating profit Quarterly revenues and operating profit

INTERIM REPORT , JANUARY – MARCH 2025 5
RELEASES IN THE PERIOD

HEARTS OF IRON IV: GRAVEYARD OF EMPIRES
Release date : 4 March 2025
Plat forms: PC
Pri ce: USD 14.99
Description : Navigate the difficult channel between nationalist dreams and imperial
oppression. Resist the demands of foreign great powers and claim your own place
on the world stage, engaging in diplomacy and warfare to lead a great national
rebirth in the vast lands between the Euphrates and the Gulf of Bengal.
Publisher : Paradox Interactive
Developer : Paradox Development Studio

CRUSADER KINGS III CONSOLE EDITION: WARDS & WARDENS
Release date: 5 March 202 5
Platforms: Xbox Series X|S, PlayStation 5
Price: USD 4.99
Description : Not everyone gets a carefree childhood of toys and games. Some
children have the weight of duty on their shoulders, and face years of careful
schooling and serious training, with a constant awareness of the responsibilities that
await them in adulthood. Ch ild rulers and child guardians take centre stage in a
modern strategy classic.
Publisher: Paradox Interactive
Developer: Paradox Development Studio , Dragon Lake (port)

CITIES: SKYLINES II – CREATOR PACK: MEDITERRANEAN HERITAGE
Release date: 18 March 2025
Platforms: PC
Price: USD 7.99
Description: Mediterranean Heritage’ introduces a range of historic buildings from
the 15th to 19th century from regions such as Italy, Spain, Portugal and Southern
France. Featuring fluid design and characteristic soft color variations, this pack will
bring southern E uropean elegance with a modern flair to your city.
Publisher: Paradox Interactive
Developer: Zarrix

INTERIM REPORT , JANUARY – MARCH 2025 6

CITIES: SKYLINES II – CREATOR PACK: DRAGON GATE
Release date: 18 March 2025
Plat forms: PC
Pri ce: USD 7.99
Description : With a blend of tradition and modernity . Let your citizens take a
stroll down shopping streets adorned with classic elements such as lanterns and
shop signs or visit the traditional temple that adds a touch of East Asian splendour
to your cityscape. With vibrant red and gold, ‘Dragon Gate’ will bring the fiery
charm and elegance of Chinese architecture to your city.
Publisher : Paradox Interactive
Developer : Emperor Li

ACROSS THE OBELISK: BERNARD , THE ALCHEMIST
Release date : 22 January 2025
Platforms: PC, Xbox Series X|S, PlayStation 5 , Nintendo Switch
Price: USD 4.99
Description: Bernard, the Alchemist is a Hero Pack that introduces the scout –
healer multiclass to Across the Obelisk. Devise new party compositions and create
advanced strategies thanks to Bernard’s unique class. Bernard is joined by a new
pet, Inky, his faithful octopus friend.
Publisher: Paradox Arc
Developer: Dreamsite Games

ACROSS THE OBELISK: SIGRUN, THE VALKYRIE
Release date: 22 January 2025
Platforms: PC, Xbox Series X|S, PlayStation 5 , Nintendo Switch
Price: USD 4.99
Description: Sigrun, the Valkyrie is a Hero Pack that brings the scout -mage
multiclass to Across the Obelisk for the first time. Develop new strategies using
Sigrun’s unique capabilities and reveal the secrets of her forgotten past. Sigrun is
accompanied by a new pet, Jelly, the jellyfish.
Publisher: Paradox Arc
Developer: Dreamsite Games

INTERIM REPORT , JANUARY – MARCH 2025 7

ACROSS THE OBELISK: SHORES OF SAHTI
Release date: 22 January 2025
Platforms: PC, Xbox Series X|S, PlayStation 5 , Nintendo Switch
Pri ce: USD 9.99
Description : Set sail for the Sahti Islands in this all -new pirate -themed adventure.
Powerful factions are vying for dominance in this once – peaceful archipelago. Will you
defend the indigenous people, exploit their natural resources or battle to emerge as
king of the pirates?
Publisher: Paradox Arc
Developer: Dreamsite Games

