Paradox Interactive's financial report for the fourth quarter of 2025 revealed a stark contrast between higher revenue and a disappointing bottom line. The company attributed the bulk of its quarterly losses to issues related to Vampire: The Masquerade — Bloodlines 2, according to the announcement accompanying the results.
For the quarter, Paradox reported revenue up 23% year‑over‑year to roughly $99 million. The increase was driven by continued sales of catalog titles such as Age of Wonders 4, Cities: Skylines II and Crusader Kings III, together with recent releases including Europa Universalis V and Vampire: The Masquerade — Bloodlines 2.
Despite the top‑line growth, Paradox swung to a significant operating loss of about $28 million for the quarter, a deterioration of roughly 162% compared with the prior year. The company said that commercial results for Bloodlines 2 fell short of expectations and were the main factor behind the negative operating outcome.
To reflect the weak performance of Bloodlines 2, Paradox recorded impairment charges and other write‑downs exceeding $77 million during the quarter. Those adjustments were the primary reason the period ended in a loss despite stronger revenue.
Looking at the full fiscal year, Paradox's total revenue remained largely unchanged at approximately $241 million, while operating profit declined sharply — down about 80% to $16 million. The dramatic reduction in profitability underscores how a single underperforming major release can materially affect the publisher's financials.
Chief Executive Officer Fred Wester said the company is reevaluating its strategic priorities and reallocating resources to create space for future investments in key areas. Management indicated these changes are intended to strengthen Paradox's position and support new initiatives going forward.