CD Projekt's Licensing Shift and Development Surge

H1 2026: New IP licensing revenue line and a revamped pipeline mark a strategic evolution beyond game launches.

CDR.WA · Earnings Call · 2026-09-02

Strong Half-Year, Led by Licensing

CD Projekt came into its H1 2026 report with the wind at its back. Sales revenue reached PLN 435 million, up 23% year-over-year, and net profit jumped 37% to nearly PLN 0.2 billion. But the most striking development is the emergence of a wholly new revenue line. The company booked almost PLN 95 million in licensing revenue in the first half, a line that did not exist in any meaningful size before. As CFO Piotr Nielubowicz put it: “We booked almost PLN 95 million year, which included licensing revenues from some of the already announced and mentioned by Michal products and partnerships like Cyberpunk trading card game developed by WeirdCo, the collab with Wuthering Waves as well as some other initiatives that are still unannounced.” — Piotr Nielubowicz, Chief Financial Officer · 2026-09-02 This is a strategic pivot: CD Projekt, long known for its blockbuster game launches, is now monetizing its intellectual property continuously between releases.

The Pipeline: Remasters, Expansions, and New Sagas

The company is also executing on a dense release calendar. The Witcher 3: Wild Hunt Remastered arrives on September 29, followed by the Songs of the Past expansion in 2027, and then the next saga, Witcher 4, targeted for 2028. The development team has grown to 1,045 developers, with a notable ramp in capital expenditure. The CFO noted a "steady ramp-up in our production effort," and indeed, development expenditures grew by PLN 364 million to over PLN 1.5 billion. “We keep expanding the Cyberpunk ecosystem for selective license based partnerships that fit our world.” — Michal Nowakowski, Joint Chief Executive Officer · 2026-09-02 The company is clearly building a multi-title, multi-year revenue engine around its two core franchises. In the Q&A, CEO Michal Nowakowski gave an update on Witcher 4: “We're in a full production stage of the Witcher 4, which roughly means in very broad strokes that we know pretty well what kind of game we're making.” — Michal Nowakowski, Joint Chief Executive Officer · 2026-09-02

Incentive Program Warning

However, not all is up. The company disclosed that it will likely miss the earnings target for the second tranche of its incentive program (FY2024-27), which required PLN 3 billion in cumulative net profit. Piotr explained:

Consequently, 70% of the entitlements granted to participants under this tranche will most likely not vest.
Piotr Nielubowicz, Chief Financial Officer · 2026-09-02

This triggered a PLN 11 million reversal of non-cash costs, but management remains optimistic about hitting the later tranches (PLN 4B and 5B). The near-term goal for 2026 still looks achievable, with 86% of the PLN 2B target already earned and PLN 273M remaining.

Contrast with Prior Quarters

This is a sharp change from just a year ago, when the company was still primarily a game sales company. In the May 2025 call, the CFO talked about the impact of Nintendo Switch 2 sales on product revenue, and the CEO described the typical development cycle: “our journey from the preproduction to the final release takes four to five years on average” — Michał Nowakowski · 2025-05-28. Now, the revenue mix has shifted, and the company is taking a more diversified, licensing-heavy approach. The Remastered release and the licensing partnerships are not just about single titles but about sustaining global brand engagement. The company is also being more transparent about milestone misses, a sign of maturity. In summary, CD Projekt is evolving from a traditional game developer into a diversified entertainment company. The strong first half, driven by licensing, plus a heavy pipeline, positions it for sustained growth, though investors will need to digest the incentive program shortfall.