INTERIM REPORT , JANUARY – MARCH 2025 8
FINANCIAL OVERVIEW
REVENUE AND PROFIT FIRST QUARTER
Revenues amounted to MSEK 463.6 (MSEK 482.1), a
decrease of 4 % compared to the same period last
year. New downloadable content was released to
games during the period; Graveyard of Empires to
Hearts of Iron IV, Mediterranean Heritage and Dragon
Gate to Cities : Skylines II as well as Bernard, the
Alchemist, Sigrun, the Valkyrie and Shores of Sahti to
Across the Obelisk. New ports to console for
downloadable content were released during the
period; Wards and Wardens to Crusader Kings III.
Revenues for the quarter are mainly attributable to
Cities: Skylines, Cities: Skylines II, Crusader Kings III,
Hearts of Iron IV and Stellaris.
Cost of goods sold amounted to MSEK 220.9 (MSEK
268.1 ), attributable to game development,
development support, operation and maintenance of
games, costs of licenses, brands, and similar rights, as
well as royalties and revenue based earn -outs to
development studios and external rights holders.
Amortisation of released games amounted to MSEK
71.7 (MSEK 120.1). Amortisation has decreased due to
fewer and smaller releases during the quarter
compared to the comparison period .
Write -downs for the period within cost of goods sold
amount to MSEK 0.0 (MSEK 0.0 ).

Amortisations of licenses, brands, and similar rights
amounted to MSEK 1 5.6 (MSEK 13.6). In addition to depreciation, amortisation and write
–
downs within the item, a total of MSEK 125.8 (MSEK
125.9 ) was expensed regarding non -capitalised
development costs, development support, operation
and maintenance of games, royalties and revenue
based earn -outs.
Non- capitalised development costs and costs for
development support, operation and maintenance of
games increased compared to the comparison period.
Royalties and revenue -based earn -outs have
decreased compared to the comparison period .
Selling expenses for the period amounted to MSEK 47.9
(MSEK 54.7). The decrease is related to the comparison
period including costs in connection with the release
of Millennia . At the same time, sales activities for
upcoming releases have been launched.
Administrative expenses for the period amounted to
MSEK 2 5.4 (MSEK 2 6.0). Costs for administration are
generally unchanged over time and are relatively
unaffected by other operations.

Other income amounted to MSEK 2.6 (MSEK 21.7), and
other expenses to MSEK – 25.3 (MSEK -0.6). Other
income and other expenses consist primarily of
exchange rate effects on the group’s cash and cash
equivalents, operating receivables, and operating
liabilities during the quarter .
Operating profit amounted to MSEK 146.6 (MSEK
1 54.4 ).
0
50
100
150
200
250
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Write-downs
0
100
200
300
400
500
600
700
800
900
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
COGS Selling expenses Administrative expenses

INTERIM REPORT , JANUARY – MARCH 2025 9
Financial income amounted to MSEK 7.6 (MSEK 12.2)
and mainly consists of interest income from bank
accounts. Financial expenses amounted to MSEK 0. 3
(MSEK 1.7) and consists of calculated interest on lease
liabilities.
Profit after financial items amounted to MSEK 153.9
(MSEK 165.0), and profit after tax amounted to MSEK
123.7 (MSEK 126.9).
FINANCIAL POSITION
Capitalised development amounted to MSEK 1, 545.6
(MSEK 1, 521.7) by the end of the period. The item
refers to both games that have not yet been released
and games that have been released and subsequently
amortised.

