Paradox Interactive AB (publ) (PDX) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to the year end report and quarter four report for Paradox Interactive. My name is Fred. I'm Alex Brycka. I'm the CFO. Welcome everyone. Welcome. So we'll take you through the releases and the numbers for the quarter. Yes, let's roll. And that's my name. And as you know, we had a very eventful last quarter. It was intense for many reasons. We had a lot of releases, first and foremost, so we released DLCs for all our major franchises. We created a good cash flow and a strong top line, where the results were hampered by a big write-off in the quarter. So we had a great release of Europa Universalis V, which took this franchise to the next level, and it also celebrated 25 years last year, so it was a good time to release it as well. And we had some good results for a wider range of DLCs as well. Worth mentioning is the All Under Heaven DLC for Crusader Kings III that expanded the map all the way to Japan. And as I said, the profit line or EBIT is affected by a big write-down of the game Vampire the Masquerade Bloodlines 2. And we were also facing some foreign exchange headwinds with a stronger krona and a weaker dollar, among other things. So we'll move on. If you look at the year as a whole, we had a year on year improvement of cash flow, which is always a great sign. We strengthened the balance sheet as well during the year and got a new balance on the balance sheet. We released, like I said, a new base game in Europa Universalis 5 and strengthened all the core of our IPs by having a constant flow of releases. We established two new franchises as well, so Victoria 3 and Age of Wonders 4 are now both part of our catalogue with growing player numbers and we hope to continue these games for a long time, typically 10 or more years. So, we also strengthen...