CD Projekt Aktie

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to CD Projekt First Half 2026 Earnings Conference Call on the second September. [Operator Instructions]

So without further ado, I would like now to pass the line to Mr. Michal Nowakowski, the Joint Chief Executive Officer. Please go ahead, sir.

Good evening. Thank you for joining us today. My name is Michal Nowakowski. I'm the joint CEO of CD PROJEKT RED and I'll be hosting today's earnings call concerning the first half of 2026. Presenting alongside me is our CFO, Piotr Nielubowicz. And after the presentation, we'll open the floor for Q&A or will be joined by Karolina Gnas, our VP of Investor Relations.

If I were to sum up this half year in one sentence, I would say this, both our franchises are stronger than ever, and we are ushering in the next chapter in the [ group ]. So let me show you what I mean starting with Cyberpunk. Nearly 6 years after the launch of Cyberpunk 2077 it has sold over 14 million copies and continues to sell well. This reflects deliberate life cycle management, platform expansion, broadening player reach and continuous support for the game itself. The results speak for themselves.

In the first week of July, the peak concurrent player figure on [ steam ] exceeded 100,000, the highest value observed since October 2023. Meanwhile, Phantom Liberty has reached its own milestone in July, crossing the 15 million copies sold threshold. Today, Cyberpunk is an evergreen franchise. And as you'll see in a moment, its value compounds well beyond the game itself. We keep expanding the Cyberpunk ecosystem for selective license based partnerships that fit our world.

In the first half of the year, Night City was featured, among others in withering waves and Apex Legends. For its part, the Cyberpunk [ trade ] card game raised $28 million, becoming the most funded table top game project in [ Kickstarter's ] history. These partnerships generate visible revenue while maintaining global brand engagement between our core game releases. The new season of the Cyberpunk: Edgerunners anime series is launching on Netflix on October 20. In 2022, the release of the first season drove a resurgence of interest in Cyberpunk 2077 among players, which led directly to a visible spike in game sales. With Edgerunners too, we want to reengage audiences with VIP and encourage players to come back to Night City.

Now let me turn your attention to the Witcher franchise. Witcher 3: Wild Hunt has now sold over 65 million copies. Making it one of the best-selling games for all time. Across the whole franchise, we have now sold over 90 million, which [ gains ] -- these numbers provide us with a solid foundation for upcoming releases in the universe. The first one comes on September 29, '26 -- 2026, when we are launching The Witcher 3: Wild Hunt - Remastered. This new addition brings us slower upgrades and enhancements to visuals, performance and gameplay. Remastered also includes a dedicated addition of the game for Nintendo Switch 2. Existing owners will receive Remastered along with both expansions, [ hot of stone ] and blood and wine at no additional cost. With this move, we reactivated players interest in the the Witcher franchise and attracting new ones to the Witcher 3: Wild Hunt. Remastered builds momentum ahead of the release of [ songs ] over the past and the Witcher 4.

In 2027, we're launching Songs of the Past past, the third full expanson for The Witcher 3: Wild Hunt, with a scope comparable to Blood and Wine. It acts as a natural bridge keeping player engagement high and directly leading into the launch of the next saga. And we're also gearing up for The Witcher 4 with a target release window in 2028. The game marks the beginning of a new saga and is the biggest, boldest and most ambitious projects in our history so far.

To sum up, three subsequent years, three major releases each bigger than the one before in one unified universe. And I want to be clear, this is not the full list of what we are working on in this universe. In this context, it is encouraging that a recent experience of Gamescom only reaffirm [ our ] conviction, players do want more Witcher content. Our hands off demo gameplay showcase of Songs of the Past attracted nearly 9,000 players alongside 1,500 media representatives and industry personals. During the event, we conducted over 50 interviews with global media outlets, securing broad coverage for the coming weeks. The reception of our materials presented during Gamescom confirms that player enthusiasm for the Witcher remains strong.

Taken together, the Songs of the Past teaser trailer its games from demo [ Supercuts ] and the announcement dealer of the Witcher 3: Wild Hunt Remastered generated 26 million views across our own channels. Of course, not counting opening night live stream views. Additionally, our games became the two most hotly discussed releases announced during the opening night life. According to data from tracked social media platforms within the first 12 hours of the event. CD Projekt Red also to come [ 3 ] official games come awards, best trailer for the Songs of the Past [ reveal ] and [ Best March ], both voted by [ Go Community ] and the jury award for the Best booth. And this momentum translated into measurable results, 900,000 players added songs of the past on their wish list within a week.

Getting back to our growth plans for both franchises. We continue to expand our teams to deliver this ambitious pipeline. As of the end of July 2026, our total development team grew to 1,045 people. The Witcher [ 14 ] remains our largest unit with 519 developers on board. Over the last 3 months, we expanded the Cyberpunk [ 2 ] team to 184 developers to support the game's current development phase. With the other projects, we aligned their head count with the project's current needs.

And now I will hand over the floor to our CFO, Piotr Nielubowicz, who is going to walk you through the financial results for the period. Piotr, it's your turn.

Good evening, everyone. Let's start with our consolidated profit and loss account on Slide 16. Our sales revenue for the first half of 2026 reached over PLN 435 million, an impressive 23% increase compared to the first half of 2025 when Cyberpunk 2077 premier [ on ] Nintendo Switch 2. The majority of sales came from our own products, particularly the Cyberpunk family.

In Q1, we also recognized revenue from the inclusion of the base addition of Cyberpunk 2077 and the Witcher 3: Wild Hunt complete addition in Xbox [ Campus ] premium and ultimate subscriptions. But what really made a difference in the first 6 months of 2026 compared to a year ago were revenues from IP licensing, a new line in our presentation and report. We booked almost PLN 95 million year, which included licensing revenues from some of the already announced and mentioned by Michal products and partnerships like Cyberpunk trading card game developed by [ Wood ] the co-op with [ uterine ] waves as well as some other initiatives that are still unannounced.

With cost of sales being a bit lower year-on-year, our gross profit on sales reached nearly PLN 406 million, up 28% compared to the first half of 2025. Operating costs slightly increased by 6% reaching over PLN 160 million, driven mainly by administrative expenses, while selling expenses remained pretty stable. Finally, our net profit for the first half of 2026 reached nearly PLN 0.2 billion, a solid 37% increase year-on-year. We're also very satisfied with the net profitability we've achieved, which is why I'd like to share a slightly longer-term [ view ].

On the next slide, you can see [ tetapriograds ] semiannual simplified financial results along with the net profitability for each period over the last 4 years. This year's net profitability of 57%, combined with an increasing revenue stream, have allowed us to achieve a nearly threefold increase in net profit over 3 years.

The next slide, #18, presents our consolidated balance sheet on the asset side. The main position remains the expenditure on development projects, which grew by PLN 364 million to surplus PLN 1.5 billion. During the first half of 2026 alone, we invested nearly PLN 385 million in new development work. Main investments for the period are related to the development of [ Witcher 4 ], [ Cyberpunk 2 ] and the Songs of the Past expansion. We also recorded an increase in property, plant and equipment and investment properties altogether by PLN 69 million. It was driven mainly by investments in our campus expansion and ongoing construction works on it.

On the current asset side, trade receivables increased to PLN 160 million due to higher sales at the end of the reporting period while other current assets decreased to PLN 102 million, primarily following the settlement of receivables from the sale of [ GOG ] shares and historical prepayments. At the bottom of the table, you can see our total liquid reserves, combining cash, bank deposits and bonds, which stood at nearly PLN 1.29 billion at the end of June maintaining a resilient financial buffer. As usual, I will discuss this in more detail on the dedicated cash flow slide.

Moving to Slide 19, equity and liabilities. Driven by the strong net profit for the period, our total equity grew by 8% to serve us PLN 3.5 billion as of the end of June. Total liabilities remained stable at PLN 227 million.

Now please move to Slide 20, our expenditures on research works, development and cost of product maintenance presented here on a quarterly basis over the last 6 quarters. The chart clearly illustrates the steady ramp-up in our production effort. Investments in our projects mainly publicly announced alongside some unannounced are constantly growing. The vast majority of what we present here shown in blue, relates to capitalized development projects. The increase comes from -- both from projects developed internally and those created in cooperation with our partners like Songs of the Past or [ Jonas to ]

And finally, let's look at our aggregated cash flow drivers on Slide 21. Cash-wise, the PLN 249 million book net profit from continuing operations was supported by PLN 47 million in amortization, depreciation and non-cash costs of our share-based incentive programs. At the same time, PLN 59 million was spent on the acquisition of tangible and intangible assets as discussed on the balance sheet slide. The overall changes in working capital decreased our cash flows by PLN 21 million, driven mainly by increased level of receivables related to higher sales decreased provisions mainly related to 2025 annual bonuses being paid out in Q2.

Summing it all up, we generated an estimated positive cash flow of PLN [ 229,000 ] from our ongoing business in the first half of 2026. Additionally, in general, we received the payment for the sale of GOG shares, which after transaction costs bolstered our cash position by PLN 87 million. And last but not least, our cash outflows associated to progressing development expenditures. These amounted to PLN 356 million in the first 6 months of this year. All in all, during the reporting period, our financial reserves capped in cash, bank deposits and [ BOSS ] decreased by PLN 39 million, standing up at nearly PLN 1.3 billion at the end of June.

To conclude my part of the presentation, let's look at Slide 22, which tracks our progress toward the earnings conditions of Incentive Program B. The goal for the first tranche for financial years 2023, 2026 requires generating PLN 2 billion in cumulative net profit from continuing operations over 4 years. Thanks to the PLN 249 million net profit booked in the first half of 2026. We have now completed 86% of this target. This leaves 14% or approximately PLN 273 million to be realized over the remaining 2 quarters. This is more than we earned during the first 2 quarters of this year. With strong back-catalog performance, the upcoming -- [ whether master ] plant also for an Nintendo Switch 2, the [ drones ] to Premier and other partnerships and initiatives, we believe in reaching this ambitious goal.

At the same time, I would like to add one key remark regarding the incentive program. Taking into account the company's current release schedule, the group will most likely not meet the performance conditions set for the second stage of incentive program for the years 2024, 2027, which was set at PLN 3 billion. Consequently, 70% of the entitlements granted to participants under this tranche will most likely not vest. As a result, we reversed the previously recognized noncash costs of Stage 2 of the program in the portion corresponding to these entitlements in the amount of PLN 11 million.

I should note, however, that assuming things go in line with our plans, we remain optimistic about the prospects of achieving the third and fourth earnings targets under the incentive program, respectively, PLN 4 billion and PLN 5 billion in subsequent 4-year periods. Thank you. We are now ready for the Q&A session.

[Operator Instructions] We have our first voice question coming from Nick Dempsey from Barclays.

I've got two questions, please. So first of all, your expenditure on development project in Q2, just over PLN 200 million, as Piotr just flagged. That's a decent step up versus Q1. Now as you ramp up towards delivering 1 of the past and the which are 4, should we expect that quarterly amount to move up again? Or is this a kind of quarterly normal peak level ahead of those games being released?

And second question, when thinking about the remaster of the which what extent should we hope for a decent uplift in revenue around that in Q4? I understand that many people will receive this for free because they bought the game already. but I'm also thinking that there will still be new players interested in buying our full price, the combination of the remaster and the 2 previous expansion. So how should we think about that in Q4?

