Paradox Interactive FY2025 Q3 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 – SEPTEMBER 2025

INTERIM REPORT , JANUARY – SEPTEMBER 2025 2
INTERIM REPORT
JANUARY – SEPTEMBER 2025
THIRD QUARTER
• Revenues amounted to MSEK 395.0 (MSEK 434.0 ),
a decrease of 9 % compared to the same period
last year.
• Operating profit amounted to MSEK 111.8 (MSEK
142.8 ), a decrease of 22%.
• Profit after financial items amounted to MSEK
116.3 (MSEK 151.2), and profit after tax amounted
to MSEK 92.9 (MSEK 119.7).
• Cash flow from operating activities amounted to
MSEK 195.2 (MSEK 153.7), and cash flow from
investing activities amounted to MSEK – 182.4
( MSEK – 115.3). Cash flow from financing activities
amounted to MSEK – 9.8 (MSEK – 9.6) .
• At the end of the period, cash and cash
equivalents amounted to MSEK 1, 020.4 (MSEK
1, 190.4).
• Earnings per share before dilution amounted to
SEK 0.88 (SEK 1.13) and after dilution to SEK 0.88
(SEK 1.13).
• Revenues for the quarter are primarily
attributable to Age of Wonders 4, Cities: Skylines,
Cities: Skylines II, Crusader Kings III, Hearts of Iron
IV, Stellaris and Victoria 3.

IMPORTANT EVENTS THIRD QUARTER
• New downloadable content was released for
games during the period : Shadows of the Shroud
to Stellaris, Archon Prophecy to Age of Wonders 4,
National Awakening to Victoria 3, Coronations to
Crusader Kings III as well as Shops of Shibuya and
Map Pack 4 to Cities: Skylines.
• Steam Summer Sale took place during the period.
FIRST NINE MONTHS
• Sales amounted to MSEK 1,3 17.2 ( MSEK 1, 491.8 ), a
decrease of 12 % from the previous year.
• Operating profit amounted to MSEK 391.4 (MSEK
326.1 ), an increase of 20 %.
• Profit after financial items amounted to MSEK
409.1 (MSEK 353.0), and profit after tax amounted
to MSEK 326.8 (MSEK 273.8).
• Earnings per share before dilution amounted to
MSEK 3.09 (MSEK 2.59) and after dilution to MSEK
3.09 (MSEK 2.59) .

INTERIM REPORT , JANUARY – SEPTEMBER 2025 3
COMMENTS BY THE CEO
The third quarter has been characterised by a high
pace in preparing for what will likely be the most
intense period in Paradox’s history. In the fourth
quarter we will launch two new titles and one
remaster, as well as content to most of our core
games: a testament to both our breadth and our
development capacity.
Like previous years, the number of releases has been
fewer in the third quarter, which together with a
stronger Swedish krona has had a dampening effect
on revenues. Simultaneously the period has been
marketing intense with campaigns for our coming
releases . In total it affects the quarter ’s results but
strengthens our position for the important period
that now awaits.
Victoria 3 and Age of Wonders 4 continue to
strengthen their positions as long -term Paradox
franchises. Both games have received new content in
the quarter, with further content planned before
year -end. The players ’ engagement and the reception
of the latest updates strengthen our conviction that
these titles will create value for many years to come.
On 21 October we launched Vampire: The
Masquerade – Bloodlines 2. It is a project that was
initiated in a different era, when the company had a
different strategic direction and that is outside of our
actual core business. The development process has
been long , which makes it especially gratifying that
the game is now in the hands of our players. The
release is very close to this report, so it is still too
early to provide a comment on performance ; we
follow the game’s reception closely and are hard at
work with post- launch support .
Outside of the releases we have lined up, we continue
our efforts to strengthen Paradox in the long term,
both commercially and in terms of development
capability. Commercially, w e continue to refine our
pricing, to continuously review how we package our
games and expansions and are continually exploring
new partnerships. Our work with Expansion Passes is
an example of how we are creating clearer value
propositions over time. At the same time, we continue to seek growth opportunities in new
markets where our brands have the potential to
grow.

