CD Projekt Red Reports Strong Q1 2026 Results, Delays 'Songs of the Past' Expansion
Financial Results (Q1 2026)
Net profit for the quarter reached PLN 106 million, with a net profitability of 56%.
CD Projekt Red posted solid financial results for the first quarter of 2026. Sales revenue climbed to over PLN 191 million, marking a 6% increase year-over-year. Gross profit stood at PLN 177 million, while selling and administrative expenses totaled PLN 81 million.
The company's cash position remains robust. Cash, deposits, and bonds amounted to PLN 1.411 billion as of the end of March. The equity surplus reached PLN 3.4 billion. Positive cash flows of PLN 148 million were generated in the quarter, offset by nearly PLN 150 million in development expenditures. An increase in financial reserves added PLN 86 million, bringing the total to over PLN 1.4 billion at quarter's end.
No dividends were paid due to the financing needs of ongoing projects.
Product & Business Updates
The Witcher 3: Wild Hunt has now sold over 65 million copies globally, cementing its place as a landmark in the industry.
The 'Songs of the Past' expansion for The Witcher 3 received a positive community reaction, but its release has been delayed. The expansion, initially planned for 2026, is now scheduled to launch in 2027. This delay may affect expected revenue for the current fiscal year. Notably, 'Songs of the Past' will not be released on PlayStation 4.
In other news, the company introduced The Witcher 3 and Cyberpunk 2077 to Xbox Game Pass. A technical update for Cyberpunk 2077 was also released to leverage the capabilities of the PlayStation 5 Pro. Separately, the Kickstarter campaign for the Cyberpunk Trading Card Game raised a staggering $28 million.
Q&A Highlights
Management expressed satisfaction with the quality of 'Songs of the Past', which was developed in cooperation with Fool's Theory. While this project is now slated for 2027, other content in advanced production is planned for release in 2026.
Other
The company acknowledged that its ambitious project pipeline may strain resources. Furthermore, financial targets for the incentive program are considered ambitious, with uncertainty surrounding the ability to meet the established deadlines for 2026 and 2027.