So the increase of our expenditures on that project is rather something that we do quarter-by-quarter by growing our debt teams and getting into more advanced phases of all of the development projects we work. And like I presented on one of the slides. So getting closer to the launch of Songs of the Past will rather not influence it significantly as we will continue on all of the other front-end projects we currently work. Whereas the end of the increases, I don't know, we are not guiding. But as you may imagine, the dream of the management of the company is to continue growing getting bigger, having more projects in the pipeline and one day having even more releases.

As for the second question about the Remastered and the extent of the potential uplift in revenue for Q4. You're correct in your assumption that we're counting on both all players coming back, but also on the new players buying the Witcher 3 for the first time, both on the existing platforms and also the new platform, which was just added, which is the Switch 2. However, we are not guiding exactly on the extent. I cannot help here. But what we've been flagging before, this is one of the elements that is supposed to help us reach the goals of the motivational program this particular year. And -- but we're not guiding specifically on the revenue attached to Remastered.

So I see the rest of the questions are text questions. So I'll pass the line to CD Projekt team to read them out and answer them.

Okay. I'll maybe read the first question. It's from [ Christoph cut ] from [ Arista ].

And a question reads. I'd like to clarify what exactly you mean when you say that Witcher 4 is already running on every platform. Are we talking about a limited part of the game, used mainly for technical testing? Or is the current build already somewhat representative in terms of the games, scale and content?

So what I meant in the interview, I know which interview I have on your mind is we're launching the game on all platforms target [ levels ] such as PC, PlayStation and Xbox. And I mean here, the current build we have that we are working on. So it does not imply, it's a full game, full scale, full content. Those things happen at later stages of development. But it just means that the build, the current build that the team operates on is maintained, [ is ] launchable on each target platform. This is very important for us in the development process.

This next question comes from Grzegorz Gawkowski [indiscernible] how many unannounced game projects do you currently have in the pipeline? Was the Witcher 3 Remastered previously included among those unannounced projects or was it not capitalized, classified as a separate development project?

So maybe I'll refer to projects being currently capitalized. So those that are being in the development phase without touching the research earlier phase. In the development phase, we still have two unannounced projects. And as far as the Witcher 3 Remastered is concerned, it created along all the works on the expansion Songs of the Past as a continuation of historic investments into updating and improving the Witcher 3 and this particular project was not capitalized. What we, however, did capitalize towards the expansion Songs of the Past as well as the net Switch 2 version of the Witcher 3 as this is a [ part ] or this is an adaptation of the game for a new platform.

Okay. And the next one is from Piotr Poniatowski, mBank. Could you give us a bit more color on Project Series? What's going on there?

So as you probably know, we recently adjusted the size of the team according to the current needs of the project. The production is ongoing -- the preproduction [ series ] ongoing. And at this stage, we are focused on testing different solutions and ideas we develop. And it's also worth mentioning that this project is very different from our other projects because it's focused on multiplayer. So there's a lot of learning and testing in this particular one.

And the next question is from [indiscernible] from [ Trigon ]. And at [ Rates ].What pricing strategy are you considering for the expansion particularly versus the previous two which are expansions of Cyberpunk 2077 [ Phantom Liberty ], could pricing also serve as a way to monetize the value created by the 3 Remastered. So we're not reviewing the pricing strategy just yet that would be, of course, part of specific marketing announcements when the time for that comes. We're not super far from that, obviously, but now here and now is not -- is not the moment for that.

As for the last part of the question, I'm not sure I got it completely. What is meant here. Could pricing also serve as a way to monetize the body created by the 3 year master. But obviously, we do hope that a combination of the remaster and the sons of the past is going to rejuvenate the charter, the interest in the which universe as such. And thus, that implies also the increased interest in the expansion and its sales as well, right? I mean we hope a lot of people are going to come into the game, whether they were existing players or the new players who just purchased which are free for the first time. We do hope that a lot of them will also decide to buy the expansion.

The next question comes from Piotr Poniatowski, mBank. On the Slide 16, you have listed revenues from IP licensing. Could you elaborate more on that line? Does it include anything from the Netflix cooperation?

So this line includes revenues we generated over the first 6 months of this year on licensing our [ rise ], either the Witcher IP or to Cyberpunk IP to external partners and yes, it includes some revenue from Netflix. However, it's probably not the revenue you potentially ask for. We have a cooperation with Netflix on licensing, merchandising rights. And these being sold by Netflix include royalty for us. And this is not the biggest news of the [ season ], I would say. Therefore, it's not any of the major incomes we recorded within this line. There is altogether over 100 partners with whom we cooperated over the first half of this year. and from whom we included the revenues into this [ 90,000,095,000,000 ] presented in the presentation.

And the next one is again from Jaguari from Trigon. How would you describe the current stage of development of songs of the past? Are you still actively producing content? Or has the project already moved into the polishing and optimization phase. Well, we're not getting into details of that because if we did, we would have to narrow down the the launch date very specifically, and this is something we're keeping for a specific moment in time. So for now, we're just saying 2027, and you will have to live with that for a moment ago.

We have a voice question from Ali Naqvi from HSBC.

Can I just ask what your sort of view is on Phantom Liberty in terms of the attachment rate and how well that's performed and how does that sort of inform your view going forward in terms of [ vacate ] future games and for expansions and what you think the expectation should be there now, given the success of that?

And then secondly, just looking at the developer numbers quarter-on-quarter or maybe year-on-year, -- is there any sort of efficiency gains that you can say that have been made as a result of using new technology, AI, whatever you want to call it? Or do you think that it's sort of a false economy and it actually doesn't really bring any sort of major cost benefits, but it makes things bigger or more efficient?

I can start with the first one, maybe. So the Phantom Liberty attach rates, how well it's performed. We had a very strong attach rate for Phantom Liberty, and we were super happy with its performance. In fact, we had pretty strong attach rate for all our expansions meaning that quite a few events we decided to be the main games [ beat ], Witcher 3 free or Cyberpunk 2077 decided to reach for the content content.

So of course, it does influence thinking about the expansions because if we thought nobody is going to try them, then there would be little pointed in making them. But again, we are not guiding on specific expectations. But for sure, you can have a look at the past performance of Phantom and the previous expansions and have some conclusions from that place. The development numbers, the question, I think there was a question about what is our gain from the using new technology like AI, -- is it a false economy?

I believe there was a statement about that. Well, we're not charging AI as such. I mean, AI is definitely becoming a thing in the games development as well. We are still predominantly using people, and this is our plan to make games where we're not walking away from that AI, if anything, is a tool like many others that's helping in places that can maybe become more helpful in the future. But we're not planning to rely, I don't know, on AI, making complete games.

And to be honest, especially with very complex games like ours, I don't even think this is the right or [ Fc ] path to follow. So whether this is true for the whole industry, I'm not the person you do make those statements. I think everybody has to make those judgments on their own.

I'll pass the line back to the CD Projekt team for the text questions.

And the next question is from [indiscernible]. Could you give us some indication on when work on the Witcher 3 Remastered started and what level of investment had been involved in the project so far. Are we talking about several tens of millions of PLN?

So most of the work was carried over the last year as a continuation of our ongoing developments of the Witcher 3. I wouldn't like to comment on specific figures. However, I would like to note, as I already said, that these development costs were not capitalized.

The next question is from David Mak from Arete Research. And it says, you know, 2028 is a target release window for the that is your most ambitious project ever? Any update on its stage of production? And what are the key milestones you're looking for to assess progress.

As we have stated quite a few times before we're in a full production stage, of the Witcher 4, which roughly means a [ broad ] strokes that we know pretty well -- we know what kind of game we're making with elements and so on. And then it's filling the game with content and so on. We're not going into specific details. There's a lot of milestones we have internally. There's a pickup of specific batches pickup of specific milestones, and so we're not announcing all of them because a lot of them are very technical, very internal and actually wouldn't really mean a lot to the external audience.

But this is what is happening right now. The actual making up the game until it's release states. And every milestone is a moment for us to look at it and under where we are how well we are progressing with the development. Is anything hindering as -- is there any iteration that is required and so on and on. So I'm not sure if this is a fully satisfactory answer, but that's without getting into super rear details as clear answer as I can provide to you.

Okay. And the next one is from Piotr Poniatowski, mBank. And how about [ Her ] -- so [ Heather ] is still in the concept phase. We currently have there over 30 people and expect to hire more up to 50 developers by the end of this year. Right now, the team is mostly focused on testing and approaches, ideas and prototyping some gameplay elements. And this is -- it.

The next question comes from Rafal Wiatr, Citi. Please provide the amount of provisioning that was released in Q2 2026.

That's a pretty broad question as we have a number of different types of [ process ] that in our books. But you can find all of the details divided for different categories in note 2022 and 2023 of our consolidated financial statement.

Next one is from GeoSales from Trigon. Do you have a specific attachment rate target in mind for the next year's expansion with Phantom Liberty be the more relevant benchmark or the previous 2, which are expansions, a better reference point internally.

So of course, we're not guiding on specifics I mean, we, of course, have various scenarios of what happens. But honestly speaking, both Phantom Liberty and the Witcher expansions had really, really good attach rates. So even based on that, we do believe that we have a really solid shot at having a very strong metric for the Songs of the Past. But I'm not going to throw a specific number here. on this call, but we're optimistic in general.

The next question from Rafal Wiatr, Citi. What licensing revenues should be looking for the second half of '26? As you know, we are not guiding future results. So I'm sorry I cannot give an answer to this question.

And the next one from Piotr Poniatowski, mBank, how much revenues from IP licensing have you booked in the first quarter of '26. So what I can say is that most of the licensing revenue actually happened in the second quarter of 2026, and the minority of the amount came from the first quarter although this is part of the business that we continue 4 years. So there was some licensing revenue last year. There was some licensing revenue first quarter of this year. However, the second quarter was kind of spectacular.

The next one from Piotr Poniatowski, mBank. How much deaths are working on Songs of the Past right now? So right now, we have 220 people at this project, 170 out of full [ here ], 10 from the [ breakered ] and the rest is our source.

Okay. Since we don't seem to have any more questions, I'd like to thank you for your attention today, tonight. And should any further questions arise, our lovely Investor Relations department remains at your disposal I wish you all a wonderful evening, and goodbye until the next time. Thank you.

Thank you.

Thank you.

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to CD Projekt's First Quarter 2026 Earnings Conference Call on the 28th of May. [Operator Instructions] So without further ado, I would now like to pass the line to Mr. MihalNaBakovski, the joint Chief Executive Officer, please go ahead, sir.

Thank you, and good afternoon, everyone. I'm handovakobski, joined CEO of CD Projekt, and it's a pleasure to welcome you to our first quarter 2026 result presentation. I'll be sharing the stage today with our CFO, Petri Lobo. As usual, we reserve time at the end of the -- for our Q&A session, where Carolinas, our VP, Investor Relations, will step in to join us. .

As you probably already know, yesterday, we announced that we are working on songs in the past. That is a brand-new, fully fledged third expansion for the Wite-freewile hand that we previously referred to as 1 of our unannounced projects.

We are absolutely thrilled about this development and incredibly happy with the community's super positive reaction. Our expansion announcement is officially the second most liked and shared tweet ever on the winter profile, surpassed only by our official announcement of the new SAGA.