Licenses, brands, and similar rights amounted to MSEK
94.6 (MSEK 94.4).
Goodwill amounted to MSEK 2 1.9 (MSEK 2 3.2)
attributable to the acquisition of Iceflake Studios.
Right -of-use assets for offices amounted to MSEK 59.8
(MSEK 98.0).
Accounts receivable amounted to MSEK 2 36.7 (MSEK
278.1 ).
Cash and cash equivalents amounted to MSEK 1, 501.5
(MSEK 1,181.8 ).
Equity amounts to MSEK 3, 023.3 (MSEK 2, 759.8).
Long -term lease liabilities amount to MSEK 23 .8 (MSEK
63.3 ) consisting of liabilities for office premises.
Deferred tax liabilities amount to MSEK 1 70.2 (MSEK
1 41.8 ), mainly relating to untaxed reserves and
intangible assets from acquisitions. Short
-term lease liabilities amount to MSEK 30. 8
(MSEK 30.3 ) consisting of short -term liabilities for
office premises.
Accrued expenses and prepaid income amount to
MSEK 280.2 (MSEK 4 04.8) by the end of the period.
Prepaid income has decreased compared to the
previous year following the releases of downloadable
content to Cities : Skylines II. Accruals for royalty to
game developers have also decreased compared to
last year.
CASH FLOW F IRST QUARTER
Cash flow from operating activities amounted to MSEK
266.2 (MSEK 136.9), primarily attributable to the
operating profit, adjusted for depreciation,
amortisation and write -downs. Cash flow from
investing activities amounted to MSEK – 217.3 (MSEK
– 47.9) and relate mainly to investments in game
development . The period’s cash flow from investing
activities includes investments in shares in group
companies regarding the acquisition of Haemimont
Games, as well as previous year’s sale of short- term
investments in bonds. Cash flow from financing
activities amounted to MSEK – 9.7 (MSEK -9.5) relating
mainly to amortisation of lease liabilities for office
premises.
RELATED PARTY TRANSACTIONS
No transactions have taken place between the group
and related parties that have affected the group’s
position and results.
PARENT COMPANY F IRST 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
pr ovides administrative services to the subsidiaries. All
in all, this leads to the parent company’s turnover to a
large extent making up the group’s total turnover.
Parent company revenues for the quarter amounted to
MSEK 461.3 (MSEK 485.7). Operating profit amounted
to MSEK 214.1 (MSEK 72.6). Profit after financial items
amounted to MSEK 220.1 (MSEK 83.0). Profit after tax
amounted to MSEK 174.8 (MSEK 61.6).
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Capitalised development costs

INTERIM REPORT , JANUARY – MARCH 2025 10
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 entities.
Accounting principles and calculation bases are in
accordance with the principles applied in the
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 the 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 a 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.

INTERIM REPORT , JANUARY – MARCH 2025 11
FINANCIAL CALENDAR
Annual General Meeting 2025 2025 -05-14
Interim report January -June 2025 2025 -08-07
Interim report January -September 2025 2025 -10-23
Year -end report 2025 2026 -01-29
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 D irectors 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 24 April 2025

The Board of Directors
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.
The information was submitted for publication 08:00 CE ST 24 April
202 5.

INTERIM REPORT , JANUARY – MARCH 2025 12
KEY FIGURES FOR THE GROUP

For definitions of key figures, see the annual report.

2025-01-01 2024-01-01 2024-01-01
2025-03-31 2024-03-31 2024-12-31
Revenues, KSEK 463,599 482,099 2,200,943
Operating profit, KSEK 146,643 154,370 721,364
Profit after financial items, KSEK 153,889 164,957 757,303
Profit after tax, KSEK 123,680 126,864 584,628
Operating margin 32% 32% 33%
Profit margin 33% 34% 34%
Equity/assets ratio 83% 78% 82%
Equity per share before dilution, SEK 28.62 26.13 27.55
Equity per share after dilution, SEK 28.62 26.13 27.55
Earnings per share before dilution, SEK 1.17 1.20 5.54
Earnings per share after dilution, SEK 1.17 1.20 5.53
Number of shares by the end of the period before dilution 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
Average number of shares before dilution 105,623,025 105,623,025 105,623,025
Average number of shares after dilution 106,014,675 105,656,009 105,656,190
Average number of employees 596 594 587

INTERIM REPORT , JANUARY – MARCH 2025 13
GROUP INCOME STATEMENT (K SEK)

OTHER COMPREHENSIVE INCOME (K SEK)

2025-01-01 2024-01-01 2024-01-01
2025-03-31 2024-03-31 2024-12-31
Revenues 463,599 482,099 2,200,943
Cost of goods sold -220,871 -268,070 -1,203,649
Gross profit 242,728 214,029 997,294
Selling expenses -47,924 -54,672 -223,881
Administrative expenses-25,438 -26,046 -99,653
Other income 2,576 21,694 58,294
Other expenses-25,300 -635 -10,690
Operating profit146,643 154,370 721,364
Financial income 7,595 12,244 42,103
Financial expense -349 -1,657 -6,165
Profit after financial items153,889 164,957 757,303
Tax -30,209 -38,093 -172,675
Profit for the period123,680 126,864 584,628
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK 1.17 1.20 5.54
Earnings per share after dilution, SEK1.17 1.20 5.53
2025-01-01 2024-01-01 2024-01-01
2025-03-31 2024-03-31 2024-12-31
Profit for the period123,680 126,864 584,628
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences -13,186 8,922 9,511
Other comprehensive income-13,186 8,922 9,511
Total comprehensive income for the period110,495 135,785 594,139
Profit for the period is attributable to the shareholders of the parent company.

