Download PDF

1. Company Snapshot

1.a. Company Description

CD Projekt S.A., together its subsidiaries, engages in the development, publishing, and digital distribution of videogames for personal computers and video game consoles worldwide.It operates through two segments, CD PROJEKT RED and GOG.com.The company's product portfolio comprises The Witcher; The Witcher 2: Assassins of Kings; The Witcher 3: Wild Hunt; Thronebreaker: The Witcher Tales; Gwent: The Witcher Card game; and Cyberpunk 2077.


It also distributes videogames through GOG.com distribution platform and the GOG GALAXY application.The company exports its products in Europe, North America, South America, Asia, Australia, and Africa.CD Projekt S.A. was incorporated in 2001 and is headquartered in Warsaw, Poland.

Show Full description

1.b. Last Insights on CDR

CD Projekt's recent performance was impacted by a 9% decline in half-year net profit, primarily due to increased selling costs and higher taxes. The company's revenue rose 4.3% year-over-year to 443 million zlotys, but its net profit fell to 155 million zlotys. This decline was a result of the company's increased expenses, which outweighed its revenue growth. Additionally, the current market environment, characterized by cautious Federal Reserve commentary and steady inflation rates, has led to declines in major US stock indexes.

1.c. Company Highlights

2. CD PROJEKT Delivers Stable Q1 2025 Earnings Amid Strong Franchise Performance

CD PROJEKT reported stable financial performance in Q1 2025, with sales revenue of PLN226 million, matching last year’s levels. The company’s EBIT rose 18% year-over-year to PLN96 million, driven by robust profitability in its core gaming business. Net profit reached PLN86 million, with a net margin of 38%, showcasing the company’s ability to maintain healthy profitability despite stable revenues. Earnings per share (EPS) came in at PLN0.85, surpassing analyst estimates of PLN0.765, reflecting stronger-than-expected operational execution. Michał Nowakowski, Joint CEO, highlighted the significance of the Nintendo Switch 2 launch for Cyberpunk 2077 Ultimate Edition, stating, "This marks a major step in expanding the game’s reach and accessibility."

Publication Date: May -29

📋 Highlights
  • Cyberpunk 2077 Ultimate Edition Launch: - Set to release on Nintendo Switch 2 on June 5, 2025, marking a major franchise milestone.
  • Phantom Liberty Sales: - Expansion surpassed 10 million copies sold since its September 2023 release.
  • Cyberpunk 2 Development: - Moved to preproduction, with a development timeline of 4-5 years from preproduction to release.
  • The Witcher Franchise Success: - The Witcher 3: Wild Hunt sold over 60 million copies, generating PLN2.4 billion in revenue over 10 years.
  • Financial Performance Q1 2025: - Stable sales revenue at PLN226 million, with EBIT reaching PLN96 million, up 18% year-over-year.

Operating Performance and Cost Management

The company’s operating costs remained stable, though their structure shifted due to lower research and development expenses and higher spending on ERP implementation and incentive programs. Sales of goods and materials on GOG.com grew 11%, contributing to revenue stability. Despite these changes, CD PROJEKT maintained disciplined cost management, which supported the improvement in EBIT margin. The balance sheet reflected increased development expenditures, primarily for The Witcher 4 and Cyberpunk 2, signaling the company’s commitment to its pipeline of upcoming titles.

Franchise Strength and Development Pipeline

The Witcher franchise continues to be a cornerstone of CD PROJEKT’s success, with The Witcher 3: Wild Hunt surpassing 60 million copies sold and generating PLN2.4 billion in revenue over the past decade. The Witcher 4 is now in production with a team of over 420 developers, while Cyberpunk 2 (formerly Project Orion) has moved into preproduction. Additionally, the Phantom Liberty expansion for Cyberpunk 2077 has sold over 10 million copies since its release in September 2023. These updates underscore the company’s ability to build and sustain successful franchises.

Valuation and Shareholder Returns

CD PROJEKT’s valuation reflects its growth prospects, with a P/E ratio of 46.7 and an EV/EBITDA of 41.38, indicating that investors are pricing in significant future growth. The company also announced a dividend of nearly PLN100 million (PLN1 per share) and a share buyback program for up to 89,601 shares, demonstrating its commitment to returning value to shareholders. With a dividend yield of 0.46% and a free cash flow yield of 1.19%, the company balances growth investments with shareholder returns.