I got 16 million impressions within just 24 hours of the review. With that in mind, we really look forward to welcoming new comers to the White universe as well as retaining players eager to hit the trail with revote. At the same time, we are well aware that stepping back into such a beloved universe comes with high expectations and a great deal of responsibility.

That's why we're working hard to deliver to players in authentic and memorable experience. I can share that the expansion is now in an advanced phase of production around 190 developers, most of them from our trusted partner at full theory are currently working with us on the project. [

At the same time, CD Projekt read provides the creative oversight to safeguard the quality of the whither experience. We are launching the expansion in 2027 on PlayStation 5 Xbox Series X and PC. We look forward to sharing more details about it during Gamescom.

Stay tuned. Staying with the Witcher brand for a moment, I have not a huge milestone to share. According to our latest numbers at which free has now sold over 65 million copies globally, make it at 1 of the most successful titles in gaming history.

For us, this is obviously a perfect setup for everything we're planning next for the franchise. Beyond these major announcements, I would like to summarize on the key business events from early 2026.

Over the past few months, we focused on strategically expanding the reach of our flagship titles, we introduced the Witcher Free Wild and complete addition as well as the base version of CyberPnk2077 to the Xbox Game Pass premium and ultimate catalogs.

Offering these titles for subscription services allows us to attract new players to our universes. Growing our audiences works well both for our future games and for other projects within our franchises such as the highly anticipated expansion for the WochoFreeWild and and the upcoming Cyberbank adjournments to Alma series.

Alongside expanding our player base, we remain committed to ensuring our existing titles delivered the highest possible technological quality.

In April 2026, we successfully rolled out a dedicated tech update for Cyberbank2077 and it allows the game to fully leverage the expanded hardware capabilities offered by the PlayStation 5 Pro console, ensuring that exploring Night City remains a cutting-edge experience even years after the release.

We believe this will contribute to the game's last an appeal and support its sales over the long term. While we aim to continue delivering high-quality games, our long-term growth relies on building strong IPs.

The Cyberpunk trading card game, Kickstarter campaign proved to be the biggest gaming project ever on the platform and the third largest of all time which proved to us that the excitement surrounding the universe goes far beyond video games.

While only a portion of the final total of $28 million raised for the campaign, is recognized our CD Projekt Group revenue, it's still a very meaningful result for us. As it reveals the continued strength of the CyberPunk brand.

As this is a license-based cooperation, we will also participate in the games financial performance once the game launches. Now concluding my part, let me briefly comment on the current project allocation.

Since the last update, as you may see on the chart, our projects have seen only some adjustments in team sites. -- aligning with our ongoing progress and evolving workload requirements.

As we are now in the most intensive phase of the which development, the team has grown to 513 developers while the Cyberpunk 2 and Series team also grew by 1,000 or so. This reflects a stable organizational setup that has the right capabilities and expertise in place. And with that, I'll pass it over to Port, who will walk you for our Q1 financial results.

Thank you, Michael, and good evening, everyone. Let's start with our consolidated profit and loss account on Slide 9.

But first, a technical reminder. Following last year's sale of GOG, we no longer report separate business segments; and secondly, the corresponding period for 2025 and has been adjusted for comparative purposes, meaning GOG has been excluded from what we had reported in last year's Therefore, the columns for both Q1 2025 and Q1 2026, present CeleraOne, the operation will continue.

The net result from discontinued operations for the first quarter of the previous year has been presented separately at the bottom of the table. And now we can move on to the numbers.

Our sales revenue for the first quarter of 2026 reached over PLN 191 million, a 6% increase year-on-year. Naturally, the majority of this revenue came from sales of our own products, particularly the Cyber Bank family.

Additionally, we recognized revenue from the inclusion of the base addition of Cyber Bank 2077 and the 31 complete addition in Xbox Game Pass premium and ultimate subscriptions.

With the cost of sales remaining flat compared to Q1 2025, our gross profit stood at PLN 177 million. Selling and administrative expenses slightly increased over the period amounting to a combined PLN 81 million.

Finally, our net profit for the first quarter of 2026 reached PLN 106 million with the net profitability at a solid 56%. The next slide, #10, presents our consolidated balance sheet. On the asset side, we see the usual expenditures and development projects.

The balance here increased by PLN 169 million, driven by nearly PLN 180 million new development expenses offset by PLN 10 million in amortization of previously launched games. There was also a visible increase of PLN 51 million in the property, plant and equipment line item.

This was due to further expenditures on construction works and the acquisition of a property related to the plant expansion of our campus. The decrease of other current assets was driven mainly by the reduction of other receivables related to the sale of GOG shares at the very end of 2025 and some of our previously made prepayments.

The total value of cash deposits and bonds included in the 3 asset items marked with an asterisk, is summed up under the table and amounts to PLN 1.411 billion as of the end of March. As usual, I will discuss this in more detail on the dedicated cash flow slide.

Moving forward to equity and liabilities, Slide 11. The most significant impact here came from the net profit generated in the current period, which helped our equity surplus PLN 3.4 billion at the end of March.

Now please move on to Slide 12. So the prices expenditures on research works, development and cost of product maintenance presented here on a quarterly basis over the last 5 quarters. Looking at the chart, the trend is clear. We continue to scale our investments in both public and analyzed projects as development progresses. The increase over the last quarter comes from both the products developed internally as well as those created in cooperation with our partners.

And finally, let's look at our aggregated cash flow drivers on Slide 13. The PLN 106 book net profit was supported by PLN 27 million in amortization, depreciation and noncash costs of our share-based incentive programs. At the same time, PLN 43 million was spent on the acquisition of tangible and intangible assets.

The overall change in receivables, liabilities, provisions and deferrals posted our cash flows by PLN 34 million, mainly thanks to the natural decrease of trade liabilities after the intense end-of-year sales. Other cash flows were mainly driven by the difference between the income tax recorded in our P&L and actual transfers related to income tax during the reported period.

Excluding investments in currently developed products, our ongoing business generated PLN 148 million in positive cash flows during the first quarter. At the same time, most of our team was engaged in work on new projects. Hence, the nearly PLN 150 million outflow associated with development expenditures.

Additionally, at the beginning of January, we received the already mentioned payment for the sale of GOG shares, which after transaction costs bolstered our cash position by PLN 87 million. All in all, during the reporting period, our financial reserves, cap in cash, bank deposits and bonds increased by PLN 86 million, standing at over PLN 1.4 billion at the end of March.

To conclude my part of the presentation, let me briefly walk you through where we currently stand in achieving the goal for the first stage of our share-based incentive program.

Please move to Slide 14. The earnings condition for the 2023, 2026 period was set at PLN 2 billion in cumulative net profit from continuing operations. Following a solid first quarter, we still need PLN 418 million to reach this target. The goal remains highly ambitious.

Nevertheless, we have both gaming and nongaming projects in a full year advanced stage of production and some initiatives we are working on. We believe we have a chance of meeting the goal. That's all from me. We are now ready for the Q&A session.

Thank you. Thank you very much for the presentation. [Operator Instructions] question as a tax, I will just give a mono so for the questions to comment. Okay, since we seem to have no voice questions. We have a few in the text form and the first 1 is from Christoph Koch from Erste.

And the question is, is the company satisfied with the current quality of the new which are 3 expansion developed in cooperation with full theory.

And the short answer is, yes, we are. I really have no -- not much more to add here.

The second question comes from Christophe . During recent conference calls, the company indicated that it plans to release a project in 2026 that should support the achievement of the incentive program targets. Was this project sums of the past was the expansion originally targeted for 2026? If so, should we expect its release rather earlier than later in 2027?

So for several quarters, we've been disclosing that our pipeline includes some unannounced projects being in an advanced production stage. And one of those is the expansion being codeveloped with full theory. Our early plans assumed that songs of the past could be released this year.

However, we decided that it will be launching in 2027. We obviously have some other content currently at an advanced production phase as well. And while it's obviously not on the same scale as the major expansion, we still plan to release it this year.

Okay. The next question I have is from -- we have this from colas and from Benari -- and the question reads, how should we think about the scope and average selling price which are free songs of the past? Is it more comparable to hearts of stone or blood and wine?

These, first of all, I cannot stop myself. It's not a DC. It's an expansion. We differentiate between these 2 deals. These are the ones -- the smaller ones, which we typically give for free expansions are the bigger and juicy ones. It may be semantics for some people, but it's pretty important for us.

On the price, we are not really commenting. We're going to reveal that's when the right comps. It's part of the marketing messaging. Messaging whenever the time is going to be right, we're going to put it out there. When it comes to the scope, I'd say it's actually a little bit closer to blood and wine, but this is super subjective.

It really depends on your on how you're going to play, what you play through, but we're definitely making a proper big expansion is the message I would send out there.

And the next question, I might try and take as well. It's also from as of the cat from Erste. And it reads given the very ambitious project pipeline does the company see room for developing expansions for the new Whitters.

Okay. So since -- as you mentioned in the question, the plans are pretty ambition -- ambitious. Specifically, it's the release free, which again within a 6-year period. It would be difficult to be very honest, for us to add an expansion to the upcoming Trilogy. This is where we are here and now with this particular issue.

So the next question is from Nicolas Langlet, Pariba. Based on current advancement of our pipeline, are you comfortable to match the 2024, 2027 incentive program earning target?

Well, so the answer is pretty -- it's kind of philosophical. All our goals are always extremely ambitious. And that one, of course, also we see as an ambitious one. So there is nothing more to comment that I already did during my first part of the presentation. .

And the next 1 is also from Nico. Would you say White development team has reached the peak or it could further increase in the coming quarters? .

We believe that we, right now, have the right mix of expertise and skills. But of course, we may slightly adjust the team size depending on the needs.

And the next question is from Thomas Rodak what was the reason of postponing the view of sons of the past 2027. Earlier, you implied that the product developed by first Terry will be released this year?

So this ties back to what I think Cort mentioned earlier, where we we basically reported during our investor calls, and we were giving the updates on various projects, including unannounced ones.

And obviously, the full theory 1 was -- well, the sons of the past specifically was 1 of them, but we never specifically were suggesting a date for any of them because we were not really naming them.

So as also -- got mentioned before in 1 of the questions that were asked in here in the written form we had a moment where our plans assume that some in the past will be released this year. However, we decided together with the development team that the game will be launching in 2027 for -- to be honest, for its best to achieve the best possible result from the consumer standpoint, which, in the end, frankly speaking, is the only ultimate thing that that really matters.

The next 1 is also from Thomas Seda during the red stream. It was set at songs of the past will be showcased during upcoming games come conference at the entertainment area. Does it in play -- does it imply -- I'm sorry, a trailer or hands on experience. So we're saying we're going to be showing the game there.

I cannot really talk for the details, but what I would actually suggest is that historically, when we were showing which are gains we were typically doing a guided demo kind of experience. So probably you should be thinking more in those lines. rather than hand in these periods.

These are big games very large RPG experiences and having a 5-minute session with a game like that would not really give you a lot. So we're more likely going to be following the trail of what we've been doing in the past with a free or for that matter with CyberPunk when we were announcing it as well.

The next question comes from Michel chiros, Ipopema Securities. Was the decision regarding lack of dividend payment driven by delay of songs of the past or where there are more reasons. Cash flow seems still relatively healthy for Q1 '26.

