Warsaw-based CD Projekt, known for hit titles like The Witcher series and Cyberpunk 2077, reported strong financial results for the third quarter of 2025, ending September 30.
The company beat market expectations with higher revenue and profits, driven mainly by ongoing sales of Cyberpunk 2077 and its expansion.
This performance highlights the studio's ability to sustain income from existing games while investing in future releases.
Financial Results Show Significant Growth
In Q3 2025, CD Projekt achieved sales revenue of 349 million PLN, a 53% increase from 227 million PLN in the same period last year.
Net profit rose 148% to 193 million PLN. For the first nine months of 2025, revenue reached 792 million PLN, up 21% year-over-year, with net profit at 348 million PLN, a 40% gain.
Key Revenue Drivers
Cyberpunk 2077 and its Phantom Liberty expansion led the charge, contributing about 253 million PLN in Q3, more than double the previous year's figure.
This surge came from inclusions in services like PS Plus Extra/Premium, launches on Nintendo Switch 2 and Mac, and the Ultimate Edition.
In contrast, The Witcher series saw a 52% drop in quarterly revenue to 26 million PLN, though it remains a steady performer overall.
Balance Sheet Strength
The company ended the quarter with 1.408 billion PLN in cash reserves, supporting heavy investments in development.
Operating cash flow from ongoing operations stood at 221 million PLN, despite outflows for dividends, share buybacks, and 118 million PLN in development spending.
Game Sales Milestones and Back-Catalog Focus
Cyberpunk 2077 has now sold over 35 million units, outpacing The Witcher 3 in similar post-launch periods.
(Credit: CD PROJEKT)
With no major new releases in 2025, the studio relied on lifecycle management of existing titles, including platform expansions and promotions, to drive results.
Projects on Development
(Credit: CD PROJEKT)
CD Projekt RED, the core studio, employs 851 developers as of October 2025, up 50 from July.
Key projects include: The Witcher 4, Cyberpunk 2, Project Sirius and Hadar,
Major Titles in Progress
The Witcher 4, codenamed Polaris, involves 447 developers and uses Unreal Engine 5 to kick off a new trilogy with shorter release cycles.
(Credit: CD PROJEKT)
Cyberpunk 2, or Orion, has 135 developers and plans to scale up, featuring a new city alongside Night City, with full production expected in 2026-2027.
Other efforts include Sirius with 56 developers and Hadar with 29, plus unannounced projects set for 2026 reveals.
External and Additional Ventures
External studio Fool's Theory adds over 100 developers to a CD Projekt project.
The company also launched a physical trading card game, Witcher: Legacy, and uses AI tools for productivity, not content creation.
Market Response and Future Outlook
Following the November 26 release, CD Projekt's shares rose 6.58% in U.S. ADR trading to $17.00, with year-to-date gains of 47%.
Analysts maintain a "Hold" rating with a target price around 228 PLN.
Social media buzz focuses on sales milestones and upcoming titles, while the company eyes 2026 announcements to meet incentive goals.
Editor's Comments
CD Projekt's Q3 results underscore a successful turnaround from Cyberpunk 2077's troubled 2020 launch, now a franchise cornerstone with enduring appeal.
Drawing from the studio's history, this resilience echoes the long-term success of The Witcher 3, which continues to generate revenue a decade later.
Looking ahead, the parallel development of multiple high-profile titles positions the company well in a competitive industry, though risks like extended timelines and rising costs persist.
If execution matches past redemptions, expect Cyberpunk 2 and The Witcher 4 to redefine RPG standards by the end of the decade.
FAQs
What drove the 53% revenue growth in Q3 2025?
The surge was primarily fueled by Cyberpunk 2077 sales, boosted by its inclusion in PS Plus Extra/Premium, new platform launches on Nintendo Switch 2 and Mac, and the Ultimate Edition release.
How is AI integrated into CD Projekt's development process?
AI tools are used solely to enhance productivity in game development, not for generating content or creative elements.
Will CD Projekt reveal anything new at The Game Awards 2025?
No new materials or content will be shown at TGA 2025, though the team will attend and Witcher 4 has a nomination.
What is the progress on the incentive program for 2025?
The program has achieved 91% of its net profit targets year-to-date, positioning the company well to meet overall goals including a potential 2 billion PLN net profit.
What is the current sales milestone for Cyberpunk 2077?
Over 35 million units sold worldwide as of Q3 2025, surpassing The Witcher 3's sales in a comparable post-launch period.
When is The Witcher 4 expected to release?
No confirmed date yet; it kicks off a new trilogy with planned shorter release gaps aiming for about six years total, but it won't launch in 2026.
How is development progressing on Cyberpunk 2?
Currently, 135 developers are assigned, with plans to scale to over 300 by 2027 and enter full production between 2026 and 2027, featuring a new city alongside Night City.
What unannounced projects are planned for 2026?
Details remain undisclosed, but they exclude the Witcher 1 remake, mobile games, or board games, and are designed to help achieve incentive targets.
How did the stock market react to Q3 2025 earnings?
On November 26, shares rose 6.58% in U.S. ADR trading to $17.00, with year-to-date gains of 47%; post-market reactions on November 27 showed continued positive sentiment among investors.
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