INTERIM REPORT , JANUARY – MARCH 2025 14
GROUP BALANCE SHEET (KSEK)

2025-03-31 2024-03-31 2024-12-31
ASSETS
Non-current assets
Capitalised development 1,545,558 1,521,718 1,454,313
Licenses, brands and similar rights 94,563 94,428 52,655
Goodwill21,853 23,214 23,137
Property and equipment 7,416 11,659 8,318
Right-of-use assets59,782 97,954 69,679
Other long term assets18,662 18,741 18,736
Total non-current assets1,747,833 1,767,714 1,626,838
Current assets
Accounts receivable 236,728 278,098 280,056
Tax assets 29,018 7,207 62,136
Other receivables29,660 156,331 10,466
Prepaid expenses and accrued revenue78,106 88,752 83,498
Bonds – 68,247-
Cash and cash equivalents 1,501,532 1,181,826 1,469,356
Total current assets1,875,045 1,780,462 1,905,512
TOTAL ASSETS3,622,878 3,548,176 3,532,350
EQUITY AND LIABILITIES
Equity
Share capital 528 528 528
Other capital contributed29,748 29,748 29,748
Reserves19,008 31,605 32,194
Retained earnings2,973,990 2,697,927 2,847,170
Total equity3,023,275 2,759,808 2,909,640
Long-term liabilities
Lease liabilities 23,774 63,341 33,911
Deferred tax liabilities170,165 141,754 163,460
Total long-term liabilities193,939 205,095 197,372
Current liabilities
Accounts payable 38,505 74,798 45,842
Current tax liabilities18,279 13,820 852
Lease liabilities30,803 30,303 30,875
Other liabilities37,867 59,568 21,697
Accrued expenses and prepaid revenues280,211 404,783 326,073
Total current liabilities405,664 583,273 425,339
TOTAL EQUITY AND LIABILITIES3,622,878 3,548,176 3,532,350

INTERIM REPORT , JANUARY – MARCH 2025 15
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 123,680 123,680
Other comprehensive income
Translation difference-13,186 -13,186
Total other comprehensive income- –13,186 –13,186
Total comprehensive income – –13,186 123,680 110,494
Transactions with owners
Share-based payments staff – –3,140 3,140
Total transactions with owners – –3,140 3,140
AT THE END OF THE PERIOD 2025-03-31 528 29,748 19,008 2,973,990 3,023,275
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 126,864 126,864
Other comprehensive income
Translation difference8,922 8,922
Total other comprehensive income- -8,922 -8,922
Total comprehensive income – -8,922 126,864 135,785
Transactions with owners
Share-based payments staff – –3,568 3,568
Total transactions with owners – –3,568 3,568
AT THE END OF THE PERIOD 2024-03-31 528 29,748 31,605 2,697,927 2,759,808

INTERIM REPORT , JANUARY – MARCH 2025 16
GROUP CASH FLOW STATEMENT (K SEK)

2025-01-01 2024-01-01 2024-01-01
2025-03-31 2024-03-31 2024-12-31
Cash flow from operations
Operating profit
146,643 154,370 721,364
Adjustment of depreciation, amortisation and write-downs 97,901 144,808 710,513
Other adjustments
3,140 3,488 12,002
Interest received7,595 869 38,705
Interest paid -349 -1,657 -6,165
Tax paid16,857 -66,476 -248,071
Cash flow before changes in working capital271,788 235,402 1,228,348
Changes in working capital
Change in current receivables 31,714 -26,184 112,792
Change in current liabilities-37,294 -72,308 -217,620
Cash flow from current operations266,208 136,910 1,123,520
Investing activities
Investments in capitalised development-119,763 -178,241 -602,509
Investments in equipment
-239 -74 -1,161
Investments in subsidiaries-97,307 —
Sales of bonds
– 130,450 200,450
Cash flow from investing activities-217,308 -47,865 -403,220
Financing activities
Amortisation of lease liability -9,681 -9,493 -38,300
Paid dividend – –316,869
Cash flow from financing activities
-9,681 -9,493 -355,169
Cash flow for the period 39,219 79,553 365,130
Cash and cash equivalents at the beginning of the period1,469,356 1,098,025 1,098,025
Exchange rate effect
-7,043 4,249 6,202
Cash and cash equivalents at the end of the period1,501,532 1,181,826 1,469,356