3. NewsRoom

Card image cap

3 European Growth Companies Where Insiders Own At Least 10%

Dec -03

Source:

Card image cap

High Growth Tech Stocks With Promising Potential In Global Markets

Dec -03

Source:

Card image cap

Discover 3 Global Growth Companies With Up To 27% Insider Ownership

Dec -03

Source:

Card image cap

European Growth Companies With High Insider Ownership

Dec -03

Source:

Card image cap

European Growth Stocks With High Insider Stakes

Dec -02

Source:

Card image cap

Exploring Wuhan Guide Infrared and Two High Growth Tech Stocks

Dec -02

Source:

Card image cap

3 Global Growth Companies With High Insider Ownership And Up To 47% Revenue Growth

Dec -02

Source:

Card image cap

European Insider-Owned Growth Companies To Watch In December 2025

Dec -02

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

CD PROJEKT RED

Expected Growth: 6.0%

CD PROJEKT RED's 6.0% growth is driven by increasing demand for immersive gaming experiences, successful franchise expansion (Cyberpunk 2077, The Witcher), strategic partnerships, and continuous innovation in game development. Additionally, the growing esports industry and rising popularity of digital distribution platforms (GOG, Steam) contribute to the segment's growth.

GOG.COM

Expected Growth: 6.0%

GOG.COM's 6.0% growth driven by increasing demand for PC gaming, expansion of CD Projekt S.A.'s game portfolio, and strategic partnerships. The platform's focus on curated, DRM-free games and strong community engagement also contribute to its growth. Additionally, the rise of digital game distribution and the shift towards online gaming experiences further support GOG.COM's upward trend.

7. Detailed Products

The Witcher

An action role-playing game series based on the book series by Polish author Andrzej Sapkowski.

Cyberpunk 2077

A role-playing game set in a dystopian futuristic world, based on the Cyberpunk franchise.

Gwent

A digital collectible card game set in the world of The Witcher.

CD Projekt Red Game Development Services

A game development service provided by CD Projekt Red, offering co-development, outsourcing, and consulting services.

8. CD Projekt S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for CD Projekt S.A. is medium, as there are some alternatives to their games, but they have a strong brand and loyal customer base.

Bargaining Power Of Customers

The bargaining power of customers for CD Projekt S.A. is low, as they have a strong brand and loyal customer base, and customers are willing to pay premium prices for their games.

Bargaining Power Of Suppliers

The bargaining power of suppliers for CD Projekt S.A. is low, as they have a strong negotiating position and can dictate terms to their suppliers.

Threat Of New Entrants

The threat of new entrants for CD Projekt S.A. is high, as the gaming industry is highly competitive and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry for CD Projekt S.A. is high, as they operate in a highly competitive industry with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.83%
Debt Cost 4.82%
Equity Weight 99.17%
Equity Cost 5.42%
WACC 5.42%
Leverage 0.83%

11. Quality Control: CD Projekt S.A. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CD Projekt

A-Score: 5.1/10

Value: 0.0

Growth: 7.6

Quality: 8.4

Yield: 1.2

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Camtek

A-Score: 4.6/10

Value: 2.2

Growth: 8.8

Quality: 8.3

Yield: 0.0

Momentum: 7.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Playtika

A-Score: 4.5/10

Value: 8.4

Growth: 3.7

Quality: 5.2

Yield: 8.1

Momentum: 0.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Embracer Group

A-Score: 4.3/10

Value: 7.5

Growth: 9.9

Quality: 7.9

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
Keywords Studios

A-Score: 3.8/10

Value: 1.5

Growth: 7.9

Quality: 4.8

Yield: 3.1

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
Ubisoft

A-Score: 3.4/10

Value: 7.8

Growth: 3.1

Quality: 2.7

Yield: 0.0

Momentum: 5.5

Volatility: 1.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

245.6$

Current Price

245.6$

Potential

-0.00%

Expected Cash-Flows