Thank you for this opinion. Cash flow is 1 thing and also our cash position is pretty strong at the end of the first quarter. And songs of the past is relatively soon. I'm sure we will still have a lot of money on our bank accounts and in our bonds on the day of launching the sense of the past. So it's definitely not the thing.

But to put it simply, we always plan all of the developments we have in our pipeline looking at the long term, and we are growing the studio into a multi-project development team or teams working together, and we know we have to secure all the financing for all of the projects being run at the same time plus when they are to be published.

Also, we have to take into consideration the marketing budgets that needs to support each and every launch. And on top of that, we obviously want to maintain also a solid financial cash and -- this keeps us be flexible on a day-to-day basis and also allows us to jump on new business opportunities if they appear.

Okay. We have 1 more question from Pit Panatoski from mBank. And the question is, would it be possible to play songs of the past on PlayStation 4 Well, the answer is no.

I mean, we're targeting with this release, PlayStation 5, Xbox Series X and PC. So the last gen consoles are not going to be part of the release.

And I have also 1 more question this time from Nick Dems from Barclays. And the question is I know that you once to set out an exact time line for all of the releases in the world of the Witcher, but just commercially, in order for songs of the past to be allowed a good run at selling the kind of units you are hoping for. how much of a time gap would be sensible between the release of that expansion and the release of the 4?

That's a very complicated question but we're not really commenting on time lines and dates because answering that question specifically would really be doing that. and we're not. Like we haven't actually even set out a very specific date for songs of the past, just said, and we have not made any comments in the past and are not going to make them today, of course, for the 4 release date. So I'm afraid I'm going to have to ask you to be a little bit more patient.

The next question is from Thomas Roddy. Could you please comment on what are the financial targets for the motivation program are still considered achievable.

Please refer to the stage ending in 2026 and the stage ending in 2027. So as I already said, both are really ambitious, nothing is guaranteed, but we still believe that with the products we have in our pipelines. And with the initiatives we are currently working on we have a chance of reaching the goals of our incentive programs. .

Okay. And we have 1 more question from Sebastian Grabowski from ISB.

How do you see the role of Cyberbond TCG in this universe after successful kick starter. Do you plan to take stronger supervision on this project since your partner is actually a startup. Well, the role of CyberPoint TCG potentially can be massive and very important for us in terms of how it's with spreads, how it keeps the IP rolling amongst the fans of this particular way of having fun off-line. Do we keep to have a stronger supervision over weird co?

Well, not really. They are specialists in what they do. And in fact, even though they are a start-up, I mean, they came -- they come from a pretty experienced back and they have a long history of working in the TCG environment.

So I don't think we can -- even if we wanted, so we could actually give them value added in terms of how to make TCGs, if this is the question they know how to make them, they know how to sell them, they know how to market them. What we do give them, of course, is our help with law, our help with making sure that they stick to the what is Cyberpunk truly to the bot -- and of course, we help them in communicating to our community. So the find of cyber point, but that's as far as we go. We don't really go beyond that. And we don't really think they need that either.

Next question comes from Sebastian. How many not announced gaming projects in advanced stage you work on currently?

Let's define the advanced stage as those projects were being capitalized currently. So there are 2 unannounced gaming projects capitalized and also on nongaming project. .

Okay. And the next 1 is from David Mack from Arete Research. How does the release of songs of the past influence your thinking around the Wucarelease? Could the Expansion Act as a good reminder prologue in the marketing ahead of the Whitford which have 4 be released shortly after songs of the past? Or will you delay to maximize impact?

I'll start from the end. On the timing of what's going to be released and when exactly or how far apart from each other, we're not going to comment on that. In terms of the first part of the question, it's actually pretty interesting because it's probably going to be in a way all of that.

I mean, first and foremost, we really wanted to deliver a great experience to the fans, a really cool expansion that's going to have people that's going to make people happy that they can come back to the chore setting.

But of course, indirectly, yes, it is a reminder. It is, in a way, a prologue, although it's not eproogin a very betting way of it's a product the actual which are.

And yes, you can look at it as it's a way to maintain a certain chatter on the which of free. But all of those are like side effects, additional side effects. But the core thing for us from our perspective is really delivering a high-quality fund experience to the existing fans of the Witcher.

And I can also move straight to the next 1 from Potosi from what's going on with the mobile project? Is it the story for 2026?

Again, we don't comment on timing, but this time, I will make a small comment. It is definitely not a story for 26. We've been previously suggesting that this is going to take some time Scopely and their team.

They're very iterative, and they work very, very fast and very hard. But it's more about iteration and reaching a certain level of satisfaction that is felt on both sides, both them and us. So things are happening. But once again, it's definitely not a story for 2026.

Okay. It seems that we have no more questions. I would, therefore, like to thank all of you. I appreciate your time, your attendance. And obviously, should any further questions arise, come up, our lovely Investor Relations department remains at your disposal always. Otherwise, I hope you guys are going to have a wonderful evening. Goodbye and talk to you soon. See you also Bye-bye.

Thank you. Goodbye. This concludes our call for today. Thank you, and goodbye.

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to CD Projekt full year 2025 earnings conference call on the 19th of March.

[Operator Instructions]

Without further ado, I would now like to pass the line to Mr. Michal Nowakowski, the Joint Chief Executive Officer. Please go ahead, sir.

Good afternoon. Hello. My name is Michal Nowakowski. I'm the Joint CEO of CD Projekt, and I will be hosting today's conference dedicated to CD Projekt Group's financial results for 2025. I will be co-presenting with Piotr Nielubowicz, our Chief Financial Officer, and after the presentation, we will invite you to participate in a Q&A session where we will be joined by Karolina Gnas, our VP and Head of Investor Relations. Starting off, I would like to briefly comment on an important event that took place at the end of 2025, namely the sale of GOG, the digital distribution segment of the CD Projekt Group. The rationale behind this deal is pretty straightforward. We want to focus entirely on game development and expansion of our franchises. As you know, we are upscaling our operations, working on multiple AAA projects simultaneously and developing new products around our IPs.

This dynamic growth demands our full attention and resources. What I do want to emphasize is that GOG remains an important distribution partner for us, and our plan is to continue releasing our future titles on this platform. Speaking of our games, moving to that subject, to the tenth anniversary, as we celebrated the tenth anniversary of The Witcher 3 release, we announced that the game has already sold over 60 million copies. If we include the first two installments of The Witcher trilogy, we arrive at a pretty nice figure of over 85 million copies sold worldwide. That is a stunning achievement. Seeing our games reach such a broad audience confirms that our stories and worlds continue to live on and resonate with gamers for years.

This, of course, makes the whole CD Projekt RED team very proud and motivated, especially as we continue to work on The Witcher 4, which will open a brand new saga in this universe. Yet we continue to explore new ways to introduce The Witcher games to new players. The inclusion of The Witcher 3: Wild Hunt - Complete Edition in the Xbox Game Pass library is a great opportunity to attract more gamers to our universe. In the 10 years since the release of The Witcher 3, an entirely new generation of players has emerged, many of whom have never fully experienced Geralt's story firsthand. Bringing the game to Game Pass allows us to bridge that gap and lets new players discover why The Witcher 3 became such an important title for so many others.

It's also a natural moment to reignite interest in the universe ahead of the new saga. Besides The Witcher games, we are also active in what we call the franchise flywheel area. What you see here is just a part of our recent achievements in this field. From a worldwide concert tour to merchandise, comic books, board games, and collaborations with other titles, we remain active on many fronts. By doing this, we offer our fans the opportunity to interact with The Witcher brand in various engaging ways, enabling them to stay immersed in the universe while anticipating our next major release. Importantly, in addition to the positive indirect effect of supporting sales of the games from The Witcher universe and helping keep the franchise relevant and visible to players, all these activities also have a direct material effect.

Since the release of The Witcher 3 in 2015, our franchise flywheel projects centered around The Witcher brand have brought in an extra PLN 100 million in revenue. Moving on to our second pillar, that is the Cyberpunk franchise. In 2025, we had the great pleasure of announcing further sales milestones. The base edition of Cyberpunk 2077 has sold over 35 million copies, whereas sales of the Phantom Liberty expansion crossed the 10 million mark. These numbers are the result of our continuous support for the title and commitment to enriching player experience. We still periodically roll out new smaller features and updates to the game, and we intend to continue doing so. Long-term support for our flagship titles is an important part of our strategy, and it's helping us sustain player interest and ensure that the game continues performing well in the long run.

Alongside our continuous support, bringing Cyberpunk 2077 Ultimate Edition to new platforms certainly boosted our sales figures as well. Last year, we released the game on Nintendo Switch 2 on the very day of the console's global launch. The title also made its debut on Mac devices with Apple silicon processors. Furthermore, last July, the base edition of the game was for the first time ever included in a subscription service entering the PlayStation Plus catalog. Following up on that, on Monday, we announced that Cyberpunk 2077 will get, in the following weeks, a free tech update that will take advantage of the expanded hardware capabilities offered by the PS5 Pro console. What's more, over a week ago, the game had joined the previously announced The Witcher 3: Wild Hunt in the Xbox Game Pass catalog.

Just as with the PlayStation Plus catalog, the game is offered to subscribers in its base version. Players who wish to delve even deeper into the Cyberpunk world have the option to do so by purchasing the Phantom Liberty expansion separately. As for the franchise flywheel area for the Cyberpunk world, we are just as active here as in The Witcher universe. Our creativity and ambitions go really far. Together with our partners, we step beyond standard categories, offering unique products such as dedicated AR glasses, arcade machines straight out of Night City, or an upcoming proprietary Cyberpunk trading card game, by the way, whose Kickstarter campaign launched this week, already being the most funded TCG campaign launched on this platform, and those are only a few examples.

Since the release of Cyberpunk 2077 in 2020, our franchise flywheel activities have generated nearly PLN 70 million in additional revenue, which clearly demonstrates the strength and appeal of this brand. That's not the end. We have an important development update regarding our third franchise, Hadar. Work on the project is progressing dynamically, and the team has established the foundations of this entirely new IP. Now, we have clearly defined distinguishing features of this world and established key pillars that will not only provide a foundation for the game itself, but also potentially for other future products. Of course, this does not mean the end of work on IP itself, which will naturally continue to evolve and develop on many fronts over time. The team is now actively designing specific elements that might be included in a game.

We are creating multiple prototypes and implementing them directly into our real engine. This allows us to live-test and verify how selected mechanics and gameplay elements can perform. To conclude my part, let's briefly discuss changes in the size of our development teams. As of the end of February 2026, we had over 900 developers on board, meaning that an impressive number of more than 220 developers have joined our teams over the past year. Compared to October last year, most new hires are now part of the team working on The Witcher 4, where they help improve quality and scale-up solutions presented in the Unreal Fest tech demo across the entire game.

Having gained greater visibility of the game's scope, we are strengthening our internal teams, while at the same time recruiting top-class talent to provide long-term support in delivering both The Witcher 4 and our future titles. Of course, these headcount numbers only reflect the projects we are developing internally. They do not include projects that we do in cooperation with our external partners, including the one we are working on with Fool's Theory. We plan to reveal more information about this specific project later this year. In the current year, we plan to continue strengthening our development teams, working on key projects, and we want to continually attract the best talent in the industry, offering them a space for safe and inspiring development.

Now, that would be all from me, and I'm going to pass you into the hands of the one and only Piotr Nielubowicz.

