Shares in CD Projekt (CDR.PL) are recording another consecutive day of decline today, despite excellent financial results for the second quarter of 2025. Remember that based on the results published by the company last Thursday, the company exceeded market expectations both in terms of revenue (PLN 216.7 million compared to the expected PLN 205.5 million) and operating profit (PLN 72.4 million, up 23% y/y).
The company's most important achievements in the second quarter of 2025:
- On June 3, during State of Unreal 2025, CD PROJEKT RED and Epic Games presented a tech demo of The Witcher 4.
- On June 5, Cyberpunk 2077: Ultimate Edition debuted on the Nintendo Switch 2 console on the day of its global release, and on July 17, the game arrived on Mac devices with Apple chips.
- At the beginning of the second quarter, the team responsible for the development of Cyberpunk 2 entered the pre-production stage with the project.
- In the first half of the year, CD PROJEKT Group's revenues reached PLN 443 million, and consolidated net profit amounted to PLN 155 million.
CD Projekt can also boast several milestones, including exceeding 60 million copies sold of The Witcher 3 and 10 million copies of the Cyberpunk expansion. The company has also announced a collaboration on a new series based on the universe of the latter game.
However, markets remain cautious. Pressure on the share price is exerted by the lack of new information from the management board regarding future projects, business plans, or specific release dates, as well as the gloomy mood on the Warsaw Stock Exchange, where shares are experiencing a sharp decline. The financial data itself remains far too low to support the company's high valuations. High expectations for the release of The Witcher 4 remain the driving force behind CD Projekt's valuation. From this perspective, we have had a very important quarter for the company. In June, CD Projekt presented a tech demo of its game, which showed the team's enormous ambitions, although it is worth remembering that the game will undergo a lot of evolution and changes between the tech demo and the final version.
The company is currently in the process of increasing its capital expenditure in relation to the production of new games in The Witcher and Cyberpunk series. At the same time, positive cash flows are generated mainly from the sale of existing games. The company is successfully taking advantage of digital game distribution in the face of high-profile discounts offered by the studio on platforms such as Steam and Epic Games. Source: CD Projekt
Technical chart:
The current correction has technically stopped at the 100-session exponential moving average (EMA100), which has been a key support for the stock since the fall of 2024. Even despite solid fundamentals, investors are clearly discounting the company's future potential, which means that the reported results, although strong, are not enough to trigger a sustained increase in the share price in the current market conditions. On the other hand, however, declines below the aforementioned EMA100 zone have been quickly negated recently, but also repeatedly in the past. At this point, it appears that the long-term upward trend is still intact.
Source: xStation
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