Subject: Management Board recommendation concerning allocation of the net profit obtained in 2025
Legal basis: Art. 17 of MAR – inside information
The Management Board of CD PROJEKT S.A. with its registered office in Warsaw (the “Company”) hereby announces that on 20 May 2026 it adopted a resolution concerning the adoption and submitting to the Supervisory Board and the Ordinary General Meeting of the motion regarding the allocation of the net profit for 2025.
The Management Board proposes to allocate the Company’s net profit earned by the Company in the financial year 2025 in the amount of PLN 635,208,677.41, reduced by the amount of PLN 25,739,304.00 constituting the negative value of the retained earnings/(accumulated losses) from previous years, disclosed in connection with the restatement of data for the comparative period, i.e.the amount of PLN 609,469,373.41 in such a way to transfer this entire amount to the reserve capital of the Company.
The Management Board’s recommendation concerning the allocation of the net profit of CD PROJEKT S.A. for 2025 in its entire amount to the reserve capital of the Company and, therefore non-payment of dividend, is driven by the implementation of the CD PROJEKT Group’s strategic objectives. CD PROJEKT RED studio is currently conducting intensive development work on multiple projects, which is in line with the ambitious growth plans of the Company and the Group and requires securing financial resources for future investment projects and publishing expenditures.Moreover, the Management Board’s intent is to maintain a financial reserve to ensure flexibility in the Company’s day-to-day operations and to enable the active pursuit of emerging business development opportunities. In view of the above, in the opinion of the Management Board, retaining the generated funds within the Company will, in the long term, contribute to an increase in its value and deliver benefits to shareholders.
At the same time the Management Board wants to emphasize that it upholds the assumptions of the Dividend Policy adopted in January 2025 (the “Policy”), pursuant to which the intention of the Management Board is to recommend to the General Meeting payments of dividends amounting to at least 25% of the Company’s net profit for a given financial year. In the event of a decision not to pay a dividend or to pay a lower amount, the Management Board intends to act in accordance with Sections II.4-6 of the Policy, i.e. to adequately increase the dividend pool to be distributed within the following five financial years (or to allocate it for the buyback of the Company’s own shares for redemption).
Upon issuance of an opinion on the recommendation by the Supervisory Board of the Company, the final decision regarding the allocation of profit rests with the Ordinary General Meeting of the Company.
Disclaimer: This English language translation has been prepared solely for the convenience of English speaking readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions or approximations may exist. In case of any differences between the Polish and the English versions, the Polish version shall prevail. CD PROJEKT, its representatives and employees decline all responsibility in this regard.