Thank you, Michal, and good evening, everyone. Let's start the presentation of our 2025 financials with the consolidated profit and loss account on slide 13. First, a technical remark. Following the sale of GOG, which Michal already mentioned, effective January first this year, the group is continuing with activities previously described as the CD Projekt RED segment, so we will no longer distinguish separate segments in the context of our business and reporting. Accordingly, the GOG segment has been excluded from the consolidated P&L, and in accordance with IFRS, is presented as discontinued operations. Thus, the group's figures for 2024 and 2025, down as far as the net profit from continuing operations line, do not include GOG and present CD Projekt RED exclusively. Now, after this technical introduction, we can move on to numbers.

Our CD Projekt RED sales revenue for 2025 reached PLN 867 million, a 9% increase year-on-year. The main revenue drivers were sales of our own products, especially the Cyberpunk franchise, which performed 12% better than in 2024. Cyberpunk 2077 and Phantom Liberty's long-term performance is visible on the next slide. In 2025, we recorded solid sales bolstered by two major events. As mentioned by Michal, the first was the June release of the game's Ultimate Edition on Nintendo Switch 2. The second event supporting our sales revenue was the introduction of the base edition of Cyberpunk to PlayStation Plus Extra and Premium subscription services. At the same time, visible on the next page, revenues from The Witcher 3 remained strong, though they were lower than the year before, when we booked significant revenue from making The Witcher 3 available on PlayStation Plus.

Coming back to our P&L, the Cyberpunk launch on Nintendo Switch 2 also visibly impacted our sales of goods and materials line, where the 5x year-on-year increase was driven primarily by sales of physical cartridges for the Nintendo console. Cost of products and services sold were reduced by half in 2025, mainly for two reasons. First, the application of a declining amortization model, and second, the extension of the amortization scheme based on a re-estimation of the useful lives of our assets, which took place at the end of 2024. The cost of goods for resale and materials sold grew in line with the increased sales in this category and related to the Cyberpunk physical cartridges for Nintendo Switch 2. Moving to operating costs. Our selling expenses grew by PLN 27 million, reaching PLN 119 million.

The largest share and growth were attributable to promotion and servicing costs dedicated to Cyberpunk 2077, especially on the new platforms. When it comes to administrative expenses, they were slightly lower than in 2024. This was mainly due to lower research costs for games in the early conceptual phase. For most of the comparative period, these included expenditures related to Cyberpunk 2, which started to be capitalized back in 2024. In 2025, the research works line item was driven mainly by work on Project Hadar and some other tech and AI development projects we run in-house. All of the above resulted in an operating profit of over PLN 470 million, a nearly 30% increase year-over-year.

In 2025, the group reported again over PLN 60 million surplus of financial income over financial expenses, resulting mainly from interest income on bonds and bank deposits. Moving further to our income tax. In 2025, we recorded an effective tax rate of 3.2% within consolidated continuing operations. This relatively low rate was primarily influenced by the application of IP Box and R&D tax reliefs. The offsetting of capital gains income against tax losses from previous years, resulting in no capital gains tax and an increase in deferred tax assets, resulting mainly from the expected future increased utilization of the R&D tax relief. On top of the above, we have adjusted from 2025 to 2024 the correction of withholding tax from previous years.

This resulted in a change of nearly PLN 26 million, which reduced the tax this year versus what we were presenting in our intermediate reports and increased the tax level in 2024. As part of the year-end closing process, we decided to change the presentation by restating the comparative period as this approach was deemed more appropriate. As a result, the reported tax and net profit for 2024 you see here differs slightly from the figures we presented a year ago. Finally, our net profit from continuing operations reached PLN 521 million, making 2025 the second-best year in our history. This is nearly 1/5 higher than in 2024, a result we are really happy with. The net profitability of over 60% speaks for itself.

Adding nearly PLN 74 million from discontinued operations, representing the after-tax gain on the sale of GOG and its 2025 net results, our total net profit reached an impressive PLN 595 million. I always like to look at results and trends in a longer perspective. Therefore, the next slide presents the financial performance of our continuing operations, basically the CD Projekt RED segment. Our sales revenues are represented by the height of each entire bar. The gray part represents costs and taxes, and the remaining green part shows our net profit for each year.

This perspective demonstrates not only that the past year was the second-best year in our history in terms of net profit, but also that our net profitability reached a historically high level of 60%, comparable only to 2020, the record-breaking year of Cyberpunk 2077's launch. The data reflect our continuing operations with no influence of the GOG transaction.

Now we can move on to the next slide #18, our consolidated balance sheet. On the asset side, first, the core of our business, expenditures and development projects. The balance for the full year 2025 increased by PLN 453 million to nearly PLN 1.150 billion. New developments, mainly The Witcher 4, Cyberpunk 2, and Sirius, as well as several projects that are still unannounced, accounted for over PLN 0.5 billion of new investments.

At the same time, there was a PLN 57 million decrease due to amortization, driven mainly by the already released Cyberpunk 2077 and Phantom Liberty. In line with the recent and planned expansion of our development activities, we continue to invest in our infrastructure, as seen in the PLN 72 million increase in the property, plant, and equipment line item. This was mainly driven by the investments at our Warsaw campus, namely the final touches to the construction and fit-out of our new office building, which since June houses The Witcher 4 team. The second investment has been our new performance capture studio, which is expected to be completed this year.

In 2025, we also expanded our Boston office, which required certain investments into fit-out and equipment. The significant growth of our added current assets is the result of increased balance of advance payments and advances to our contractors and suppliers and outstanding receivable from the sale of GOG shares at the very end of December. This receivable was paid at the beginning of the current year, which will naturally be reflected in the cash flow in Q1 2026. The total value of cash deposits and bonds included in the three asset items marked with an asterisk is summed up below the table and amounts to PLN 1.325 billion as of the end of 2025. I will have a separate slide to provide some more insight into our main cash flow drivers for this year.

Moving forward to equity and liabilities, slide 19. The most noticeable change here is the increase in our equity, driven by the strong financial performance of 2025 and the recognition of costs related to incentive programs, which together significantly offset the reduction in equity resulting from the 2024 dividend payout. Anticipating your possible next question, the board has not yet made a decision regarding the recommendation for the allocation of 2025 profits. When it comes to liabilities, the decrease is mainly due to the absence of GOG's trade liabilities at the end of 2025, as they were part of this line item at the end of the corresponding period.

Now please move on to the next slide #20. CD Projekt RED's expenditures on research works, development and cost of product maintenance, presented here on a quarterly basis for 2025 and the comparative periods. The bars speak for themselves. Our production capacity is gaining more and more momentum. Investments in our projects, some public, some unannounced, are constantly growing. The majority of what we present here in green relates to capitalized projects, which reflects their stage of advancement as well as our confidence in their future economic potential.

Finally, our main aggregated cash flow drivers on slide 21. Cash wise, the PLN 521 million book net profit from continuing operations was supported by PLN 112 million in amortization, depreciation, and non-cash costs of our share-based incentive programs. At the same time, PLN 125 million was spent on the acquisition of tangible and intangible assets. As discussed on the balance sheet slide, our typical cash flow working capital corrections largely offset each other.

Summing it all up, we generated an estimated positive cash flow of PLN 512 million from our ongoing business. This figure is almost equal to our spending on development projects for the full year, which amounted to PLN 513 million. We can therefore say that our current cash flows allowed us to fund nearly 100% of our development expenditures in 2025. On top of that, at the beginning of July last year, we shared with our shareholders a nearly PLN 100 million dividend, which was later followed by a PLN 22 million share buyback. The last position here reflects the cash at GOG. Before the transaction, we received a PLN 44 million dividend from GOG. Following that, on the transaction day, GOG had PLN 23 million on its bank accounts, and we sold the company with that cash balance.

Therefore, both the company and its cash left the group, and we have reflected this, that in the calculation. All in all, our financial reserves held in cash, bank deposits and bonds decreased by PLN 147 million over the reporting period, which was by far the year of the most intensive investment in development projects in our history. Our financial reserves stood at a solid PLN 1.325 billion at the end of 2025. Moving on, as we are concluding another year, I would like to show you where we currently stand in terms of achieving the goals of our share-based incentive programs, especially the first stage, which concludes at the end of the current year. Please move to slide 22.

The earnings condition for 2023 to 2026 was set at PLN 2 billion in cumulative net profit from continuing operations. After three out of four years, we are at 74% of the goal. PLN 527 million still remains to be earned this year to reach the target. As always, I'd like to emphasize we still see it as a very ambitious goal. We continue to believe that with strong back catalog sales performance this year and the new content we are planning to release, we have a fair chance of reaching it.

That concludes my part of the presentation. We can now move on to the Q&A session.

[Operator Instructions] Okay, our first voice question comes from Nick Dempsey from Barclays.

The first one, just sort of based on the current trajectory of hiring and your further plans for that as we get closer to the launch of The Witcher 4, would you expect the cash expenditure on development projects to step up notably in 2026 versus the PLN 513 million that you reported in 2025? Second question, in terms of what the project that Fool's Theory is working on, if that is going to contribute to your revenues this year, when would we need to first hear about it? In other words, what is the gap between it being launched and it being first mentioned to the world what they're working on?

The last question, Yes, in terms of hitting the PLN 2 billion from incentive programs, I guess the Game Pass inclusions will be one help. Fool's Theory may be another. Could there be anything else that will be helping to fill up that '26 that's remaining?

Hello, Nick. Piotr here. The first question was on the increased expenditures on developing our games further to getting closer to The Witcher 4 launch. The general answer is yes. As it was presented during my presentation over the last two years, we were stably growing the expenditures on research and development of our games. As we also guided some time ago, we plan to increase the total developers' headcount of the company. This will naturally translate into higher expenditures over time. You ask whether the step up will be noticeable. This is obviously somehow subjective, but we are not planning to do something unexpected or going out of the trends that historically applied for the company.

In terms of the project from Fool's Theory, as it was said, we will come back with more news later this year. For now, we have nothing to share. We're not sharing anything yet. Having said that, and already moving to the third question, as far as the incentive program goal is mentioned, in order to reach it, we need good sales of the existing back catalog, we need new products to launch successfully, and we need continuation of the great monetization of our franchise flywheel and all of the supporting products. With all that run successfully, we believe we can help for reaching the goal. As I said, it's ambitious and nothing's guaranteed.

Our next voice question comes from Piotr Poniatowski from mBank.

Hi guys. Congratulations on the financial results. If we can go one by one because I got a set of questions, and probably the first ones are for Michal, I think. First of all, could you share your take from GDC? What were the main topics there?

Okay. You want to go one by one like that? I thought you're going to list all of them first, and then we're going to go. That's probably easier, actually. Talk from GDC. Well, we had a bunch of actually business meetings which are kind of confidential, so I cannot share. If you're asking more of what was the main word on the streets, then obviously the main subject in the industry continues to be AI. Of course, this is the thing that everybody has been talking about.

A little bit on consolidation sides, as we've seen quite quite big moves, quite big acquisitions happening last year, of course, EA and so on. I'd say like on the street level, big, small developers, everybody's been talking about AI, where it's going to take us, what's the future ahead and so on. This was definitely the main thing.

All right. Like a follow-up, what's your opinion on the direction the market might take given the, let's say, leadership change at Microsoft Gaming? Would it be more AI in the development of games or?

