Interim report January – September 2025

THIRD QUARTER

• Revenues amounted to MSEK 395.0 (MSEK 434.0), a decrease of 9% compared to the same period last year.
• Operating profit amounted to MSEK 111.8 (MSEK 142.8), a decrease of 22%.
• Profit after financial items amounted to MSEK 116.3 (MSEK 151.2), and profit after tax amounted to MSEK 92.9 (MSEK 119.7).
• Cash flow from operating activities amounted to MSEK 195.2 (MSEK 153.7), and cash flow from investing activities amounted to MSEK -182.4 (MSEK -115.3). Cash flow from financing activities amounted to MSEK -9.8 (MSEK -9.6).
• At the end of the period, cash and cash equivalents amounted to MSEK 1,020.4 (MSEK 1,190.4).
• Earnings per share before dilution amounted to SEK 0.88 (SEK 1.13) and after dilution to SEK 0.88 (SEK 1.13).
• Revenues for the quarter are primarily attributable to Age of Wonders 4, Cities: Skylines, Cities: Skylines II, Crusader Kings III, Hearts of Iron IV, Stellaris and Victoria 3.

IMPORTANT EVENTS IN THE THIRD QUARTER

• New downloadable content was released for games during the period: Shadows of the Shroud to Stellaris, Archon Prophecy to Age of Wonders 4, National Awakening to Victoria 3, Coronations to Crusader Kings III as well as Shops of Shibuya and Map Pack 4 to Cities: Skylines.
• Steam Summer Sale took place during the period.

FIRST NINE MONTHS

• Sales amounted to MSEK 1,317.2 (MSEK 1,491.8), a decrease of 12% from the previous year.
• Operating profit amounted to MSEK 391.4 (MSEK 326.1), an increase of 20%.
• Profit after financial items amounted to MSEK 409.1 (MSEK 353.0), and profit after tax amounted to MSEK 326.8 (MSEK 273.8).
• Earnings per share before dilution amounted to MSEK 3.09 (MSEK 2.59) and after dilution to MSEK 3.09 (MSEK 2.59).

COMMENTS BY THE CEO

The third quarter has been characterised by a high pace in preparing for what will likely be the most intense period in Paradox's history. In the fourth quarter we will launch two new titles and one remaster, as well as content to most of our core games: a testament to both our breadth and our development capacity.

Like previous years, the number of releases has been fewer in the third quarter, which together with a stronger Swedish krona has had a dampening effect on revenues. Simultaneously the period has been marketing intense with campaigns for our coming releases. In total it affects the quarter’s results but strengthens our position for the important period that now awaits.

PRESENTATION OF REPORT

23 October 12:00 PM CEST Fredrik Wester, CEO, and Alexander Bricca, CFO, will host a livestream on Paradox’s YouTube channel to present the interim report, and answer questions related to the report and the company’s financial performance, https://www.youtube.com/paradoxinteractive.

Questions may be submitted in advance via our forum or by e-mailing them to ir@paradoxinteractive.com. It will be possible to e-mail questions to ir@paradoxinteractive.comduring the presentation.

If you miss the presentation, it will be posted on Paradox’s YouTube channel at a later time.

This disclosure contains information that Paradox Interactive AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 23-10-2025 08:00 CET.

About Paradox Interactive
Paradox Interactive is one of the premier developers and publishers of strategy and management games for PC and consoles. The players are located all over the world but some of the biggest markets are North America, Western Europe and Asia. The game portfolio consists of popular franchises such as Stellaris, Europa Universalis, Hearts of Iron, Crusader Kings, Cities: Skylines, Prison Architect, the Surviving games, Age of Wonders and Victoria. Paradox Interactive also owns the World of Darkness brand catalog. In total, Paradox games have six million players each month.

Paradox Interactive AB (publ)’s shares are listed on Nasdaq Stockholm First North Premier under ticker PDX. Certified Advisor: FNCA Sweden AB. For more information, please visit www.paradoxinteractive.com.

For additional information, please contact:
Fredrik Wester, CEO Paradox Interactive
Alexander Bricca, CFO Paradox Interactive
Email: ir@paradoxinteractive.com
Phone: +4670-355 54 18

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