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2025 was a strange year for Paradox Interactive, a publisher which had already spent some time refocusing its efforts around strategy games and trying to fix underwhelming releases like the second Cities Skylines. Now, we have confirmation via its year-end report that Vampire: The Masquerade – Bloodlines 2 marked the company’s lowest point while wins like Europa Universalis V gave it some breathing room.
Those who have been keeping tabs on Paradox’s performance over the years won’t be surprised by the news, and we aren’t either, but it’s good to have more solid data on its ups and downs. A presentation livestream hosted by Fredrik Wester, CEO, and Alexander Bricca, CFO, will be happening today, January 29, at 12:00 PM CET. For now, we can look at the key points that have been shared with a press release:
FOURTH QUARTER
Revenues amounted to MSEK 874.8 (MSEK 709.1), an increase of 23% compared to the same period last year. Operating profit amounted to MSEK -245.4 (MSEK 395.3), a decrease of 162%. The operating profit includes amortisation and write-downs of Vampire: The Masquerade – Bloodlines 2, amounting to MSEK 345.7 (MSEK 0.0) and MSEK 355.3 (MSEK 0.0), respectively. Profit after financial items amounted to MSEK -241.7 (MSEK 404.3), and profit after tax amounted to MSEK -201.4 (MSEK 310.8). Cash flow from operating activities amounted to MSEK 513.2 (MSEK 441.8), and cash flow from investing activities amounted to MSEK –145.5 (MSEK -158.9). Cash flow from financing activities amounted to MSEK -9.8 (MSEK -9.7). At the end of the period, cash and cash equivalents amounted to MSEK 1,375.3 (MSEK 1,469.4). Earnings per share before dilution amounted to SEK -1.91 (SEK 2.94) and after dilution to SEK -1.91 (SEK 2.94). Revenues for the quarter are primarily attributable to Age of Wonders 4, Cities: Skylines, Cities: Skylines II, Crusader Kings III, Europa Universalis V, Hearts of Iron IV, Stellaris, Vampire: The Masquerade – Bloodlines 2, and Victoria 3.
IMPORTANT EVENTS IN THE FOURTH QUARTER
The new game Europa Universalis V, developed by Paradox Tinto, was released to PC. The new game Vampire: The Masquerade – Bloodlines 2, developed by The Chinese Room, was released to PC and console. New downloadable content was released for games during the period: All Under Heaven to Crusader Kings III, No Compromise, No Surrender to Hearts of Iron IV, Bridges & Ports, Supply Chains and Skyscrapers to Cities: Skylines II, Thrones of Blood to Age of Wonders 4, Necropolis of the Damned to Across the Obelisk, Infernals to Stellaris and Iberian Twilight to Victoria 3. New ports of downloadable content were released during the period: Legends of the Dead to Crusader Kings III and The Machine Age to Stellaris. A remaster of the game Surviving Mars, developed by Haemimont Games, was released during the period. Steam Winter Sale and Steam Autumn Sale took place during the period. The Board proposes an ordinary dividend of SEK 5.00 (SEK 3.00) per share, and a special dividend of SEK 0.00 (SEK 2.00) per share.
FULL YEAR
Sales amounted to MSEK 2,191,9 (MSEK 2,200.9), a decrease of 0% from the previous year. Operating profit amounted to MSEK 146.0 (MSEK 721.4), a decrease of 80%. Profit after financial items amounted to MSEK 167.4 (MSEK 757.3), and profit after tax amounted to MSEK 125.5 (MSEK 584.6). Earnings per share before dilution amounted to SEK 1.19 (SEK 5.54) and after dilution to SEK 1.18 (SEK 5.53).
Worth underlining here is the remarkably busy Q4, the “most intense” in the company’s history according to the press release. Bloodlines 2’s financial performance has dealt a massive flow to the operating profit, mainly due to the write-down we reported on a while back. On the other hand, titles like Age of Wonders 4, Cities Skylines, Crusader Kings, and the latest Europa Universalis have been performing well and highlight where Paradox’s strengths lie.
“We are now strengthening our strategic focus, reallocating resources, and creating even better conditions for future investments where we have our greatest expertise and long-term potential,” Wester commented after acknowledging the disappointment of Bloodlines 2 and its impact on Paradox’s 2025 performance. He also had glowing praise for Paradox Tinto’s EU5, which will no doubt be a cornerstone of the publisher’s near-future plans.
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