Interim Report: January-June 2026

Paradox Interactive demonstrated robust financial growth during the first half of 2026, characterized by a significant recovery in profitability and a successful transition to the Nasdaq Stockholm Main Market. Revenue for the six-month period reached MSEK 955, representing a 4% increase over the previous year, while the second quarter alone saw a 14% revenue surge to MSEK 524. This performance was underpinned by the sustained popularity of core titles such as Cities: Skylines II and Europa Universalis V, bolstered by strategic downloadable content releases. Operating margins experienced a notable expansion, climbing to 35% in the second quarter compared to 7% for the entirety of 2025, signaling improved operational efficiency and a strengthening bottom line.

The company maintains a stable financial foundation, holding MSEK 956 in cash and cash equivalents as of mid-2026. While cash flow from operating activities moderated to MSEK 413 from the previous year’s MSEK 528, the firm continued to prioritize shareholder value through a dividend payment of SEK 5.00 per share and the initiation of a share repurchase program in August 2026. These financial maneuvers occur alongside long-term operational commitments, including the extension of office leases through 2031.

Geographically and segmentally, the business remains heavily concentrated in the PC gaming market, with the Steam platform serving as the primary driver of global sales. By successfully navigating the transition to the Nasdaq Stockholm Main Market in June 2026, the company has solidified its corporate standing while continuing to leverage its established intellectual property to drive consistent revenue growth. These results reflect a period of stabilization and strategic reinvestment, positioning the firm to capitalize on its existing catalogue while managing capital allocation to support long-term shareholder interests.