Condensed Interim Consolidated Financial Statements of the CD PROJEKT Group: Q1 2025

Key insights

6 takeaways

01
CD PROJEKT Group reported Q1 2025 revenue of 226.3 million PLN, with 94.4% of sales generated through digital distribution channels.See it on page 59
02
Net profit for Q1 2025 was 86 million PLN, representing a 14.1% year-over-year decline primarily due to a 24.1% effective tax rate impacted by prior-year withholding tax adjustments.See it on page 8
03
The company maintains a strong liquidity position with 1.49 billion PLN in cash, bank deposits, and treasury bonds, alongside 151.19 million PLN in operational cash flow.See it on page 9
04
North America remains the dominant geographic market, accounting for 72.4% of total sales, while 61% of consolidated revenue is concentrated in two major external customers.See it on page 26
05
Development resources are currently focused on long-term projects, including the next installment of The Witcher series and the upcoming Cyberpunk 2077 Ultimate Edition for the Nintendo Switch 2.See it on page 38
06
Total assets for the Group stand at 3.05 billion PLN, with equity reaching 2.86 billion PLN as of March 31, 2025.See it on page 9

Summary

The CD PROJEKT Group’s financial performance for the first quarter of 2025 demonstrates a stable revenue foundation underpinned by the continued commercial success of the Cyberpunk 2077 franchise. Total sales revenue reached 226.3 million PLN, with digital distribution channels accounting for 94.4% of this figure. North America remains the company’s most significant geographic market, representing 72.4% of total sales. While operating profit rose to 95.6 million PLN, net profit for the period was 86 million PLN, reflecting a 14.1% decline compared to the same period in 2024. This decrease is primarily attributed to a higher effective tax rate of 24.1%, influenced by adjustments related to prior-year withholding tax errors.

The company maintains a robust liquidity position, holding approximately 1.49 billion PLN in cash, bank deposits, and treasury bonds as of March 31, 2025. Total assets stand at 3.05 billion PLN, with equity reaching 2.86 billion PLN. Operational cash flow remains strong at 151.19 million PLN, supporting ongoing investment in long-term development projects, including the next installment of The Witcher series. The Group continues to operate through its two primary segments, CD PROJEKT RED and GOG.COM, while streamlining its corporate structure through the full consolidation of The Molasses Flood.

Strategic priorities for the period include the expansion of intellectual property across multiple media formats and the implementation of performance-based incentive programs for management and staff. Despite ongoing tax litigation regarding historical liabilities and a reliance on two major external customers for 61% of consolidated revenue, the Group maintains a stable outlook. With no identified threats to its going concern status, the company is moving forward with planned releases, such as the Ultimate Edition of Cyberpunk 2077 for the Nintendo Switch 2, while managing a diversified portfolio of financial instruments to ensure long-term fiscal stability.