Year-End Report: January – December 2025

Paradox Interactive experienced a period of significant financial volatility throughout 2025, characterized by stagnant revenue growth and a sharp contraction in profitability. Annual revenues remained flat at MSEK 2,191.9, while operating profit plummeted to MSEK 146.0, down from MSEK 721.4 in the previous year. This decline was primarily driven by substantial write-downs and amortization costs totaling MSEK 355.3, specifically tied to the development of Vampire: The Masquerade – Bloodlines 2. Despite these headwinds, the company maintained a high volume of activity, bolstered by the release of Europa Universalis V and the strategic acquisition of Haemimont Games in February 2025 to strengthen its management game portfolio.

The company’s performance remains heavily concentrated within the PC gaming sector, with the Steam platform serving as the primary driver of quarterly revenue. While a busy release schedule contributed to a 23 percent increase in revenue during the final quarter, the associated costs resulted in an operating loss of MSEK 245.4 for that period. In response to these fiscal pressures, the organization is undergoing a strategic pivot to refocus exclusively on deep strategy and management titles developed by internal studios. This shift aims to mitigate risk by abandoning projects outside the company’s core expertise and prioritizing long-term creative control.

Despite the substantial impact of asset impairments on the bottom line, the Board of Directors has proposed a dividend of SEK 5.00 per share. This decision reflects a commitment to shareholder returns even as the company reallocates resources to stabilize its financial trajectory. Moving forward, the focus remains on leveraging internal development capabilities to restore profitability and capitalize on the established strengths of the core strategy gaming segment.