Paradox Interactive’s latest interim report isn’t very positive, but Age of Wonders 4 and Cities: Skylines 2 emerge as big winners during the last quarter.
The company shared today, April 30, the expected Q1 2026 interim report, which highlights a downturn in revenues and operating profit while highlighting the resilience and positive performance of certain core properties. You can watch the report in video form below:
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Here are some highlights straight from Paradox:
- Revenues amounted to MSEK 431.1 (MSEK 463.6), a decrease of 7% compared to the same period last year.
- Operating profit amounted to MSEK 100.8 (MSEK 146.6), a decrease of 31%.
- Profit after financial items amounted to MSEK 105.8 (MSEK 153.9), and profit after tax amounted to MSEK 86.2 (MSEK 123.7).
- Cash flow from operating activities amounted to MSEK 308.7 (MSEK 266.2), and cash flow from investing activities amounted to MSEK -122.4 (MSEK -217.3).
- At the end of the period, cash and cash equivalents amounted to MSEK 1,554.6 (MSEK 1,501.5).
- Earnings per share before dilution amounted to SEK 0.82 (SEK 1.17) and after dilution to SEK 0.82 (SEK 1.17).
- 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.
Significant events included the launch of new DLCs for Age of Wonders 4 and Cities: Skylines 2, but the first Cities: Skylines and Hearts of Iron IV continue to be pillars for the publisher.
On the most business-y side of the report, we’ve learned the “Board of Directors of Paradox Interactive AB has applied for admission to trading of the Company’s shares on Nasdaq Stockholm Main Market.” Updates will arrive later this year if the listing is approved.
CEO Fredrik Wester described Q1 2026 as more balanced after an intense final stretch of 2025. It might come as a bit of a surprise, but he underlined the improvements made on the ill-fated Cities: Skylines 2 by new developer Iceflake Studios. At the time of writing, it’s reached the ‘Mostly Positive’ rating on Steam after many difficulties since its late 2023 launch.
Our Cities: Skylines 2 review called it “a remarkably unsurprising video game” that got the job done but lacked polish and raised some questions, especially with its predecessor still going strong. Original studio Colossal Order parted ways with Paradox in November 2025.
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