Remedy (REMEDY) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was EUR 13.4 million, up 24.1% year-over-year, driven by higher development fees and royalties, especially from Alan Wake 2, Control 2, and Max Payne 1 & 2 Remake.

• EBITDA improved to EUR 2.6 million from -1.2 million, and operating profit (EBIT) turned positive at EUR 1.3 million, up from -2.1 million.

• The company returned to profitability, began a new strategy phase as a self-publisher, and completed the acquisition of full publishing rights to the Control franchise.

• FBC: Firebreak, the first self-published title, is set to launch June 17, 2025, with strong early reception and a dedicated publishing team.

Financial highlights

• Revenue increased 24.1% year-over-year to EUR 13.4 million, with EBITDA margin at 19.3% and EBIT margin at 9.7%.

• Net income was EUR 0.6 million (4.4% of revenue), compared to a loss of EUR -2.0 million last year.

• Cash flow from operations was negative EUR 6.6 million, mainly due to timing of partner and agreement-based payments.

• Cash and cash equivalents at quarter-end were EUR 10.7 million, with an additional EUR 17.3 million in cash management investments.

• Capital expenditures were EUR 3.8 million, mainly for development costs and Control franchise rights.

Outlook and guidance

• Revenue and operating profit are expected to increase for the full year 2025, with positive EBIT guidance maintained.

• The company aims to double 2024 revenue and reach a 30% EBITDA margin by 2027.