CD PROJEKT wraps up the first half of 2025

CD PROJEKT Group reported H1 2025 revenues of 443 million PLN and a net profit of 155 million PLN, largely propelled by Cyberpunk 2077 and its Phantom Liberty expansion, which surpassed 10 million units sold. The company showcased a tech demo for The Witcher 4, developed with Epic Games on Unreal Engine 5, and moved Cyberpunk 2 into preproduction, highlighting significant investment in future titles. Concurrently, Cyberpunk 2077 expanded to Nintendo Switch 2 and Mac, while The Witcher 3 sales exceeded 60 million copies, reinforcing the enduring strength of their core franchises and strategic focus on IP growth and technological leadership.

Analysis

CD PROJEKT Group's first-half 2025 results demonstrate a robust financial position, with 443 million PLN in revenue and 155 million PLN in net profit, fueled predominantly by the continued success of the Cyberpunk 2077 franchise. The Phantom Liberty expansion has proven to be a significant value driver, surpassing 10 million units sold and complementing the base game's expansion onto new platforms like the Nintendo Switch 2 and Apple Silicon Macs. This strong ongoing monetization is critically funding an aggressive investment cycle into future titles, with development expenditures reaching over 240 million PLN in H1. The company is advancing a dual-franchise pipeline, with Cyberpunk 2 moving into pre-production and The Witcher 4's tech demo showcasing a deep strategic collaboration with Epic Games on Unreal Engine 5, positioning CD PROJEKT at the forefront of game development technology. The commercial longevity of its intellectual property is further evidenced by The Witcher 3 reaching over 60 million copies sold, underscoring the company's ability to create enduring and highly profitable franchises.

Key Decisions for Investors

• Investors should view the significant 240 million PLN H1 development expenditure as a long-term investment in growth, recognizing that while it will weigh on near-term profitability, it is essential for the development of major future revenue streams from The Witcher 4 and Cyberpunk 2.
• The successful multi-platform rollout of Cyberpunk 2077 and the announcement of the Edgerunners 2 anime validate the company's IP expansion strategy, suggesting that the firm should be evaluated not just as a game developer but as a multimedia intellectual property holder with multiple avenues for monetization.
• The deep technical collaboration with Epic Games on Unreal Engine 5 represents a key potential competitive advantage but also introduces execution risk; it is prudent to monitor development updates for any potential delays or challenges that could impact future release timelines.
• Given that current revenues are being reinvested into a long development cycle, investors should focus on sales momentum of existing products and progress updates on the development pipeline as the primary catalysts, rather than expecting major new releases in the near future.