On the development side, we are strengthening our
presence in the management genre – an area where
we continue to see great potential. Iceflake Studios
has built up solid expertise over several years, and
together with Haemimont Games we now have a
solid b ase to broaden our portfolio of core games in
line with our long -term strategy.
At the same time, the industry in general continues to
be challenging, especially for smaller actors. This
creates pathways for Paradox to act as a stable
partner, and we continually receive new prospects to
leverage our financial strength when evaluating
external projects and collaborations .
We have a lot to look forward to. In the coming
quarter, we will launch several major games, not
least of which is Europa Universalis V in two weeks
time, and our teams are working hard to provide the
experiences that we know our players are craving.
With creativity, commercial acumen, and financial
stability, we continue to take steps forward – towards
a strong future for Paradox.

Fredrik Wester, CEO

INTERIM REPORT , JANUARY – SEPTEMBER 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

8
Games in pipeline
4 0 %
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
200
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 – SEPTEMBER 2025 5
RELEASES IN THE PERIOD

STELLARIS: SHADOWS OF THE SHROUD
Release date : 22 September 2025
Plat forms : PC
Pri ce: USD 19.99
Description : The Psionic Plane is vast and full of perils. Shadows of the Shroud is the
ultimate expansion for those who seek to master the unknown behind the veil,
offering a complete overhaul of the Psionic Ascension Path. Moral actions, patron
allegiances, and the e ver-present risk of total annihilation will now shape your
connection to the entities that live on the other side.
Publisher : Paradox Interactive
Developer : Paradox Development Studio, Abrakam

AGE OF WONDER 4: ARCHON PROPHECY
Release date: 12 August 202 5
Platforms: PC, Xbox Series X|S, PlayStation 5
Price: USD 24.99
Description : Take command of the forces of light in the Age of Wonders 4: Archon
Prophecy expansion. Join the celestial Archons as they strike back against Urrath’s
corrupt forces. Consult the oracles, glimpse hidden prophecies that shape the fates
of the realms and be come the master of your own destiny. Contains a new culture,
story content, and society traits.
Publisher: Paradox Interactive
Developer: Triumph Studios

VICTORIA 3: NATIONAL AWAKENING
Release date: 23 September 2025
Platforms: PC
Price: USD 9.99
Description: A century of national struggles in Central Europe and the Balkans take
center stage. The Ottoman Empire is losing its grip on its European territories while
its Austrian rival is riven by internal political struggles – some ideological and some
nationalist . Explore the tumult of the tinderbox of Europe in this immersion pack.
Publisher: Paradox Interactive
Developer: Paradox Development Studio

INTERIM REPORT , JANUARY – SEPTEMBER 2025 6

CRUSADER KINGS III: CORONATIONS
Release date: 9 September 2025
Plat forms : PC
Pri ce: USD 4.99
Description : Assemble your vassals to witness the consecration of a new ruler
with the Coronations Event Pack. Take an oath and declare the vision of the ruler
you aspire to be. Will you maintain your promise of protection and prosperity for
all, or break your word and face the displeasure of your subjects? It is your time to
step up as a ruler!
Publisher : Paradox Interactive
Developer : Paradox Development Studio

CITIES: SKYLINES – CREATOR PACK: SHOPS OF SHIBUYA
Release date : 24 September 202 5
Platforms: PC, Xbox One, Xbox Series X|S, Play Station 4, PlayStation 5
Price: USD 5.99
Description: Discover one of Japan’s most iconic districts with “Shops of
Shibuya” created by community creator ‘Stop it D’. This Content Creator Pack
brings the broad selection of the area to your city, with sleek storefronts, bustling
boulevards, and tucked – away side streets known only to locals and fashion-
forward visitors. Featuring a mix of low and high – density commercial buildings,
unique buildings, and parks, this pack captures the energy of a trendy fashion
district.
Publisher: Paradox Interactive
Developer: Stop it D

CITIES: SKYLINES – CREATOR PACK: MAP PACK 4
Release date: 24 September 202 5
Platforms: PC, Xbox One, Xbox Series X|S, PlayStation 4, PlayStation 5
Price: USD 5.99
Description: Expand your horizons with “Map Pack 4” from the community
creator Uncle Ron. This Content Creator Pack introduces new maps, each inspired
by iconic rivers, dramatic landscapes, and breathtaking coastlines. From tropical
archipelagos to alpine fjords, these maps and 10 new intersections let you create
your next city in a unique but realistic setting.
Publisher: Paradox Interactive
Developer: Uncle Ron

