Remedy (REMEDY) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 increased 49.3% year-over-year to EUR 50.7 million, with Q4 revenue up 13% to EUR 11.7 million, driven by development fees from Max Payne 1 & 2 Remake and Control 2.

• EBITDA turned positive at EUR 2.5 million for the year, while operating profit improved to EUR -4.3 million.

• Alan Wake 2 exceeded 2 million units sold, recouped development and marketing costs, and began generating royalties.

• Strategic milestones included reacquiring Control franchise rights, a partnership with Annapurna, and a EUR 15 million convertible loan from Tencent.

• Transition to self-publishing, with FBC: Firebreak in full production and set for 2025 release.

Financial highlights

• Q4 2024 revenue was EUR 11.7 million, up 13% year-over-year; development fees rose 34% to EUR 10.2 million.

• Full-year EBITDA reached EUR 2.5 million (5.0% margin), up from EUR -17.0 million (-50.0%) in 2023.

• Full-year operating profit was EUR -4.3 million (margin -8.4%), improved from EUR -28.6 million (-84.4%) in 2023.

• Cash at year-end was EUR 41.1 million, boosted by the Tencent loan.

• Cash flow from operations was EUR 12.3 million for the year, compared to EUR -16.0 million in 2023.

Outlook and guidance

• Revenue and operating profit (EBIT) are expected to increase in 2025, with EBIT turning positive.

• By 2027, the goal is to double 2024 revenue and reach a 30% EBITDA margin.

• FBC: Firebreak launch and Alan Wake 2 royalties are key contributors to positive EBIT in 2025.