Can I ask again? That was a question about the change of leadership at Microsoft specifically?

Yes. Yes.

Okay. You know, it's very hard to say. I mean, I had a chance to both say goodbye to Phil and meet Asha Sharma while there. It was literally she's very fresh in the role. She's just taking the reins of the Xbox division and figuring out what's what and so on. She's a super smart person, and Phil has been very welcoming her. The team has been very welcoming to her. She took the time to meet, I think, a lot of people from the industry, which is always a good sign. It's not that stage yet where they share like thoughts as in, is there going to be more AI, less AI, or any specific moves.

I think what we all heard from her, and also from Phil Spencer, who is sort of stepping down, is that they do want to go behind the Xbox brand a lot, and that this was the main take from that meeting, but nothing really deeper than that just yet. I'm sure we're going to hear more in the future.

All right. Thanks. Could you comment anything on your meeting with Kojima? Are you cooking anything with them, with him?

We didn't meet Kojima at GDC, but I'm understanding you're referring to.

November, Yes.

Last year's meeting. Well, if we were cooking anything, of course, as is typically the case, conferences are not the place to confirm that at all. To be frank our relationship with Kojima goes way back. He visited us in the past. You know, when we're in Japan, we like to pay him a visit. We did collaborations like an Easter egg in CDPR. I'm specifically toning down the expectations here because this is more the direction of our relations with Kojima so far. We admire him. He's a great creator. I think he likes us as well. But that's about that.

Okay, thanks. I had to ask. Yes, some questions regarding your, let's say, projects you have announced, but we don't know what's going on there. Maybe with live action project, are you already capitalizing costs of it or what's the stage of it?

The question is about unannounced projects.

Unannounced.....

In general.....

You had already announced that you are, let's say, thinking about live action project.

Live action. Okay, you mean live....

Yes....

Yes, I mean, there's nothing new we can announce, sadly. I really would love to share more with you. But this is not the moment where I can add any crisp details for you to chew into. We are working towards it. We see some movement that's we think is interesting, but it's far from the point where we'd be able to kind of go out of the tube and say, this is what's happening. So unfortunately, you're going to still have to bear with us. And there is no capitalization going on of any kind in that regard. Like, our list of unannounced projects does not include that specific one.

Okay. Does it include mobile project made with Scopely or also not?

So the Scopely......

I can take this one. Unless, Michal you want. Scopely does the job on their side, and we're obviously not capitalizing work done by a third party who is running the job and who will be finally publishing the game.

All right. Can we expect it to happen this year, the release, or you don't want to share anything yet?

I mean, we don't have anything specific when it comes to dates to be shared, but I would really rather assume this is something to look forward to later than a year from now. I mean, these things take a lot of time to iterate test internally with test scripts and so on. I would really not expect anything very soon.

Okay. Thank you. Thank you very much. We don't have any other voice questions at the moment, so I'm going to pass the line to the management team for the text questions.

The first question is from Krzysztof Kot from Erste. "What does the quality control process look like for projects developed by external studios such as Fool's Theory? Are you satisfied with the cooperation with this studio?" In case of this cooperation and a few others, actually, we have a dedicated internal QA team that monitors development progress on an ongoing basis and of course participates in checking out these projects for playtest and so on.

There's also a group within CDPR that supports external teams, provides them with feedback, anything else they may need in terms of, I don't know, lore or any specific assets, helps them to to develop project solutions and ensures any lore consistency troubles they may run into are solved as well efficiently. We also usually work according to some milestone schedule projects like that. There is quite a bit of our involvement, and we actually prepped a setup for that. Yes, we're quite satisfied specifically with Fool's Theory, where we are with them, and when the project we're working on with them is heading. I'll actually stay online.

The second question is from Grzegorz Balcerski from Trigon. When do you plan to ramp up marketing efforts for the new game content you've announced for this year? Should we expect a longer marketing campaign, several months or weeks? Or is a shadow drop still a possibility? I like to say everything is a possibility. Having said that, our experience and our preference for the type of games we make is a little bit longer term marketing campaigns. We think they tend to work a little bit better than a simple mic drop at some conference or event. Yes, I would rather point in that direction.

The next one is from Michal? Wojciechowski, IPOPEMA Securities, and I will take this one. The question is, good evening. Could you comment on the increase in The Witcher 4 team? During previous calls, you suggested that the team size should not expand. Has your approach changed? Do you expect further increase? What I'm about to say I think is true to all projects. The further you go, the more visibility you get. As for The Witcher 4, we are adjusting the size of team to meet our production needs. Right now, The Witcher 4 team is around 500 people, and we are now hiring where we see gaps. But also we take some opportunities when exceptional talent becomes available, obviously. One more important point here, we are currently using less outsourcing that was planned.

Cost-wise, these two things like naturally balance each other.

The next question comes from Nicolas Langlet, BNP Paribas. Can you update on the number of unannounced projects you have and how many might release in 2026? In general, we probably have a wider number of unannounced projects, but those ones in the more advanced stage, so those ones that are being capitalized. As of December 31, 2025, in the books we discussed under the expenditures on development projects in progress, we actually had four such projects, unannounced, already capitalized, out of which one was non-gaming and three were gaming projects.

Okay. The next one is also from Christoph Koch from Erste. The question is: Is the technological update for Cyberpunk 2077 being developed by Virtuos?

I'm assuming this is about the PS5 Pro update we discussed in the conference. The answer is no. This is developed with a different partner. It's actually the answer is we're partly developing it in-house in collaboration with the external partner. Specifically, this is Yigsoft from Hungary.

Another question from Nicolas Langlet, BNP Paribas. Do you need more than one unannounced project to match the 2023 to 2026 management incentive program? Unfortunately, I cannot comment on that as probably there is no good answer that could be definitive and sure. Another one also from Nicolas Langlais. Game CapEx reached PLN 153 million in Q4 '25 and PLN 513 million for the financial year '25.

How should we think about the evolution of development spend and headcount in 2026? I partially already covered that. Although we are not guiding precisely, or we are not guiding the future, the natural law of development is that the closer you get to launch and the more advanced the projects are, usually the team also grows. Right now, we're running multiple projects, some at an earlier phase, some more advanced. In general, the investments that we will be making into them will most probably naturally grow.

Okay. The next one is from Grzegorz Balcerski from Trigon. Why did you decide to make The Witcher 3: Wild Hunt - Complete Edition available on Xbox Game Pass? Typically, in such partnerships, you've made the base game available, hoping to boost DLC sales. Could this be related to the planned new content for existing games? I like that question. It's very detailed.

You know, the truth is the game has been out there for almost 11 years, 11 will be, I think, made this year. You know, we've been selling for most of that time GOTY version with so the one with 2 expansions, as you noted, for many years as well. I think we just came to that moment in the life cycle of the game where this was more attractive from the new players' perspective. As we mentioned, we want to kind of bridge that generational gap, perspective. This is more attractive offering to allow them to familiarize themselves with you know, with The Witcher adventures before you know, the upcoming release of The Witcher 4.

The next question came from [ Sebastian Golkowski ], [indiscernible]. Could you comment on current year's expenditures in comparison to '25? Actually, we do not guide on future costs. However, together with accelerating projects and new recruitments, you can naturally expect the expenditures to increase this year comparing to the historical 2025.

Okay. Since we see no further questions, I think that's going to be it for today. We really appreciate your attendance and should any questions arise after this call, any afterthoughts, any additional inquiries please direct them to our magnificent investor relations team. I'm sure they will be happy to pick them up and come back to you. Otherwise, I wish you all a wonderful evening and goodbye and till the next time. Thank you.

Thank you. This concludes our call for today. We are now closing all the lines. Goodbye

Good morning again, and welcome to everyone here in the room as well as those watching online streaming. Welcome to the Extraordinary General Meeting of CD Projekt S.A. My name is Adam Kicinski and I'm the Co-Chair of the Supervisory Board and I hereby open the Extraordinary General meeting of CD Projekt S.A. convened as of today, that is the 11th of March 2026 at 10:00 a.m. Before we move on, let me ask a representative of the company managing the voting system to present the instructions for casting votes.

Thank you so much. Good morning, ladies and gentlemen. You have received voting tablets once you've signed the attendance sheet. On the tablets, now you can see 2 buttons. One of these marked your data, you have information on your representation in this particular general meeting, the number of shares and votes. And under the second button described as documents, you have documents pertaining to this particular event, this session, this Extraordinary General Meeting. So whenever the voting is not on, you can review these documents and their content.

As to the vote casting system and process, once a vote has introduced the tablet shift into the voting mode, automatically, you will see decision buttons and you will select your decisions. In the next screen you'll see a summary of the decision you've taken. And then if everything is all right, you tap confirm and the vote is casted and registered in the system. If on the second step, someone realizes they have selected the wrong decision, they always can tap back, then select the right decision and then in the next step, if upon verification, everything is still alright, they can confirm and the tablet registers the votes, and we wait until the voting is over.

Once the voting is completed, the results will be presented both on the screens and the tablets and read by the person managing the vote. Of course, the tablets allow for both confidential and nonconfidential votes as required. So I wish you a fruitful deliberation, and thank you so much for your attention.

Thank you. And let's start with this first item on the agenda, that is selecting the Chair. Please propose your candidates.

I would like to propose the candidate of our legal counsel, Agnieszka Kania as the Chair of our today's general meeting.

Do you approve?

Yes.

Are there any other candidates? I can see none. So let's vote confidentially on resolution #1 of the general meeting on the selection of Agnieszka Kania as the Chair of this present general meeting. Please cast your votes.

[Voting]

I can see that the voting has finished. I can see the results. We had 61,040,570 votes cast in favor. There have been no votes cast against and nobody abstained. Thank you so much for the votes cast. So resolution #1 is hereby adopted Agnieszka, my congratulations. And now if you could please share the remaining part of the general meeting.

Yes. All right. Thank you for electing me. And let me start with asking for the attendance sheet. All right. Thanks so much. The sheet is signed now. And we are able to move to Item 3 on our agenda, that is determining that the general meeting has been validly convened and it's empowered to undertake binding resolutions.

Under this item, let me indicate that at today's general meeting according to Article 402.2 of the Commercial Companies Code has been convened as required on the 23rd, February 2026 in the required form involving reports to [ 2/226 and 3/226 ]. The first of these reports refer to formal convening of the general meeting and the second contained draft resolutions proposed by the Board.

On the very same day of the announcement, the content of the report has been published on the company's website and the draft resolutions referenced here apart from being published on the website, have also been provided to you on your tablets. As a result, unless there are any comments here, I will submit the resolutions in the content as presented in the documentation for voting, and I will not be reading their full content.

At this point, let me also state that today's general meeting is being taken minutes of by [indiscernible], our notary here in this room. In the meantime, I've also received a printout with the attendance of the shareholders reported. And in line with the information I've received, that today's general meeting has present or represented 61,040,570 shares and the same number of votes, constituting 61.09 of the share capital of the company.

Let me also inform that some shareholders participate remotely in this General meeting. Hence, that today's general meeting of CD Projekt S.A., has been convened appropriately and is capable and empowered to undertake binding resolutions.