INTERIM REPORT , JANUARY – SEPTEMBER 2025 7
FINANCIAL OVERVIEW
REVENUE AND PROFIT THIRD QUARTER
Revenues amounted to MSEK 395.0 (MSEK 434.0), a
decrease of 9% compared to the same period last year.
New downloadable content was released for games
during the period: Shadows of the Shroud to Stellaris,
Archon Prophecy to Age of Wonders 4, National
Awakening to Victoria 3, Coronations to Crusader Kings
III as well as Shops of Shibuya and Map Pack 4 to Ci ties:
Skylines. Revenues for the quarter are primarily
attributable to Age of Wonders 4, Cities: Skylines,
Cities: Skylines II, Crusader Kings III, Hearts of Iron IV,
Stellaris and Victoria 3. The change in revenue is
strongly correlated with variation in the releases that
occur. The decrease in revenue is partly explained by
the fact that the reference period included revenue
from the major $30 expansion Roads to Power for
Crusader Kings III. At the same time, the decline is
offset by this quarter’s releases of the Archon Prophecy
expansion for Age of Wonders 4 and National
Awakening for Victoria 3, games that had no release
during the comparison period.
The Group’s revenue is mainly in currencies other than
SEK and is therefore exposed to exchange rate
fluctuations. The quarter’s revenue has been
negatively affected by the exchange rate development
of the strengthened krona compared to the same
period last year.
Cost of goods sold amounted to MSEK 203.3 ( MSEK
217.1 ), 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 71.2
( MSEK 96. 0). The games are generally amorti sed over
18 months, usually using a degressive depreciation
method. The purpose of the amortisation is to provide
a fair view of the company’s operations and gross
profit but may contribute to volatility in the cost of
goods sold item. The decrease is driven by, among
other things, reduced amortisation of Millennia, Star
Trek: Infinite and Crusader Kings III. Write
-downs for the period within cost of goods sold
amounts to MSEK 0.0 ( MSEK 0.0).

Amorti sation of licenses, trademarks and similar rights
amounts to MSEK 9.1 ( MSEK 13. 8). Amortisation has
decreased as a result of the amorti sation of excess
values from the acquisition of Playrion Games Studio
now being fully amorti sed. At the same time, the
decrease is offset by new amorti sations related to the
acquired publishing rights for Stranded: Alien Dawn, as
well as amorti sations of excess values from the
acquisition of Haemimont Games.
In addition to depreciation, amortisation and write –
downs within the item, a total of MSEK 1 15.7 (MSEK
1 00.1 ) was expensed regarding non -capitalised
development costs, development support, operation
and maintenance of games, royalties and revenue
based earn -outs.
Non- capitali sed development costs are in line with the
previous year. Costs for development support,
operations, and maintenance of games have increased
compared to the reference period, mainly as a result of
a minor reorgani sation between the development
studio and the publisher’s operations and
maintenance services.
Royalties and revenue- based contingent consideration
have increased compared to the previous year, mainly
driven by Age of Wonders 4, where the sellers of
Triumph Studios receive a revenue- based contingent
consideration until April 2026.
0
50
100
150
200
250
Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
Write-downs

INTERIM REPORT , JANUARY – SEPTEMBER 2025 8
Selling expenses for the period amounted to MSEK 49.8
( MSEK 44.2). The increase is a result of higher costs
ahead of the upcoming releases of Europa Universalis
V and Vampire: The Masquerade – Bloodlines 2.
Administrative expenses for the period amounted to
MSEK 29.2 ( MSEK 22.1). The increase compared to the
previous year mainly relates to items of a non –
recurring nature. Administrative expenses are
generally unchanged over time and are relatively
unaffected by other operations.

Other operating income amounted to MSEK 2.0 ( MSEK
1.7) and other operating expenses to MSEK -2.9 ( MSEK
– 9.4). Other operating income and other operating
expenses consist primarily of foreign exchange rate
movements on the Group’s cash and cash equivalents,
operating receivables and operating liabilities during
the quarter.
Operating profit amounted to MSEK 111.8 (MSEK 142.8).
Financial income amounted to MSEK 4.7 ( MSEK 9.2)
and consists primarily of interest income from bank
accounts. Financial expenses amounted to MSEK 0. 3
( MSEK 0.8) and consists primarily of estimated interest
on lease liabilities.
Profit after financial items amounted to MSEK 116.3
( MSEK 151.2), and profit after tax amounted to MSEK
92.9 ( MSEK 119.7 ).
FINANCIAL POSITION
Capitalised development expenses at the end of the
period amounted to M SEK 1,738.2 (M SEK 1,387.3). The
item relates to both games that have not yet been
completed and games that have been released and are
subsequently amorti sed. The single largest game activation relates to Vampire: T
he Masquerade –
Bloodlines 2, where development has been ongoing
since 2016. Vampire: T he Masquerade – Bloodlines 2
was released in October 2025. The announced titles
Europa Universalis V and Prison Architect 2 also
account for a significant portion of the item. Develop –
ment is also ongoing for a number of unannounced
games that are activated on an ongoing basis, as well
as expansions to previously released games.

