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Paradox Interactive AB
(PDX)
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Rating:72Outperform
Price Target:
kr151.00
▲(3.85% Upside)
Action:Upgraded
Date:08/09/26
SE:PDX scores well primarily due to strong balance-sheet solvency and cash-generation strength, supported by a positive earnings update showing improving profitability and active shareholder returns. The main drag is valuation (very high P/E), while technicals are neutral-to-mildly positive rather than strongly bullish.
Positive Factors
Conservative balance sheet
Very low leverage gives Paradox substantial financial flexibility to fund development, absorb project setbacks and pursue publishing opportunities without relying heavily on external financing.
Negative Factors
Compressed margins and weak earnings quality
The significant margin reset and only modest TTM revenue growth reduce earnings predictability, suggesting that stronger operating results will need to persist before profitability can sustainably return to prior levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage gives Paradox substantial financial flexibility to fund development, absorb project setbacks and pursue publishing opportunities without relying heavily on external financing.
Read all positive factors
Paradox Interactive AB (PDX) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr15.05B
Dividend Yield3.44%
Average Volume (3M)76.68K
Price to Earnings (P/E)121.2
Beta (1Y)0.54
Revenue Growth7.73%
EPS Growth-81.02%
CountrySE
Employees681
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.20
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.89
Revenue Forecast (FY)kr2.19B
Paradox Interactive AB Business Overview & Revenue Model
Company Description
Paradox Interactive AB (publ) is a Swedish video game company that develops and publishes titles for PC, mobile, and console systems. The firm primarily operates across North and South America, Europe, the Middle East, Africa, and the Asia-Pacific...
How the Company Makes Money
Paradox Interactive primarily makes money by selling video games it develops and/or publishes, and by monetizing those games over time through downloadable content (DLC) and expansions. Key revenue streams include: (1) Full game sales: Revenue fro...
Paradox Interactive AB Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company delivered solid revenue growth (+14% YoY), materially higher operating profit (+37%) and an improved margin (36% vs 30%). Strong adjusted operating cash flow, no new write-downs, the Cities: Skylines 2 sales surge, a conservative balance sheet and active capital returns (SEK 200m buyback plus earlier dividend) reinforce a constructive outlook. Headwinds include higher COGS and amortization driven by recent projects, elevated admin and support costs, FX timing impacts (~2% headwind), and rolling 12-month profit still depressed by past write-downs. Management flagged normal seasonality with a likely softer Q3 and did not provide explicit short-term EBIT guidance. Overall, positives outweigh the negatives, with operational momentum and financial strength balanced against some cost and timing pressures.Positive Updates
Revenue Growth
Q2 revenue SEK 524 million, up 14% year-over-year from SEK 459 million, despite an estimated ~2% FX headwind.
Negative Updates
Higher Cost of Goods Sold and Amortization
COGS rose to SEK 259 million from SEK 232 million (+~12%). Amortization of capitalized development increased to SEK 103 million from SEK 79 million (+30%), driven mainly by Europa Universalis 5 and Bloodlines projects.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 revenue SEK 524 million, up 14% year-over-year from SEK 459 million, despite an estimated ~2% FX headwind.
Read all positive updates
Company Guidance
Management signaled directional guidance on seasonality, capital allocation and margins: Q2 revenue was SEK 524m (+14% y/y from SEK 459m) with roughly a 2% FX headwind, operating profit SEK 182m (vs SEK 133m), profit before tax SEK 188m (vs SEK 139m) and a 36% profit margin (vs 30%, with a long‑term aim “probably over 40%”), equity/assets 76% (vs 81%), average employees 695 (vs 640), COGS SEK 259m (vs 232m), selling expenses SEK 53m, admin SEK 33m (incl. ~SEK 3m one‑off listing cost), amortization of capitalized development SEK 103m (vs 79m), development support SEK 30m (vs 24m), royalties SEK 28m (vs 26m), other income net SEK +4m (vs -13m), financial income ~SEK 6m, operating cash flow SEK 105m (including a SEK 185m prepayment for co‑publishing; ex‑prepayment ~SEK 290m) and investing cash flow SEK 166m; the Board approved a SEK 200m buyback (after SEK 500m dividend this year, implying ~SEK 700m total shareholder distribution if completed), MAU ~6m, and management reiterated Q3 is typically slower (no explicit EBIT guidance), amortization from Europa Universalis V and Bloodlines 2 will decline, and royalties should trend lower as more content is produced in‑house.Paradox Interactive AB Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.22B | 2.19B | 2.20B | 2.64B | 1.97B | 1.45B |
| Gross Profit | 489.06M | 523.99M | 997.29M | 1.25B | 1.11B | 566.49M |
| EBITDA | 1.39B | 1.35B | 1.47B | 1.69B | 1.36B | 431.50M |
| Net Income | 126.64M | 125.46M | 584.63M | 530.63M | 708.71M | 247.77M |
Balance Sheet | ||||||
| Total Assets | 2.90B | 3.17B | 3.53B | 3.58B | 3.14B | 2.52B |
| Cash, Cash Equivalents and Short-Term Investments | 956.00M | 1.38B | 1.47B | 1.30B | 747.51M | 599.72M |
| Total Debt | 146.00M | 165.24M | 64.79M | 108.58M | 140.46M | 168.97M |
| Total Liabilities | 684.00M | 671.30M | 622.71M | 959.67M | 849.05M | 861.13M |
| Stockholders Equity | 2.22B | 2.50B | 2.91B | 2.62B | 2.29B | 1.66B |
Cash Flow | ||||||
| Free Cash Flow | 995.83M | 1.23B | 519.85M | 745.64M | 288.85M | -12.66M |
| Operating Cash Flow | 1.12B | 1.24B | 1.12B | 1.45B | 1.08B | 736.59M |
| Investing Cash Flow | -617.93M | -752.82M | -403.22M | -848.28M | -806.97M | -766.57M |
| Financing Cash Flow | -567.61M | -567.12M | -355.17M | -248.96M | -140.97M | -139.59M |
Paradox Interactive AB Technical Analysis
Positive
145.40
Price Trends
133.25
Positive
130.43
Positive
134.76
Positive
Market Momentum
3.02
Negative
62.23
Neutral
88.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PDX, the sentiment is Positive. The current price of 145.4 is above the 20-day moving average (MA) of 139.33, above the 50-day MA of 133.25, and above the 200-day MA of 134.76, indicating a bullish trend. The MACD of 3.02 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 88.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | kr15.05B | 121.17 | 3.38% | 7.84% | 7.73% | -81.02% | |
63 Neutral | kr465.86M | 20.16 | 5.44% | 3.22% | -19.67% | -68.42% | |
63 Neutral | kr3.39B | -1.67 | ― | ― | -13.65% | 72.95% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | kr16.21B | 93.52 | 1.54% | ― | 42.27% | ― | |
55 Neutral | kr1.69B | -0.89 | ― | ― | -11.07% | -734.06% | |
47 Neutral | kr179.57M | -0.39 | -138.93% | ― | -27.96% | -152.47% |
* Communication Services Sector Average
SE:PDX
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Paradox Interactive AB Corporate Events
Paradox Interactive lifts Q2 profit on strong franchises and moves to Nasdaq main market
Aug 6, 2026
Paradox Interactive delivered solid growth in the second quarter of 2026, with revenues up 14% to MSEK 524 and operating profit jumping 37% to MSEK 182, driven by continued strong performance from core franchises including Age of Wonders 4, Cities...
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.