Paradox Interactive Revenue Rises 15% to SEK 456 Million in Third Quarter
Key Facts
Paradox Interactive revenue rose 15% year on year to SEK 456 million in the third quarter of 2026, from SEK 395 million in the same period a year earlier, according to the company’s interim report published on October 29. Operating profit increased 27% to SEK 142 million, from SEK 112 million a year earlier. CEO Fredrik Wester said the quarter saw few releases, which arrived late, so broader catalogue sales carried results. He said: "The quarter was characterized by few releases that came late in the period, which means that sales from our broader catalogue carried the quarter primarily." This picture limits the extent to which revenue growth can be read as the result of a wave of new launches, as the CEO attributed it to sales of existing games in the company’s portfolio.
The company said quarterly revenue came mainly from 8 games: Age of Wonders 4, Cities: Skylines, Cities: Skylines II, Crusader Kings III, Hearts of Iron IV, Stellaris, Transport Fever 3 and Victoria 3. The source combined older titles with games released or supported by additional content during the period, according to the report. Among the releases, the company launched Transport Fever 3 for PC and home consoles, developed by Urban Games. It also released additional content for Surviving Mars: Relaunched and Crusader Kings III. By contrast, Wester described the number of releases during the quarter as limited and delayed, making sales of games already in the catalogue a key to understanding quarterly revenue.
The quarter was not limited to game and content sales: Paradox sold its subsidiary Playrion to Trophy Games and recorded a gain of SEK 40 million from the deal within other operating revenue and operating profit. Including the gain in operating profit means the result of this item was part of the figure that rose 27% to SEK 142 million. During the same period, the company repurchased 1,221,425 of its shares for SEK 178 million under its buyback programme. Net profit after tax was SEK 127 million, compared with SEK 93 million a year earlier. Earnings per share rose to SEK 1.21 from SEK 0.88 in the corresponding period, according to the report.
For the first nine months of 2026, revenue rose 7% to SEK 1,411 million, compared with SEK 1,317 million in the same period of 2025. Operating profit increased 9% to SEK 425 million, from SEK 391 million. Cumulative growth was slower than the 15% quarterly increase in revenue, while operating profit remained higher year on year on both measures. Cash flow from operating activities was SEK 197 million in the quarter, compared with SEK 195 million a year earlier. Cash flow from investing activities was negative SEK 160 million, compared with negative SEK 182 million in the corresponding period.
The quarter also included Steam’s summer sale season, with discounts on a large part of the game catalogue, according to the company. Wester said Paradox announced two new games and released one during the period, and ran its biggest marketing campaign to that point at Gamescom while opening pre-orders for Transport Fever 3. The announced games included Afterworld and LEGO® Skylines. These activities place releases and marketing in the context of the quarter, while the CEO attributed results primarily to broader catalogue sales. The company is scheduled to publish its 2026 year-end report on February 4, 2027.