Licenses, trademarks and similar rights amounted to
MSEK 114.7 ( MSEK 65.8). The increase relates to the
acquired publishing rights to Stranded: Alien Dawn, as
well as surplus values from the acquisition of
Haemimont Games. At the end of the period, the
excess values from the acquisition of Playrion Games
are fully amortised.
Goodwill amounted to MSEK 22. 3 (MSEK 22. 8),
attributable to the acquisition of Iceflake Studios.
Right -of-use assets for rental premises amounted to
MSEK 181.1 ( MSEK 78.9). The increase refers to the
renewed lease agreement on Södermalm , Stockholm.
Accounts receivable at the end of the period amounted
to MSEK 185.1 ( MSEK 202.7).
Cash and cash equivalents at the end of the period
amounted to MSEK 1,020.4 ( MSEK 1,190.4).
Long -term lease liabilities amount to MSEK 14 4.4
( MSEK 43.6), relating to rental commitments for office
premises. The current lease agreement on Södermalm
in Stockholm expires at the end of September 2026
and was renewed shortly before the end of the quarter.
Deferred tax liabilities amount to MSEK 166.7 ( MSEK
135.4 ) relating to tax on untaxed reserves and
intangible assets from acquisitions.
0
100
200
300
400
500
600
700
800
900
Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
COGS Selling expenses Administrative expenses
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
Capitalised development costs

INTERIM REPORT , JANUARY – SEPTEMBER 2025 9
Short -term lease liabilities amount to MSEK 30.8
( MSEK 30. 6), relating to short -term rental
commitments for office premises.
Accrued expenses and prepaid income at the end of
the period amount to MSEK 303.9 (MSEK 290.7 ).
Prepaid income is in line with the previous year, where
the releases of downloadable content for Cities:
Skylines II have led to a decrease in the item, while
prepaid income for Europa Universalis V and Vampire:
The Masquerade – Bloodlines 2 has increased. Accruals
for royalties to game developers have increased
compared to the previous year.
CASH FLOW THIRD QUARTER
Cash flow from operating activities for the period
amounted to MSEK 195.2 (MSEK 153.7 ), primarily
attributable to operating profit adjusted for
depreciations, amortisations and write-downs . Cash
flow from investing activities amounted to MSEK – 182.4
( MSEK – 115.3) and mainly relates to investments in
game development . Cash flow from financing activities
amounted to MSEK – 9.8 (MSEK – 9.6) relating to
amorti sation of lease liabilities for office premises.
FIRST NINE MONTHS IN SUMMARY
Revenues amounted to MSEK 1,317.2 (MSEK 1, 491.8), a
decrease of 1 2% compared to the same period last
year. Cost of goods sold amounted to MSEK 656.3
( MSEK 941.0), attributable to game development,
development support, operation and maintenance of
games, as well as royalties and revenue -based
contingent considerations to third parties. Write –
downs for the period within cost of goods sold
amounted to MSEK 0.0 ( MSEK 208.0). Operating profit
amounted to MSEK 391.4 (MSEK 326.1 ), an increase of
20 %. Profit after financial items amounted to MSEK
409.1 (MSEK 353.0), and profit after tax amounted to
MSEK 326.8 (MSEK 273.8). Cash flow from operating
activities amounted to MSEK 723.4 (MSEK 681.7). Cash
flow from investing activities amounted to MSEK – 607.3
( MSEK – 244.4). Cash flow from financing activities
amounted to MSEK – 557.3 (MSEK – 3 45.5).
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 THIRD 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 revenues to a
large extent making up the group’s total revenues .
The parent company’s revenues in quarter amounted
to MSEK 396.4 (MSEK 437.6). Operating profit
amounted to MSEK 1 37.0 (MSEK 35.2). Profit after
financial items amounted to MSEK 1 40.5 (MSEK – 32.7).
Profit after tax amounted to MSEK 1 09.5 (MSEK – 42.6).
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance
with IAS 34, Interim Financial Reporting as well as RFR
1 and the annual accounts act. The parent company
applies the Swedish Financial Reporting Board’s
recommendation RFR 2, accounting for legal entitie s.
Accounting principles and calculation bases are in
accordance with the principles applied in the
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 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 – SEPTEMBER 2025 10
FINANCIAL CALENDAR
Year -end report 2025 2026 -01-29
Annual Report 2025 2026 -04-09
Interim report January – March 2026 2026 -04-30
Annual General Meeting 2026 2026 -05-12
Interim Report January – June 2026 2026 -08-06
Interim Report Januar y – September 2026 2026 -10-29
Year -end report 2026 2027 -02- 04
CONTACT
Additional information about the company can be
found on the corporate website
www.paradoxinteractive.com. The company can be
contacted by e -mail, ir@paradoxinteractive.com, or by
post Paradox Interactive AB, Magnus Ladulåsgatan 4,
118 66, Stockholm, Sweden .
ASSURANCE BY THE BOARD OF DIRECTORS
The Board of 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 23 October 2025

