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Ekaros

If I read their income statement from Q3 correctly it is comparatively not doing great.

01.01.2025 to 30.09.2025 net profit 910 thousand PLN I think.

01.01.2024 to 30.09.2024 net profit 32 thousand PLN.

With "from 1 January to 30 September 2025: 4.2365 PLN/EUR and from 1 January to 30 September 2024:4.3022 PLN/EUR."

It is not that much. So splitting it off probably make sense for the CD Projekt.

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https://www.cdprojekt.com/en/investors/result-center/q3-2025... [has a bunch of files at the bottom too, for more data]

> Consolidated net earnings during the reporting period stood at 193 million PLN – 2.5 times more than during the corresponding period of the previous year, which results in a net profitability of 55%.

Maybe I don't understand "profits above all" sufficiently well as some of my peers, but that seems Good Enough to me.

Overall CD Projekt is doing well, but cut associated to GOG.COM is paltry as shown above.

I'm not sure I understand your figures. What is "32 thousand PLN", surely their entire annual profit for all of 2024 was not literally 32K PLN (approx. 9K USD)? Is this measured in millions? And whatever they're measured in, surely 32K to 910K in the span of a year is considered excellent progress?

No it was actually just circa 9 thousand Euros from GOG.COM. And it seems there was period of having potential loss of million PLN as well in Q3 of 2024 I think. So it looks quite variable based on which products release.

See: https://www.cdprojekt.com/en/wp-content/uploads-en/2025/11/c...

Starting from page 28.

Maybe they are just heavily reinvesting?

I think reality is that being game retailer is harsh market if you are anyone else but Valve with Steam. Selling copies redeemed on Steam is workable, but seeing that pretty much all big publishers are back on Steam should tell a lot of state of the market. And GOG has bigger mind share than actual market share.

Still, making only 32k PLN ($9k) profit on 137M PLN ($38M) revenue seems like a really badly operated business.

Profit is not an appropriate measure of how well a business is operated. I'm sure they have been prioritizing growth because the whole point of the platform is to introduce competition to Steam. Keeping the margins low (or even negative) is smart when the primary goal is not to make profit but to insure the parent company against monopolistic behavior.

A counterpoint is Amazon's profit on revenue until 2017 or so.

Amazon was basically conducting a price war founded by AWS division. Unless GOG is trying to undercut Steam this is a bit apples and oranges.

Reinvested money isn't a cost, so the amount of reinvesting doesn't impact the profit number in their report.

In what country? Of course I do not operate business with milions of income, but investing in Poland is usually a cost. In example buying hardware or paying for servers is an invoice so it is cost of you doing business. Of course it depends on accounting and your taxing method. But yes, your profit in Poland is more or less money you got from clients minus money you paid to someone.

Investment/CAPEX goes to the Balance sheet, not P&L.

Cost of Sales is eating them alive.

They lose ~72% of every PLN/EUR/USD they bring in. Their financial statement is Really confusingly laid out. However, pg 36 has comparison. GOG is actually not THAT tiny of a segment (percentage-wise, absolute EUR / PLN numbers are still small). 49k PLN / 300k PLN for the CD PROJEKT Red and 350k total.

Compared to CD PROJEKT RED, insanely horrible cost of sales ratio.

July 1st, 2025 to Sept. 30th, 2025 (Numbers are in PLN, directly from document)

                 CD PROJEKT RED     GOG.COM
  Sales revenue         303,133      48,982
  Cost of sales          23,310      35,151

January 1st, 2025 to Sept. 30th, 2025 (Numbers are in PLN, directly from document)

                 CD PROJEKT RED     GOG.COM
  Sales revenue         658,575     143,285
  Cost of sales          61,307     103,075

PLN numbers can be verified (GOG quarterly is really on the order of 10,000 EUR) by looking at pages 30-31 with export sales summaries.

For comparison to the 72% ratio, their main video game creation business spends 7-8% on cost of sales.

From page 8 "Selling expenses represents costs of marketing activities relating to the GOG.COM platform and the work on the development and processing of sales executed through that platform."

From some of the rest of the document, it seems like "maybe" some of that is prepayments and costs related to providing the software.

Personal view, while it may be beneficial to not have to deal with GOG from an operational perspective, a significant percentage of sales are on the platform for their own software, and CD PROJEKT's title releases heavily influence sales figures on GOG, so it may end up limiting themselves from an otherwise beneficial distribution channel. Probably provides better negotiating position also if you're trying to barter with Nintendo, Sony, Microsoft, Valve, ect... However, if the partnership continues with the next owners, may not be an issue.

Does Cost of sales include game developers cut? because that 143/103 fits their 30-70 split.

Suspicion is you're correct, and is it's probably something like payments or money to developers who have games on the GOG platform. However, the definition in the document is kind of self referential.

"Cost of Sales" is 100% "Cost of goods for resale and materials sold"

and "The Cost of goods for resale and materials sold represents mainly the cost of sales of goods for resale and materials sold via the GOG.COM platform"

Kind of self referential. Everything else is in the CD PROJEKT RED group (Cyberpunk 2077 Ultimate Edition on Nintendo Switch 2 cartridges).

If your suspicion is correct then that would also imply that historical games are either almost always the same 70/30, or GOG is not really making that much on "historical" games (ie, most of the money is recent indie releases). And, kind of implied that they're not really selling that much. At maybe 10 EUR average, that's only like 1000 games a quarter.

Notably, its really difficult to find anything other than an online article that actually talks about the 70/30 split situation. Google links to Wikipedia for evidence that then links to a 2013 Engadget article. Nothing appears to actually spell out the financial terms on GOG's actual site.

If you happen to know where that type of legalese is on the GOG site, that would actually a helpful ref.

all the numbers are in thousand units. So more like 1M games a quarter.

Much more reasonable then. Like noted earlier. Really horrible financial layout. Teeny text (btw, thousands)

You mean they're not charging from some Luxembourg subsidiary any more?

No company with an ounce of brain and a good accountant reports profit in eastern Europe :)

Polska is in Central Europe tho

Haha, we all Slavs keep telling that to ourselves, don't we? :P

Eastern Europe starts at your home country's eastern border. E.g., if you're Russia, it's Japan and Alaska.

And Balkan on the southeastern.

To cite what might be deemed the lowest quality source possible: [1].

[1] https://en.wikipedia.org/wiki/Central_Europe

You'll find as many perspectives on what country belongs to East/West/North/South Europe as there are countries in Europe.

Is this taken from some LLM?

The first two numbers perhaps make sense, the 4,3022 looks like EUR/ PLN exghange rate..

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