Paradox Interactive AB (SE:PDX)
:PDX
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Paradox Interactive AB
(PDX)
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Rating:67Neutral
Price Target:
kr146.00
▼(-4.07% Downside)
Action:ReiteratedDate:05/02/26
The score is driven primarily by a strong financial foundation (low leverage and solid operating/free cash flow), tempered by a clear step-down in profitability and modest revenue contraction. Technicals are supportive with positive momentum, but valuation looks stretched at a ~38x P/E. The latest earnings call was operationally constructive with strong cash generation and content pipeline, yet highlighted material one-off write-down impacts and FX headwinds that add near-term earnings volatility.
Positive Factors
Conservative balance sheet
Very low debt-to-equity (~0.12) and strong equity relative to assets give durable financial flexibility. This supports multi-year investment in live content and sequels, cushions cyclical game revenue swings, enables dividends/M&A without stressing liquidity or adding material interest burden.
Negative Factors
Profitability compression
Material margin deterioration signals weaker monetization and/or higher structural costs. Lower gross and net margins reduce reinvestment capacity and long-term return on equity, meaning the business converts less revenue into sustainable earnings than in prior years.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low debt-to-equity (~0.12) and strong equity relative to assets give durable financial flexibility. This supports multi-year investment in live content and sequels, cushions cyclical game revenue swings, enables dividends/M&A without stressing liquidity or adding material interest burden.
Read all positive factors
Paradox Interactive AB (PDX) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr14.24B
Dividend Yield3.16%
Average Volume (3M)76.68K
Price to Earnings (P/E)37.9
Beta (1Y)0.62
Revenue Growth-0.41%
EPS Growth-78.54%
CountrySE
Employees596
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.83
Shares Outstanding105,623,024
10 Day Avg. Volume105,035
30 Day Avg. Volume76,677
Financial Highlights & Ratios
PEG Ratio-1.74
Price to Book (P/B)6.87
Price to Sales (P/S)7.84
P/FCF Ratio13.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr129.00Price Target Upside-15.24% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)5.96
Revenue Forecast (FY)kr2.15B
Paradox Interactive AB Business Overview & Revenue Model
Company Description
Paradox Interactive AB (publ) develops and publishes games and brands for PC, mobile, and console platforms primarily in North and Latin America, Europe, the Middle East, Africa, and the Asia Pacific region. The company's game portfolio comprises ...
How the Company Makes Money
Paradox Interactive makes money primarily from selling video games it develops and/or publishes, and from ongoing monetization of those games after launch. Key revenue streams typically include: (1) Sales of base games (digital and, where applicab...
Paradox Interactive AB Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call communicated strong operational momentum: notable product releases, expanding franchises, solid cash generation (SEK 513m operating cash flow) and a strengthened balance sheet with a proposed dividend. However, reported profitability was materially impacted by a large, one-off write-down and elevated amortizations tied to Vampire: The Masquerade – Bloodlines 2, and the business faced FX headwinds (USD down ~12%, EUR down ~5-6%) that reduced reported revenue benefits. On a cash and operational basis the company appears healthy and strategically focused, but headline earnings were negative for the quarter due to one-time accounting charges.Positive Updates
Revenue Growth and Quarterly Ranking
Q4 revenue SEK 875 million vs SEK 709 million in Q4 2024, an increase of 23%. This was the company's second-best revenue quarter on record.
Negative Updates
Large Write-downs Severely Impacting Profit
Operating profit (EBIT) in Q4 was negative SEK 245 million vs SEK 395 million in Q4 2024, a decline of SEK 640 million. The quarter included SEK 701 million in amortizations and write-downs related to Vampire: The Masquerade – Bloodlines 2, which drove most of the profit deterioration.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Quarterly Ranking
Q4 revenue SEK 875 million vs SEK 709 million in Q4 2024, an increase of 23%. This was the company's second-best revenue quarter on record.