The Board of Directors
This information is information that Paradox Interactive AB (publ) is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication 08:00 CE ST
23 October 2025.

INTERIM REPORT , JANUARY – SEPTEMBER 2025 11
THE AUDITOR’S REVIEW OF
I NTERIM FINANCIAL
INFORMATION
Introduction
We have conducted a limited review of the condensed
interim financial information (interim report) for
Paradox Interactive AB (publ) as of September 30,
2025, and the nine -month period ending on that date.
The board of directors and the managing director are
responsible for preparing and presenting this interim
report in accordance with IAS 34 and the Swedish
Annual Accounts Act. Our responsibility is to express a
conclusion on this interim report based on our limited
review.
Scope of Review
We have conducted our limited review in accordance
with the International Standard on Review
Engagements ISRE 2410, “Review of Interim Financial
Information Performed by the Independent Auditor of
the Entity.” A limited review consists of making
inquiries, primarily of persons responsible for financial
and accounting matters, performing analytical
procedures, and other review procedures. A limited
review has a different focus and a significantly smaller
scope compared to the focus and scope of an audit
conducted in accordance with ISA and generally
accepted auditing standards. The review procedures
taken in a limited review do not enable us to obtain the
assurance that we would become aware of all
significant matters that might have been ide ntified in
an audit. Therefore, the conclusion expressed based
on a limited review does not have the assurance that a
conclusion expressed based on an audit has. Conclusion

Based on our limited review, nothing has come to our
attention that causes us to believe that the interim
report is not, in all material respects, prepared for the
group in accordance with IAS 34 and the Annual
Accounts Act and for the parent company in
accordance with the Annual Accounts Act.
Stockholm October 23, 2025
Öhrlings PricewaterhouseCoopers AB

Aleksander Lyckow
A uthorized Public Accountant

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

For definitions of key figures, see the annual report.

2025-07-01 2024-07-01 2025-01-01 2024-01-01 2024-01-01
2025-09-30 2024-09-30 2025-09-30 2024-09-30 2024-12-31
Revenues, KSEK 394,962 433,994 1,317,162 1,491,848 2,200,943
Operating profit, KSEK 111,785 142,838 391,398 326,105 721,364
Profit after financial items, KSEK 116,263 151,228 409,081 353,007 757,303
Profit after tax, KSEK 92,859 119,661 326,849 273,808 584,628
Operating margin 28% 33% 30% 22% 33%
Profit margin 29% 35% 31% 24% 34%
Equity/assets ratio 78% 80% 78% 80% 82%
Equity per share before dilution, SEK 25.59 24.52 25.59 24.52 27.55
Equity per share after dilution, SEK 25.59 24.52 25.59 24.52 27.55
Earnings per share before dilution, SEK 0.88 1.13 3.09 2.59 5.54
Earnings per share after dilution, SEK 0.88 1.13 3.09 2.59 5.53
Number of shares by the end of the period before dilution 105,623,025 105,623,025 105,623,025 105,623,025 105,623,025
Number of shares by the end of the period after dilution 105,623,025 105,623,025 105,623,025 105,623,025 105,623,025
Average number of shares before dilution 105,623,025 105,623,025 105,623,025 105,623,025 105,623,025
Average number of shares after dilution 105,623,025 105,623,025 105,753,575 105,634,020 105,656,190
Average number of employees 654 584 630 591 587

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

OTHER COMPREHENSIVE INCOME (K SEK)

