Paradox Interactive finished the last three months of the year with a significant jump in earnings. They brought in about $99 million, a 23% increase compared to last year, thanks to strong sales of games like Age of Wonders 4, Cities: Skylines II, Crusader Kings III, as well as the new releases Europa Universalis V and Vampire: The Masquerade – Bloodlines 2.
Despite increased revenue, the company experienced an operating loss of approximately $28 million (MSEK 245.4), a significant decrease of 162% from the previous year. This loss was primarily due to lower-than-expected sales of the game Bloodlines 2.
Paradox had to reduce the value of its game by over $77 million, which turned a profitable quarter into a substantial loss.
Net profit decreased to about $22 million, compared to around $34 million the previous year. This drop was partly due to accounting changes related to the game Bloodlines 2, which also resulted in a loss per share.
Even though Paradox experienced a significant loss, the company is still in a strong financial position. They generated around $56 million in cash from their core business and finished the quarter with approximately $151 million in cash reserves. This healthy financial standing allows them to continue investing in new projects and cover their day-to-day expenses.
As a long-time fan, I was really excited to hear our CEO, Fred Wester, talk about how they’re sharpening their focus. Basically, they’re moving resources towards the areas where we truly excel and have the best chance of growing in the future. It sounds like they’re setting us up for some amazing investments and opportunities down the line!
Total sales for the year remained around $241 million, but operating profit decreased significantly, dropping 80% to $16 million. As a result, earnings per share fell from SEK 5.54 (about $0.63) to SEK 1.19 (around $0.13).
The company released Europa Universalis V, a significant new installment in the series, according to the CEO. Throughout the quarter, Paradox also continued to support its existing games with new downloadable content and updated versions. Despite a substantial loss for the quarter, the board of directors expressed confidence in the company’s future by proposing a dividend of $5 per share.
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Written by
Mike Straw
Mike has been a gaming journalist since 2012, covering major industry events and also working as an investigative reporter.
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2026-01-29 22:49