Now we may move to item 4 on our today's agenda that is the adoption of a resolution concerning approval of the general meeting agenda. Under this item, the Board has proposed resolution #2 on the adoption of the general meeting agenda. The content is in your materials. And it's going to be an open ballot with 3/5 majority required to adopt this resolution under the Articles of Association. Does anyone have any questions to this resolution #2? There are none. So let us now cast the vote on resolution #2 concerning approval of the general meeting agenda. And please cast your votes now.

[Voting]

I can see that the vote has completed already. And in the open ballot, 61,040,570 votes -- valid votes have been cast. All of these were in favor, hence, the resolution has been adopted unanimously. Thank you so much.

And now we may move on to item 5 of our agenda, and this is resolution -- adoption of the resolution #3 regarding the determination of earnings conditions for years 2026-2029 and the Incentive Program B. The content of this resolution is in your materials. And this resolution is about determining the financial results for 2026-2029 for the Incentive Plan B for the total amount of PLN 5 billion. The justification is provided in the materials. This is going to be an open vote and the majority that is required is 3/5 of all the votes according to the [ statute ] of the company. Are there any questions or comments to the resolution #3? I cannot see any. I understand that there are no questions from the remote participants. Therefore, I call the vote on resolution #3 regarding the determination of the earning conditions for years 2026-2029 and the incentive program B to [indiscernible]. Please cast your votes.

[Voting]

Well, I can see that the vote has already been closed. The open vote on this resolution included 61,040,570 valid votes that were cast. In favor, 57,558,558 votes, against 3,482,012 votes. There were no abstaining votes. And therefore, I here assert that the resolution has been passed. Thank you for your votes. And we have exhausted the agenda for this Extraordinary General Shareholders Meeting. Thank you for your participation and I announce the closure of the General Shareholders Meeting. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to CD Projekt Third Quarter 2025 Earnings Conference Call.

I will now pass the line to Michal Nowakowski, Joint CEO of CD Projekt.

Okay. Thank you, and good afternoon, everyone. My name is Michal Nowakowski, and I'll be your host during today's conference dedicated to the CD Projekt Group's financial results for the third quarter of 2025. I will be co-presenting with Piotr Nielubowicz. And after the presentation, we will traditionally invite you to participate in a Q&A session where we'll be joined by Karolina Gnas, our VP and Head of Investor Relations.

So starting off, I'm thrilled to announce that just on the eve of its fifth anniversary, Cyberpunk 2077 has just surpassed the 35 million copies sold milestone. This is not only a remarkable achievement for us, but also a powerful testament to the strength of the franchise and the effectiveness of our business strategy. We deliver high-quality story-driven games that keep selling, supported by content updates that ensure our games continue to evolve and engage players for years.

Staying on the Cyberpunk sales topic, let me briefly walk you through the game's performance on the PlayStation platform. As you probably noticed, in July, we introduced Cyberpunk 2077 to the PlayStation Plus Extra and Premium catalog. For the first time ever, we offered this game as part of a subscription service. Based on the data from the first 4 months of the games availability to subscribers, we see that the interest in the Cyberpunk franchise on PlayStation remains strong, and that game continues to reach new groups of players on that platform.

And just for the sake of clarity, the 35 million number that I mentioned on the previous slide included only direct purchases of the game. And any time we're going to mention a number like that, that's also going to be only about the sales, not accounting for any downloads from the subscription catalog.

Coming back to the subject, beyond the direct positive financial impact that the PlayStation licensing deal had on our Q3 results, we are particularly glad to see that many of these new players choose to buy the Phantom Liberty expansion and expand their adventures in the Night City.

The upcoming Cyberpunk anniversary coincides with another important date for the company and the IP. 2 years ago, we launched our Boston Hub and started building the team responsible for the next Cyberpunk title there. We'd like to take this opportunity to give you a quick update and shed some light on our plans for the development of the Cyberpunk 2 team, especially in the context of the Boston hub.

Initially, this began with transferring the core team, which consisted of studio veterans previously involved in the development of Cyberpunk 2077 and the Phantom Liberty expansion to spearhead the project. This group has significantly expanded since then, joined by skilled industry professionals with a proven track record of well-known AAA projects such as GTA, God of War, World of Warcraft or [indiscernible], and those are only some of the many examples.

Currently, the Boston-based part of Cyberpunk 2 team consists of over 80 members with more than 90% of them holding senior level positions. Having accomplished our goal of building a strong leadership team at its core, we are now shifting to hiring more mid-entry-level roles to carry on with preproduction works. We plan to expand the Boston-based Cyberpunk team as the project progresses and double it within the next 2 years. We also intend to shift the split between the Boston-based team and the teams in Vancouver and Warsaw to around 50% in the coming years as the Canadian and Polish team will be steadily growing in size as well.

Establishing the Boston-based Cyberpunk 2 team enabled us to carry on with the development of 2 separate big AAA games at the same time. Despite introducing some geographical and operational complexity, it brought in a wealth of multilayered experience, skills and backgrounds. We strongly believe that this investment will pay off in the future, bringing the next Cyberpunk experience to a new level.

Getting back to the topic of current recruitment, let me briefly walk you through the final slide of my part of the presentation, which discusses recent changes in the size of our project teams. Over this year, our recruitment efforts have shifted into higher gear driven by the needs of our expanding projects. This trend was maintained over the past 3 months with over 50 talented developers joining the studio and its teams. The majority of new hires are part of the Cyberpunk 2 team as the project continues its preproduction phase works.

And with that, I'll be ending. That will be all for me. And now it's time for Piotr and the financial part. So Piotr, feel free to take it.

Thank you, Michal, and good evening, everyone. Let's start with our consolidated profit and loss account on Slide 7. Our group sales revenue for the third quarter of 2025 reached nearly PLN 350 million. That's 53% more than in the corresponding period last year. Naturally, most of this revenue came from sales of our own products, especially the Cyberpunk family. It's worth mentioning that regular sales of Cyberpunk 2077 and Phantom Liberty on PC, Xbox and PlayStation generated higher revenues in this year's Q3 than the year before.

On top of that, we booked income attributable to introducing the base edition of Cyberpunk to PlayStation Plus Extra and Premium subscription services as well as to sales of the ultimate edition of the game for the Nintendo Switch 2 and Mac platforms. Talking about the Cyberpunk product family, all of the above resulted in a more than twofold increase in revenues compared to Q3 2024.

At the same time, revenues from sales of the Witcher games were lower compared to last year when in Q3, we had booked revenue from the Witcher 3 being also made available on PlayStation Plus Extra and Premium. Our sales of goods and materials reached PLN 58 million and recorded a 24% growth versus last year, while GOG's contribution to this line item was stable, despite a strengthening of the zloty versus the U.S. dollar and euro. In the case of the CD PROJEKT RED segment, the figure reached over PLN 14 million, which is 10x more than in the reference period. This was driven mainly by our sales of physical cartridges of Cyberpunk Ultimate Edition for Nintendo Switch 2.

Our cost of products and services sold was lower in Q3 2025 compared to Q3 of the previous year, mainly for 2 reasons. First, due to applying a declining amortization model; and second, because we had extended the amortization scheme based on an estimation of the useful lives of our assets, which happened at the end of 2024. The cost of goods for resale and materials sold grew in line with the discussed increase of sales in this category.

Moving on to operating costs. In Q3 2025, they were slightly higher versus the previous year, especially with regards to selling expenses, due to our promotional activity related to the Cyberpunk product family, including the Nintendo Switch to Edition as well as some expenses on our game's updates. Administrative costs remained flat year-over-year.

And finally, our net profit for the third quarter of 2025 reached PLN 193 million. This figure is 2.5x higher than the year before. The numbers speak for themselves. We are also very proud of our results in the 9 consecutive months of 2020 -- for the 9 consecutive months of 2025. Our revenues grew 21% and net profit increased by 40%, reaching nearly PLN 350 million. Most of that was delivered by the CD PROJEKT RED segment. Please take a look at the segment's results in a broader perspective on the next slide.

This year, we generated even higher sales and more profits than 2 years ago, which is when Phantom Liberty was launched. In recent years, we also recorded a steady increase of the net profitability factor, which for the first 9 months of this year reached 53% in the CD PROJEKT RED segment. As shown on the P&L slide, in the third quarter alone, this factor stood at an impressive 63%.

Now let's take a look at the next slide, #10, our consolidated balance sheet. On the asset side, first, the usual expenditures on development projects. The balance here increased by PLN 122 million, driven by PLN 137 million in development expenses, less PLN 15 million from amortization of previously launched games. During the past quarter, the total balance of this line item exceeded PLN 1 billion. Out of this total number, PLN 173 million corresponds to our finished products, mainly Phantom Liberty, Cyberpunk and its next-gen Switch 2 and Apple versions.

Works in progress account for PLN 847 million in development expenditures. Here, the main share comes from investing in the development of the Witcher 4 Series and Cyberpunk 2. We also have a few other capitalized gaming and nongaming projects, which differ in terms of scale and stage of development.

We also continue investing in our local physical assets as evidenced by the nearly PLN 19 million increase in the property, plant and equipment line item. This was mainly driven by the investments at our Warsaw campus, final touches to the construction and fit-out of our new office building, which since June houses the Witcher 4 team as well as recently initiated work on our new performance capture studio eclipse with 2 stages, which once finished, will help us work faster and more efficiently on 2 projects at the same time.

The total value of cash deposits and bonds included in the 3 asset items marked with an asterisk is summed up under the table and amounts to PLN 1.408 billion as of the end of September. As usual, I will have a separate slide to provide more insight on our main cash flow drivers during that period.

Moving forward to equity and liabilities, Slide 11. The most noticeable change here involves the increase in our equity driven by the strong financial performance of the recent Q3. In addition, we reported a PLN 99.9 million decrease in liabilities due to the dividend payout, which took place in July.

Now please move on to the next slide, #12, to the CD PROJEKT RED's expenditures on research works, development and cost of product maintenance presented here on a quarterly basis over the past 7 quarters. We continue to increase investments in our projects, both public and unannounced, developed either internally or outsourced. The majority of what we present here in blue relates to capitalized projects, which reflects their stage of advancement as well as our confidence in their future economic potential.

And finally, my favorite, our engagement -- our aggregated cash flow drivers on Slide 13. The PLN 193 million book net profit was supported by PLN 32 million in amortization, depreciation and noncash costs of our share-based incentive programs. At the same time, PLN 40 million was expensed on the acquisition of tangible and intangible assets. The overall change in receivables, liabilities, provisions and deferrals boosted our cash flows by PLN 31 million. Putting dividends, share buyback and investments into currently developed products aside, our ongoing business generated a healthy PLN 221 million in positive cash flows during the third quarter of 2025.

During the same time, most of our team was engaged in work on new projects, hence, the nearly PLN 180 million outflow associated with development projects. And at the beginning of July, we shared with our shareholders a nearly PLN 100 million dividend, which was later followed by a PLN 22 million share buyback.

All in all, after all the reported investments and financial activity related to dividend and share buyback, our financial reserves kept in cash, bank deposits and bonds decreased by only PLN 19 million, 1% over the reporting period and stood at PLN 1.4 billion at the end of September.

Moving on. As the past quarter was a significant step in terms of our bottom line, I would like to show you where we currently stand in terms of achieving the goals of our share-based incentive program.