2025-07-01 2024-07-01 2025-01-01 2024-01-01 2024-01-01
2025-09-30 2024-09-30 2025-09-30 2024-09-30 2024-12-31
Revenues 394,962 433,9941,317,162 1,491,848 2,200,943
Cost of goods sold
-203,297 -217,092-656,329-940,967 -1,203,649
Gross profit
191,665 216,902660,833550,881 997,294
Selling expenses
-49,791 -44,239-151,589 -165,347 -223,881
Administrative expenses
-29,229 -22,121-81,686-74,645 -99,653
Other income
2,021 1,7216,59125,412 58,294
Other expenses
-2,881 -9,425-42,750 -10,196 -10,690
Operating profit
111,785 142,838391,398326,105 721,364
Financial income
4,734 9,18819,027 32,633 42,103
Financial expense
-256 -798-1,344 -5,730 -6,165
Profit after financial items
116,263 151,228409,081353,007 757,303
Tax
-23,405 -31,566-82,232-79,199 -172,675
Profit for the period
92,859 119,661326,849273,808 584,628
Profit for the period is attributable to the shareholders of the parent company.
Earnings per share before dilution, SEK
0.88 1.133.092.59 5.54
Earnings per share after dilution, SEK
0.88 1.133.092.59 5.53
2025-07-01 2024-07-01 2025-01-01 2024-01-01 2024-01-01
2025-09-30 2024-09-30 2025-09-30 2024-09-30 2024-12-31
Profit for the period
92,859 119,661326,849273,808 584,628
Other comprehensive income
Items that may be reclassified to profit or loss
Translation differences
-2,197 -2,996-11,317 3,509 9,511
Other comprehensive income
-2,197 -2,996-11,317 3,509 9,511
Total comprehensive income for the period
90,662 116,665315,533277,317 594,139
Profit for the period is attributable to the shareholders of the parent company.

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

2025-09-30 2024-09-30 2024-12-31
ASSETS
Non-current assets
Capitalised development 1,738,240 1,387,301 1,454,313
Licenses, brands and similar rights 114,688 65,835 52,655
Goodwill 22,271 22,761 23,137
Property and equipment 7,189 8,486 8,318
Right-of-use assets181,103 78,923 69,679
Other long term assets 18,686 18,715 18,736
Total non-current assets2,082,178 1,582,020 1,626,838
Current assets
Accounts receivable 185,107 202,667 280,056
Tax assets 71,544 104,891 62,136
Other receivables28,608 56,729 10,466
Prepaid expenses and accrued revenue79,858 102,422 83,498
Cash and cash equivalents1,020,391 1,190,355 1,469,356
Total current assets1,385,508 1,657,064 1,905,512
TOTAL ASSETS3,467,685 3,239,084 3,532,350
EQUITY AND LIABILITIES
Equity
Share capital 528 528 528
Other capital contributed29,748 29,748 29,748
Reserves20,877 26,192 32,194
Retained earnings2,651,411 2,533,513 2,847,170
Total equity2,702,565 2,589,982 2,909,640
Long-term liabilities
Lease liabilities 144,425 43,636 33,911
Deferred tax liabilities166,698 135,422 163,460
Total long-term liabilities311,123 179,058 197,372
Current liabilities
Accounts payable 50,718 43,804 45,842
Current tax liabilities 8,589 40,112 852
Lease liabilities30,764 30,625 30,875
Other liabilities60,013 64,819 21,697
Accrued expenses and prepaid revenues303,914 290,684 326,073
Total current liabilities453,998 470,045 425,339
TOTAL EQUITY AND LIABILITIES3,467,685 3,239,084 3,532,350

INTERIM REPORT , JANUARY – SEPTEMBER 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 326,849 326,849
Other comprehensive income
Translation difference-11,317 -11,317
Total other comprehensive income- –11,317 –11,317
Total comprehensive income – –11,317 326,849 315,533
Transactions with owners
Share-based payments staff – –5,507 5,507
Dividends – —528,115 -528,115
Total transactions with owners – —522,608 -522,608
AT THE END OF THE PERIOD 2025-09-30 528 29,748 20,877 2,651,411 2,702,565
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 273,808 273,808
Other comprehensive income
Translation difference3,509 3,509
Total other comprehensive income- -3,509 -3,509
Total comprehensive income – -3,509 273,808 277,316
Transactions with owners
Share-based payments staff – –9,080 9,080
Dividends – —316,869 -316,869
Total transactions with owners – —307,790 -307,790
AT THE END OF THE PERIOD 2024-09-30 528 29,748 26,192 2,533,513 2,589,982

