Interim report January - June 2026

SECOND QUARTER

• Revenues amounted to MSEK 524 (MSEK 459), an increase of 14% compared to the same period last year.
• Operating profit amounted to MSEK 182 (MSEK 133), an increase of 37%.
• Profit after financial items amounted to MSEK 188 (MSEK 139), and profit after tax amounted to MSEK 149 (MSEK 110).
• Cash flow from operating activities amounted to MSEK 105 (MSEK 262), and cash flow from investing activities amounted to MSEK -168 (MSEK -208).
• Earnings per share before dilution amounted to SEK 1.41 (SEK 1.04) and after dilution to SEK 1.41 (SEK 1.04).
• 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.

FIRST SIX MONTHS

• Revenues amounted to MSEK 955 (MSEK 922), an increase of 4% compared to the same period last year.
• Operating profit amounted to MSEK 283 (MSEK 280), an increase of 1%.
• Profit after financial items amounted to MSEK 294 (MSEK 293), and profit after tax amounted to MSEK 235 (MSEK 234).
• Cash flow from operating activities amounted to MSEK 413 (MSEK 528), and cash flow from investing activities amounted to MSEK -290 (MSEK -425).
• Earnings per share before dilution amounted to SEK 2.22 (SEK 2.22) and after dilution to SEK 2.22 (SEK 2.21).

SIGNIFICANT EVENTS SECOND QUARTER

• New downloadable content was released for games during the period: Songs of the Realm to Crusader Kings III, Thunder at our Gates and Peace for our Time to Hearts of Iron IV, Nomads to Stellaris, Secrets of the Archmages to Age of Wonders 4, Fate of the Phoenix to Europa Universalis V, Loose Cannon and The Flower & the Flame to Vampire: The Masquerade - Bloodlines 2.
• Paradox Interactive AB's shares were admitted to trading on the Nasdaq Stockholm Main Market on 9 June 2026. The listing was completed without an offering or issuance of new shares.
• A publishing partnership was entered into with Urban Games for the publishing of Transport Fever 3.
• A Publisher Sale was held on Steam during the period, offering discounts across a large part of its game catalogue.
• At the Annual General Meeting held on 12 May, Lars Jörnow and Kaisa Salakka were elected as new members of the Board of Directors.

COMMENTS BY THE CEO

We close the first half of the year with a strong quarter. The results were driven by solid catalogue sales combined with a broad range of new content for our established games. That is, of course, very encouraging, but when I look back at the quarter, it is not really the numbers that stand out to me. What gives me the greatest confidence in the future is what it says about Paradox's ability to build for the long term.

Many years ago, our business was largely about launching games. Today, it is about building worlds that players want to return to for many years. When our largest franchises continue to grow long after launch, it confirms that this shift has been the right one. A launch is not the end of a project. It is the beginning of a long relationship with our players.

That is also why much of our work during the quarter focused on continuing to develop our existing games. New content for Crusader Kings III, Hearts of Iron IV, Stellaris, Europa Universalis V, and others is not just about giving players more content. It is about continuing to deepen the experience, create new stories, and give players new reasons to come back. It is a model we believe in strongly, and one that continues to deliver.

PRESENTATION OF REPORT

Today, 6 August at 12:00 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 by e-mailing them to ir@paradoxinteractive.com. It will be possible to e-mail questions during the presentation.

A recording of the presentation will be available afterwards on Paradox's YouTube channel.