Please move to Slide 14. The earnings condition for 2023 to 2026 was set at PLN 2 billion in cumulative net profit. After 11 out of 16 quarters, PLN 700 million still remains to be earned to reach this target, although it's a very ambitious goal, we believe that if things go according to our plan, we have a fair chance of reaching it. Given our current progress, there is a chance that new content hinted upon in recent calls and reports may see release in the coming year, having an impact on our results and increasing the likelihood of achieving the earnings condition for the first stage of the incentive program.

That's all from me. We can now move on to the Q&A session. Thank you.

[Operator Instructions] We have our first question that comes from Nick Dempsey from Barclays.

Yes. I've got 2 questions, please. So in terms of the 2 factors that are helping you this year, which are not just pure unit sales, we've got the PlayStation Plus benefit and the Switch 2 benefit. In terms of the PlayStation Plus benefit, can I assume that, that benefit has all happened in Q3 in a one-off payment? Or should I assume that there's more to come in terms of that benefit? And then for Switch 2, could we assume even more in the next quarter because Switch 2 is expected to be a big holiday season seller? So that's the first question.

And then in terms of Piotr's favorite slide, the expenditure on development projects of 118, I think we had in Q1, 100 and then in Q2, 142 and now we've got 118. Can you just kind of talk about the lumpiness in there because I wasn't really expecting it to go down as it's basically people and they're going up.

Okay. So starting from the first 2, they are easier than the third one. Yes, this Q3, we recorded all of the revenue related to our agreement with Sony on including Cyberpunk in the PlayStation Plus system. You mentioned it's one-off. It's one-off. To a certain degree, it is a one-off. But at the same time, I would like to underline that it was an intentional business decision made on us, decision directly related to the core of the business we run. So it wasn't a lottery win. It was conscious life cycle management.

And to make it even more not a one-off type of revenue, I would like to underline that a year ago, exactly Q3 2024, we also recorded revenues related to becoming a partner of PlayStation Plus. But back then, it was done based on the Witcher -- Witcher 3 game. So such revenues happen in our business. And answering directly the question, we recorded both of them 100% either now in Q3 '25 or back then with Witcher 3 in Q3 '24.

The expenditures on development projects, 111, this is cash flow-wise. And this may differ from period-to-period versus what we record book-wise. And basically, book-wise, our investment into development of projects was presented on the nicely growing table with the blue color and quarter-to-quarter, we invest more into future projects. And 118 was part of the cash flow presentation and related directly the sales, the cash flows attributed to the development, and they may be somehow desynchronized with the bookings we do. But in general, we develop and spend more and more quarter-by-quarter.

And there was also the Switch 2 mentioned, okay. And you ask as far as I remember, can we assume even more sales this quarter, the fourth quarter than what we recorded in the first quarter. So we never guide future projects, future period sales. But what I can say is that we feel to be well positioned with Cyberpunk on the Switch 2 platform. It's one-of-a-kind offering we have for gamers, which is nicely, strongly growing. Also, the guidance from Nintendo recently increased the volumes of the console they expect to sell, and this puts us in a nice position to expect longevity of the title on this platform. And Q4, usually, as we all know, is seasonally an important period of the year.

[Operator Instructions] We have some text questions. So maybe I will pass the line to the company to read them and answer them.

So I think I got a first question from [ Christof Koch ] from [ Erste ]. The question is, does the company plan to conduct any marketing activities related to new projects later this year?

So we are typically not commenting on marketing activities or lack of them -- ahead of them because they're traditionally is supposed to be a surprise. But if you're alluding or asking about our presence at the TGA, The Game Awards, well, we're not bringing any new content to TGA this year. Let me say it straight. But we will be present there as part of the show because we're very happy. We're very proud to be nominated with Witcher 4 as the most anticipated game.

And I'd like to thank from this space to everyone who has already voted for us. That means a lot to us. Thanks, everybody. But we'll be there to watch the show and celebrate this event with the rest of the peers from the industry.

And I think the second question I can take as well. That's from [indiscernible] from [indiscernible]. And the question is, is the Cyberpunk 2 team nearing somehow the end of preproduction work? Or is that still a long way off?

Well, we're happy with the progress Cyberpunk 2 team has made so far, but it's for sure, too early to talk about entering any next stage or phase of this project. We'll, for sure, make a proper update and statement when that time comes.

So I will take the third one from Nicolas Langlet, BNP Paribas. Are you able to quantify the contribution from licensing deal with PlayStation for Cyberpunk 2077 in the third quarter '25?

Well, I'm sorry, but we cannot share any details regarding the payment, the remuneration. However, as I said, it has had a visible impact on our top line in the third quarter we just published. But what I would like once again to underline that it was not the only driver for the growth of revenues. We also enjoyed higher sales of Cyberpunk on the old platforms and also the new revenue driver came from Nintendo Switch 2 version.

And I will read the next question from [ Christof Koch ] from [ Erste ]. After adding Cyberpunk to the PlayStation Plus subscription, has the company seen a decline in Cyberpunk sales on PlayStation 5?

I'll take this one. So there is always a hit to current sales of the game when you launch on a subscription basis. We launched in PS Plus the base game, so without the expansion. However, what is important to stress what we take into account in our planning is we do want to generate a surplus from what the game would normally do within a certain given moment of time, and we do believe we did that with this particular entry into the subscription. And also, we have created an opportunity to upsell additional copies for Phantom -- of Phantom Liberty of the expansion within that time frame. So this is beneficial in our opinion, to the bottom line for the company and the long-term performance of CP 2077 as well.

Okay. So I will take the next one from [ Christof Koch, Erste ] again. The question is approximately how many people at full CRE are working on the new unannounced project? And when did development on this project begin?

Over 100 people right now. And regarding time line, we do not have any comment. So thank you. And...

And I'll get the next one. It's coming from Nicolas Langlet from BNP Paribas. And the question is, can you share more detail about where you are in the Witcher 4 development process? And what are the key technical design risks that could shift the release window.

So as we have already stated, I mean, the Witcher 4 is in the full-scale production phase. And we're not fully disclosing any details regarding the target release dates. So there is no, I'd say, point in time I could refer to answering such questions. I mean the only thing we're commenting is we're not launching in '26. And we're also not really typically getting into any, I don't know, specifics when it comes to technical or design. I mean there's nothing out of ordinary, I'd say, in that area happening with the Witcher 4. So I mean, it's just full-scale production going at its pace for our internal plans. And I think that's as much as we can...

Okay. We have another voice question that comes from Piotr Poniatowski from mBanku maklerskie.

A couple of questions. How many unannounced projects are being capitalized? How many of them are gaming projects? Do these unannounced projects include board games or any trading card games, let's say? Would you consider Whiter IP-based board game as a gaming project? So that's, let's say, a pack of questions.

Another thing, what is going on with Sirius and Hadar projects? And as a follow-up to the full theory question, how many people are working at full theory on Witcher 1 remake? That would be all.

I'll try to tackle some of them. I think we're not disclosing details, correct me if I'm wrong, of how many projects are gaming or nongaming, et cetera. So I won't be able to help here. I can comment on the card game, Cyberpunk card game. I saw there was a lot of, I think, confusion around that one. So let me state it clearly. This is a physical collectible collectors card game, TCG. It's not a video game project. What was the remaining part of the question? There was quite a few things that were in there.

The question was whether that project is among the already mentioned unannounced projects?

No, we are not developing it ourselves. We are not capitalizing expenditures on that. And we didn't mention either the board games nor the Gwent collectible card game as the unannounced project from us.

As for the Hadar and Sirius projects, they're in their respective stages of -- for Sirius development and Hadar still IP preproduction, if you want to call it that way.

In terms of the full theory, I think we stated in the past that majority of the team is currently involved with the other projects and also support of the Witcher 4. So there is some limited team working on the Witcher 1, but it's -- since this is very much tied with the Witcher 4 development, this is also why we have made this move. I think we explained that in the past. That's why on the Witcher 1 per se, it's a smaller group of people directly at this moment in time.

Okay. So I will pass the line for -- back for the text questions that have come in.

Right. So the next question comes again from Nicolas Langlet, BNP Paribas. On the Scopely mobile partnership, anything to share about the progress of the discussion? Do you expect to book any upfront payment of the collaboration in 2026?

So what I can say for now is that this project is still in a very early phase. And regarding the potential booking of revenues on our side, unfortunately, I have nothing to guide in terms of our 2026 revenues.

And the next one is again from Nicolas Langlet from BNP Paribas. And the question is, any update you can make on the use of Unreal Engine 5 for the full production process of Witcher 4. Do you expect next games in the Witcher trilogy can be delivered on a shorter and more predictable cadence?

So we've been using the UE 5 for the Witcher 4 for almost 5 years right now, and we're very happy with what we've achieved. I think some of that you could have seen with your own eyes with the demo we have unraveled at the Unreal Fest a couple of months ago, and we're very happy with the results of that as well. We said that, but I'm always happy to say it again.

And we're happy with how the Engine is evolving for the Epic team's efforts and how we are learning how to make it work within a huge open world games as Witcher 4 is meant to be. And in a way, yes, I do believe that next games should be delivered in a shorter period of time because as we have stated before that the plan still is to launch the whole trilogy within a total of 6-year period. So that would mean, yes, we would plan to have shorter development time between Witcher 4 and 5, 5 and 6 and so on. So I think...

And next question comes from Konrad Krasuski, Bloomberg. Does government plan to control self-employed in companies to check whether such agreements should be rather typical employment contracts may impact way CD PROJEKT operates?

So in general, something you named the typical employment contract. This is our main type of contract. However, obviously, due to the nature of our business, we collaborate with various artists and freelancers using also different forms of allowed cooperation. Having said that, we still do not know the final legislation, which you're referring to as it's unknown, and we are continuously monitoring the work on the changes of the regulations.

The next question is also from Konrad Krasuski from Bloomberg. And the question is, how would you describe the current availability of IT talent to your studios given numerous reports that AI is making many people redundant. Can you imagine that you may reduce headcount, thanks to AI tools in the near future without any harm to work on your next project?

So I mean, we are not really hiring classic IT, but I understand it's supposed to touch on like the gaming industry talent. So I mean, the availability of the talent has been maybe a little bit more increased over the past 2 years. But I'm not sure I would actually necessarily ascribe it to AI, to be perfectly honest. I mean the studios, various studios were going through various turmoils. There were some project closures and so on. So yes, there's been many redundancies in the games industry. And we've all seen that. And it's been very dramatic in many cases.

But I -- literally kill me here, but I don't recall a single time where it would be directly ascribed to AI. At least I don't know about that.

And can we imagine that we reduce headcount, thanks to AI tools?

I don't imagine that. Our usage of AI is mainly in the productivity areas, to be honest, and that's where we see the largest benefits in that. And the benefits are real and they're meaningful, but it's not really a situation, and I'm unaware of such situation in the industry where AI can like sit down and make games for the people. I don't think this is really where it's heading. That's our take on that. That doesn't mean it's not going to be useful, but it's not going to be making Witcher 5 or 6 or anything like that.

All right. Since there seems to be no more questions on the line or in the text. I'd like to thank all of you for joining us today. And yes, somebody was saying something, no, I hope for a second. And if you have any follow-up questions, of course, please feel free to get in touch with our fantastic Investor Relations team. And I wish you all a pleasant evening, and goodbye and until the next investors call. Thank you.

Thank you very much. This concludes our call today. We are now closing all the lines. Thank you, and goodbye.