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

2025-07-01 2024-07-01 2025-01-01 2024-01-01 2024-01-01
2025-09-30 2024-09-30 2025-09-30 2024-09-30 2024-12-31
Cash flow from operations
Operating profit
111,785 142,838391,398326,105 721,364
Adjustment of depreciation, amortisation and write-downs 90,332 121,031296,386595,039 710,513
Other adjustments
343 1,9195,5079,165 12,002
Interest received
4,734 9,18819,027 11,130 38,705
Interest paid
-256 -798-1,344 -5,730 -6,165
Tax paid
-50,221 -58,242-91,002-185,159 -248,071
Cash flow before changes in working capital
156,717 215,936619,972750,550 1,228,348
Changes in working capital
Change in current receivables
21,088 18,59282,636143,098 112,792
Change in current liabilities
17,401 -80,86220,769-211,925 -217,620
Cash flow from current operations
195,206 153,666723,377681,722 1,123,520
Investing activities
Investments in capitalised development -181,746 -114,982-462,219-444,211 -602,509
Investments in licenses, brands and similar rights – –46,540 —
Investments in equipment
-689 -311 -1,258 -606 -1,161
Investments in subsidiaries – –97,307 —
Sales of bonds
– –200,450 200,450
Cash flow from investing activities
-182,435 -115,293-607,323-244,367 -403,220
Financing activities
Amortisation of lease liability
-9,803 -9,600-29,193 -28,649 -38,300
Paid dividend
– –528,115 -316,869 -316,869
Cash flow from financing activities
-9,803 -9,600-557,308 -345,518 -355,169
Cash flow for the period 2,968 28,773-441,254 91,838 365,130
Cash and cash equivalents at the beginning of the period 1,018,566 1,164,1931,469,3561,098,025 1,098,025
Exchange rate effect
-1,144 -2,611-7,712 492 6,202
Cash and cash equivalents at the end of the period
1,020,391 1,190,3551,020,3911,190,355 1,469,356

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

2025-07-01 2024-07-01 2025-01-01 2024-01-01 2024-01-01
2025-09-30 2024-09-30 2025-09-30 2024-09-30 2024-12-31
Revenues
396,402 437,5581,316,632 1,501,834 2,214,766
Cost of goods sold
-182,210 -333,686-520,486-1,320,770 -1,499,633
Gross profit
214,192 103,872796,145181,064 715,133
Selling expenses
-47,221 -38,779-142,716 -152,368 -208,704
Administrative expenses
-28,853 -21,750-80,518-73,099 -97,960
Other income
1,472 1,2974,37124,301 56,892
Other expenses
-2,637 -9,441-42,053 -9,718 -9,718
Operating profit
136,953 35,199535,229 -29,819 455,642
Profit from shares in subsidiaries
– -75,731–75,731 -58,750
Financial income
3,568 7,82914,922 29,184 36,429
Financial expense
-0 -0-1-702 -704
Profit after financial items
140,521 -32,702550,150 -77,068 432,618
Year-end appropriations
– —-10,000
Tax
-31,030 -9,885-117,650 -6,975 -114,716
Profit for the year and total income for the year
109,491 -42,587432,500 -84,044 307,902

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

2025-09-30 2024-09-30 2024-12-31
ASSETS
Non-current assets
Capitalised development 1,655,015 944,286 984,669
Licenses, brands and similar rights 56,590 26,219 23,340
Property and equipment 1,177 2,021 1,715
Shares in subsidiaries319,512 204,011 203,908
Other long term assets 17,393 17,393 17,393
Total non-current assets2,049,687 1,193,930 1,231,024
Current assets
Accounts receivable 178,785 196,517 272,841
Receivables from group companies 7,846 30,748 198,836
Tax assets – 101,158 35,600
Other receivables24,059 51,369 5,102
Prepaid expenses and accrued revenues82,062 106,236 89,747
Cash and cash equivalents619,976 950,076 1,131,589
Total current assets912,727 1,436,103 1,733,714
TOTAL ASSETS2,962,413 2,630,033 2,964,738
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital 528 528 528
Capitalised development reserve1,655,015 944,286 984,669
Non-restricted equity
Share premium reserve 29,748 29,748 29,748
Retained earnings-319,041 603,557 566,011
Profit for the period 432,500 -84,044 307,902
Total equity1,798,751 1,494,077 1,888,859
Untaxed reserves 755,000 605,000 755,000
Current liabilities
Accounts payable 35,188 31,722 35,954
Liabilities to group companies81,617 256,841 22,681
Current tax liabilities 8,551 —
Other liabilities 33,806 4,160 4,282
Accrued expenses and prepaid revenues249,502 238,233 257,962
Total current liabilities408,662 530,956 320,879
TOTAL EQUITY AND LIABILITIES2,962,413 2,630,033 2,964,738

