Remedy (REMEDY) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was €12.2 million, down 32% year-over-year, mainly due to lower development fees and a significant one-time payment in Q3 2024 affecting the comparison.

• EBITDA for Q3 2025 was €0.7 million, down 89% from the prior year; operating profit (EBIT) was -€16.4 million, impacted by a €14.9 million non-cash impairment related to FBC: Firebreak.

• Positive operating cash flow was achieved, rising to €11.3 million in Q3, and cash reserves at quarter-end were €36.5 million.

• CEO and Chairman transitions occurred during and after the quarter, with Markus Mäki appointed interim CEO and Henri Österlund as Chairman.

• Remedy celebrated its 30th anniversary in August 2025.

Financial highlights

• Game sales and royalties rose, reaching €6.0 million, driven by FBC: Firebreak subscriptions, Alan Wake 2 royalties, and Control sales.

• Game sales and royalties accounted for 43% of total revenue year-to-date, up from 9% in the prior year.

• Operating expenses (excluding depreciation) remained stable year-over-year; external development costs fell 36.5%, while personnel expenses rose 11.7%.

• Cash and liquid investments at quarter-end were €36.5 million.

• Capital expenditures for January–September were €11.4 million, including investments in Control franchise publishing rights.

Outlook and guidance

• Revenue for full year 2025 is expected to increase from 2024, but operating profit (EBIT) will remain negative and below the previous year.

• Long-term targets include doubling 2024 revenue by 2027 and achieving a 30% EBITDA margin.

• Strong cash position and a robust pipeline of games support confidence in future funding needs.