CD Projekt (OTGLY) AI Stock Analysis

• Market Cap: $6.60B
• Dividend Yield: 0.41%
• Average Volume (3M): 1.24K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.93
• Revenue Growth: 5.50%
• EPS Growth: 35.59%
• Country: US
• Employees: 634
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.12
• Shares Outstanding: 399,642,030
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,236
• PEG Ratio: 7.26
• Price to Book (P/B): 7.31
• Price to Sales (P/S): 28.97
• P/FCF Ratio: 46.65
• Enterprise Value/Market Cap: 3.69
• Enterprise Value/Revenue: 29.37
• Enterprise Value/Gross Profit: 32.76
• Enterprise Value/Ebitda: 48.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $18.00 ▲(8.17% Upside)
• Action: Reiterated Date: 03/22/26
• Date: Action: Reiterated 03/22/26

The score is primarily driven by strong financial strength and profitability, led by a very conservative balance sheet. This is tempered by weakening recent revenue and uneven free-cash-flow conversion, while technical signals are bearish (below key moving averages with negative MACD) and valuation is constrained by a relatively high P/E with only a modest dividend yield.

Positive Factors

Conservative Balance Sheet

Extremely low leverage and a large equity base give CD Projekt durable financial flexibility: it can fund long game development cycles, absorb earnings volatility from hit-driven releases, and avoid costly external financing during multi-year production phases.

High Profitability

Sustained high gross and net margins indicate strong pricing power and efficient cost structure on releases and back-catalog sales; this bolsters reinvestment capacity for R&D, funds post-launch support and DLC, and supports shareholder returns over the medium term.

Solid Operating Cash Generation

Consistent operating cash flow that comfortably covers obligations reduces refinancing risk and enables funding of development, marketing and platform operations (e.g., GOG) without relying on debt, supporting stable execution across multi-year product cycles.

Negative Factors

Declining Revenue Trend

A multi-quarter decline in revenue erodes the base for profitable recurring sales and increases dependence on future blockbuster releases. Over 2–6 months this weakens visibility into sustainable top-line growth and makes planning for R&D and publishing spend harder.

Weak Free Cash Flow Conversion

Persistent gaps between net income and free cash flow plus volatile annual swings indicate conversion risk from working capital and investment timing. This undermines predictable funding for development and dividends and increases reliance on cash buffers.

Cyclicality from Release-Driven Model

A business model tied to infrequent AAA releases creates lumpy revenue and profit cycles. Over the medium term this cyclicality raises execution risk, makes revenue and cash forecasts volatile, and pressures resource planning between hit-driven peaks.

CD Projekt Business Overview & Revenue Model

Company Description

CD Projekt is a Polish video game developer and publisher, best known for its critically acclaimed role-playing game series, The Witcher, and the open-world game Cyberpunk 2077. Founded in 1994, the company operates primarily in the entertainment sector, focusing on video games for various platforms, including PC, consoles, and mobile devices. In addition to game development, CD Projekt owns GOG.com, a digital distribution platform for video games and films, which emphasizes DRM-free content and classic titles.

How the Company Makes Money

CD Projekt primarily makes money by selling video games and related content it develops and publishes. Key revenue streams include: (1) Full game sales (digital and physical): Revenue from initial releases of its flagship titles (e.g., The Witcher series, Cyberpunk 2077) sold via PC and console marketplaces and retail channels; digital sales are typically distributed through third-party platforms (console stores and PC storefronts) and physical sales are supported by distribution/retail partners, with platform fees and channel margins affecting net receipts. (2) Downloadable content (DLC) and expansions: Additional paid content released after a game’s launch that extends gameplay and generates incremental revenue over the life of a title. (3) In-game monetization for multiplayer titles: Revenue derived from online multiplayer offerings; if specific monetization mechanics are not publicly disclosed for a given title or period, null. (4) Licensing and royalties: Earnings from licensing its intellectual property (notably The Witcher) for uses beyond its own games (e.g., merchandise and other media adaptations) and from agreements where its IP is used by third parties; exact deal terms may be undisclosed. (5) GOG.com (digital distribution): Revenue from operating its DRM-free PC game storefront, which earns money through sales of third-party games and CD Projekt titles on the platform, typically retaining a share of transaction value while remitting the remainder to publishers/developers; it may also generate revenue from related services offered on the platform. The company’s earnings are heavily influenced by the release timing and commercial performance of major game launches, the long-tail sales of back-catalog titles, and relationships with platform holders (e.g., console storefronts) and distribution partners that enable global reach.

CD Projekt Financial Statement Overview

Summary

Strong overall fundamentals supported by a fortress-like balance sheet (very low leverage) and strong profitability. The main offsets are shrinking TTM revenue and mixed cash conversion with free cash flow meaningfully below net income and lumpy year-to-year cash flow.

Income Statement

Profitability is very strong in the latest TTM (Trailing-Twelve-Months), with high gross and bottom-line profitability and solid operating profitability. However, revenue has been shrinking recently (TTM down materially vs. last year), following a prior period of sharp volatility, which increases earnings durability risk for a game-driven release cycle.

Balance Sheet

The balance sheet is conservatively positioned with extremely low leverage (debt is a very small fraction of equity) and a large equity base. Returns on equity are healthy in the most recent periods, though they have been volatile historically (notably elevated in the blockbuster year), reflecting cyclicality rather than financial strain.

Cash Flow

Operating cash generation is solid and comfortably supports the company’s obligations, but cash conversion is mixed: free cash flow is meaningfully below net income in the latest TTM (Trailing-Twelve-Months), implying weaker conversion after investment and working-capital effects. Free cash flow also shows sizable swings year to year, consistent with a lumpy production and release cadence.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	828.73M	985.03M	1.23B	952.58M	888.17M
Gross Profit	743.01M	737.88M	849.63M	708.60M	637.94M
EBITDA	506.14M	448.49M	553.33M	514.32M	329.12M
Net Income	503.58M	469.87M	481.11M	347.09M	208.91M
Balance Sheet
Total Assets	3.50B	3.04B	2.61B	2.27B	2.16B
Cash, Cash Equivalents and Short-Term Investments	634.00M	1.19B	878.98M	894.67M	984.35M
Total Debt	26.00M	20.15M	20.04M	28.46M	46.88M
Total Liabilities	213.15M	241.76M	209.95M	240.72M	264.38M
Stockholders Equity	3.29B	2.80B	2.40B	2.03B	1.89B
Cash Flow
Free Cash Flow	514.65M	173.84M	280.07M	149.93M	784.46M
Operating Cash Flow	609.77M	521.30M	610.88M	406.03M	967.83M
Investing Cash Flow	-499.21M	-470.55M	-607.35M	-335.61M	-613.79M
Financing Cash Flow	-120.86M	-103.92M	-103.31M	-204.18M	-505.78M

CD Projekt Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTGLY, the sentiment is Negative. The current price of 16.64 is below the 20-day moving average (MA) of 16.69, below the 50-day MA of 17.39, and below the 200-day MA of 17.47, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 18.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OTGLY.

CD Projekt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDI	77 Outperform	$414.02M	4.17	11.28%	―	1.21%	0.72%
EA	70 Outperform	$50.18B	145.12	11.05%	0.37%	-1.45%	-11.99%
OTGLY	67 Neutral	$6.60B	34.98	19.61%	0.41%	5.50%	35.59%
BILI	65 Neutral	$10.37B	62.04	8.04%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	57 Neutral	$37.15B	-126.36	-126.41%	―	13.98%	-6.71%
PLTK	52 Neutral	$1.07B	-7.20	119.44%	9.98%	7.49%	-60.32%