INTERIM REPORT , JANUARY – SEPTEMBER 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 340.8 (MSEK 370.4) 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. EMPLOYEE STOCK OPTIONS PROGRAM 2025/2029
The annual general meeting on May 1 4, 2025 , decided to introduce an employee stock option program aimed at employees in the group. A total
of 52 5,000 options were subscribed with the right to subscribe for an equal number of shares in Paradox Interactive AB (publ). At the end of the
period, the number of outstanding employee options amounted to 5 05,000.
Allotted employee options were issued free of charge at a market value of SEK 21.96 according to a valuation based on the Black & Scholes
model. The exercise price for the options was set at SEK 2 25.81, and subscription of shares is expected to take place 30 days after the publication
of the company’s Interim Report for the second quarter of 2028 , the third quarter of 2028, and the first quarter of 202 9 respectively. The exercise
price corresponded to 120% of the average share price during the period April 24 to April 30, 202 5. Vesting of options is conditional on continued
employment in the company. Personnel -related costs excluding social security contributions for the program amount to MSEK 0.9 (MSEK 0.0)
during the year. If these options are fully subscribed, the parent company’s equity will be increased by MSEK 1 14.0.
2025-07-01 2024-07-01 2025-01-01 2024-01-01 2024-01-01
2025-09-30 2024-09-30 2025-09-30 2024-09-30 2024-12-31
USA
335,473 377,281 1,132,403 1,286,482 1,905,078
Sweden 7,501 14,291 27,940 48,247 65,395
Rest of Europe41,824 34,593 128,273 130,873 192,576
Rest of the World10,164 7,829 28,546 26,246 37,893
Total394,962 433,994 1,317,162 1,491,848 2,200,943
2025-07-01 2024-07-01 2025-01-01 2024-01-01 2024-01-01
2025-09-30 2024-09-30 2025-09-30 2024-09-30 2024-12-31
PC 348,769 380,180 1,144,050 1,285,606 1,924,843
Console 32,264 38,111 119,682 151,732 204,225
Mobile11,182 12,143 36,526 38,660 50,980
Other 2,747 3,560 16,904 15,849 20,895
Total394,962 433,994 1,317,162 1,491,848 2,200,943
2025-07-01 2024-07-01 2025-01-01 2024-01-01 2024-01-01
2025-09-30 2024-09-30 2025-09-30 2024-09-30 2024-12-31
Cost of goods sold 87,615 117,081288,119585,855 698,446
Selling expenses
1,031 1,0313,0922,839 3,869
Administrative expenses
1,687 2,9195,1756,346 8,198
Total
90,332 121,031296,386595,039 710,513

INTERIM REPORT , JANUARY – SEPTEMBER 2025 20
NOTE 4. ACQUISITION HAEMIMONT GAMES
On February 18, 2025, 100% of the shares in Haemimont Games AD, a company based in Sofia, Bulgaria, were acquired. Paradox pa id a fixed
purchase price of EUR 10.3 million. Contingent purchase considerations tied to the sellers’ continued employment, game r eleases, and achieved
sales targets may amount to a total of up to EUR 11.0 million. All contingent purchase considerations will be reported under the item cost of
goods sold as they are earned.
The acquisition is a further step in Paradox’s strategic focus on growing within the management game genre, by building stron g internal capacity
that complements the Group’s existing studio organisation.
The cash flow effect of the acquisition at the Group level is SEK – 98.0 million during the reporting period, of which SEK -0.7 million related to
expensed acquisition costs is reported under administrative expenses.
Had Haemimont been acquired on January 1, 2025, the acquisition would have contributed to an additional revenue of SEK 0.9 million and a
positive result of SEK 0.1 million. Haemimont contributed revenue of SEK 1.0 million and a result of SEK 3.0 million from the acquisition date
through September 30 , 2025.
The purchase price allocation is unchanged compared to the one presented in the interim report for the first quarter of 2025 and remains
preliminary.

NOTE 5. SUBSEQUENT EVENTS
The new game Vampire: The Masquerade – Bloodlines 2, developed by The Chinese Room, was released for PC and consoles.

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 – SEPTEMBER 2025 21