Read all positive updates
Company Guidance
Management guided that growth will come from a mix of live‑game content, sequels and new releases (notably Europa Universalis V, continued DLC cadence for Victoria 3 and Age of Wonders 4), with capital allocated primarily to development (cash invested in Q4 was SEK 145m, described as the new normal) and selective M&A while returning excess cash to shareholders (proposed dividend SEK 5; share buybacks not pursued on Nasdaq First North). They highlighted Q4 results of SEK 875m revenue (+23% y/y vs SEK 709m) and strong operating cash flow SEK 513m despite an EBIT loss of SEK 245m driven by major impairment items (management cited SEK 701m related to Vampire: Bloodlines 2 and also detailed amortization of SEK 510m and write‑downs of SEK 355m), profit after tax SEK 201m and margin -28% (vs 57% prior), equity/assets 79%, average employees 663 and ~6 million monthly active users (management targets a stable 7m before upgrading that metric). Management also warned of FX headwinds (USD ~-12% q/q, EUR ~-5–6%), said they do not hedge currency exposure, and emphasized prioritizing internal studios and live operations while keeping acquisitions and earn‑outs conservatively accounted.Paradox Interactive AB Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.16B | 2.19B | 2.20B | 2.64B | 1.97B | 1.45B |
| Gross Profit | 453.50M | 523.99M | 997.29M | 1.25B | 1.11B | 566.49M |
| EBITDA | 1.34B | 1.35B | 1.47B | 1.69B | 1.36B | 431.50M |
| Net Income | 87.95M | 125.46M | 584.63M | 530.63M | 708.71M | 247.77M |
Balance Sheet | ||||||
| Total Assets | 3.25B | 3.17B | 3.53B | 3.58B | 3.14B | 2.52B |
| Cash, Cash Equivalents and Short-Term Investments | 1.55B | 1.38B | 1.47B | 1.30B | 747.51M | 599.72M |
| Total Debt | 155.53M | 165.24M | 64.79M | 108.58M | 140.46M | 168.97M |
| Total Liabilities | 656.64M | 671.30M | 622.71M | 959.67M | 849.05M | 861.13M |
| Stockholders Equity | 2.59B | 2.50B | 2.91B | 2.62B | 2.29B | 1.66B |
Cash Flow | ||||||
| Free Cash Flow | 946.46M | 1.23B | 519.85M | 745.64M | 288.85M | -12.66M |
| Operating Cash Flow | 1.28B | 1.24B | 1.12B | 1.45B | 1.08B | 736.59M |
| Investing Cash Flow | -657.91M | -752.82M | -403.22M | -848.28M | -806.97M | -766.57M |
| Financing Cash Flow | -567.19M | -567.12M | -355.17M | -248.96M | -140.97M | -139.59M |
Paradox Interactive AB Technical Analysis
Neutral
152.20
Price Trends
121.80
Positive
139.07
Negative
156.64
Negative
Market Momentum
1.62
Negative
70.07
Negative
91.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PDX, the sentiment is Neutral. The current price of 152.2 is above the 20-day moving average (MA) of 121.84, above the 50-day MA of 121.80, and below the 200-day MA of 156.64, indicating a neutral trend. The MACD of 1.62 indicates Negative momentum. The RSI at 70.07 is Negative, neither overbought nor oversold. The STOCH value of 91.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:PDX.
Paradox Interactive AB Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | kr14.24B | 37.90 | 22.69% | 3.16% | -0.41% | -78.54% | |
66 Neutral | kr14.44B | 2.23 | 10.27% | ― | -45.71% | ― | |
61 Neutral | kr15.37B | 19.84 | -1.61% | ― | 70.95% | ― | |
61 Neutral | kr451.80M | 23.65 | 12.65% | 9.28% | -17.01% | -74.62% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | kr2.68B | 3.97 | ― | ― | -15.98% | 69.06% | |
44 Neutral | kr1.48B | -0.62 | ― | ― | -5.06% | -718.26% |
* Communication Services Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.