INTERIM REPORT , JANUARY – MARCH 2025 17
PARENT COMPANY INCOME STATEMENT (K SEK)

2025-01-01 2024-01-01 2024-01-01
2025-03-31 2024-03-31 2024-12-31
Revenues
461,278 485,688 2,214,766
Cost of goods sold-154,831 -357,209 -1,499,633
Gross profit 306,447 128,479 715,133
Selling expenses -43,801 -51,286 -208,704
Administrative expenses-25,021 -25,717 -97,960
Other income 1,426 21,431 56,892
Other expenses-24,981 -277 -9,718
Operating profit214,071 72,630 455,642
Profit from shares in subsidiaries – –58,750
Financial income
6,011 11,063 36,429
Financial expense -0 -701 -704
Profit after financial items220,082 82,992 432,618
Year-end appropriations – –10,000
Tax
-45,309 -21,369 -114,716
Profit for the year and total income for the year174,773 61,623 307,902

INTERIM REPORT , JANUARY – MARCH 2025 18
PARENT COMPANY BALANCE SHEET (KSEK)

2025-03-31 2024-03-31 2024-12-31
ASSETS
Non-current assets
Capitalised development 1,396,225 1,131,625 984,669
Licenses, brands and similar rights 20,461 31,976 23,340
Property and equipment 1,481 4,769 1,715
Shares in subsidiaries319,512 279,742 203,908
Other long term assets 17,393 17,393 17,393
Total non-current assets1,755,072 1,465,505 1,231,024
Current assets
Accounts receivable 229,000 269,056 272,841
Receivables from group companies 24,666 1,421 198,836
Tax assets – 3,657 35,600
Other receivables24,523 131,759 5,102
Prepaid expenses and accrued revenues82,458 94,875 89,747
Bonds – 68,247-
Cash and cash equivalents 1,024,893 1,102,936 1,131,589
Total current assets1,385,540 1,671,951 1,733,714
TOTAL ASSETS3,140,612 3,137,456 2,964,738
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 528 528 528
Capitalised development reserve1,396,225 1,131,625 984,669
Non-restricted equity
Share premium reserve 29,748 29,748 29,748
Retained earnings465,498 727,574 566,011
Profit for the period174,773 61,623 307,902
Total equity2,066,772 1,951,099 1,888,859
Untaxed reserves 755,000 605,000 755,000
Current liabilities
Accounts payable 27,234 66,122 35,954
Liabilities to group companies56,948 172,705 22,681
Current tax liabilities18,128 —
Other liabilities 11,248 3,854 4,282
Accrued expenses and prepaid revenues205,282 338,677 257,962
Total current liabilities318,840 581,357 320,879
TOTAL EQUITY AND LIABILITIES3,140,612 3,137,456 2,964,738

INTERIM REPORT , JANUARY – MARCH 2025 19
NOTE S (KSEK)
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 380.5 (MSEK 380.6) 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 paid a fixed
purchase price of EUR 10.3 million. Contingent purchase considerations tied to the sellers’ continued employment, game releases, and achieved
sales targets may amount to a t otal 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 organi sation.
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.
Had Haemimont been acquired on January 1, 2025, the acquisition would have contributed revenue of SEK 0.9 million and a posit ive result of
SEK 0.1 million. Haemimont contributed revenue of SEK 0.4 million and a result of SEK – 3.0 million from the acquisition date through March 31,
2025.
2025-01-01 2024-01-01 2024-01-01
2025-03-31 2024-03-31 2024-12-31
USA
405,201 405,762 1,905,078
Sweden 9,497 18,516 65,395
Rest of Europe39,654 49,686 192,576
Rest of the World 9,247 8,135 37,893
Total463,599 482,099 2,200,943
2025-01-01 2024-01-01 2024-01-01
2025-03-31 2024-03-31 2024-12-31
PC 390,681 404,348 1,924,843
Console 49,217 57,729 204,225
Mobile13,446 13,173 50,980
Other10,256 6,849 20,895
Total463,599 482,099 2,200,943
2025-01-01 2024-01-01 2024-01-01
2025-03-31 2024-03-31 2024-12-31
Cost of goods sold 95,091 142,195 698,446
Selling expenses 1,031 889 3,869
Administrative expenses1,779 1,723 8,198
Total97,901 144,808 710,513

INTERIM REPORT , JANUARY – MARCH 2025 20

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 –

INTERIM REPORT , JANUARY – MARCH 2025 21