Report of the Board of Directors and Financial Statements 2025: Remedy Entertainment

Key insights

6 takeaways

01
Remedy Entertainment reported a net loss of EUR 13.03 million for 2025, primarily driven by a EUR 14.9 million non-cash impairment charge related to the underperformance of the self-published title FBC: Firebreak.See it on page 4
02
Annual revenue increased by 17.5% to EUR 59.5 million, supported by strong game sales and royalty income despite the bottom-line losses.See it on page 4
03
The company maintains a stable financial foundation with an equity ratio of 67.4% and total equity of EUR 56.59 million.See it on page 53
04
Management has suspended dividend payments for 2025 to preserve capital as the company navigates the financial risks associated with its transition to a self-publishing model.See it on page 41
05
Remedy is targeting a 30% EBITDA margin by 2027, with a strategic focus on expanding its core Control and Alan Wake intellectual properties.See it on page 3
06
As of the end of 2025, the company holds a cash balance of EUR 9.6 million and maintains a debt structure primarily composed of convertible bonds.See it on page 51

Summary

Remedy Entertainment’s 2025 fiscal performance reflects a strategic transition toward self-publishing, characterized by a deliberate increase in financial risk in exchange for long-term control over intellectual property. While the company achieved a 17.5% revenue increase to EUR 59.5 million, driven by robust game sales and royalties, the bottom line was heavily impacted by a EUR 14.9 million non-cash impairment charge linked to the underperformance of the self-published title FBC: Firebreak. This write-down, combined with elevated development costs, resulted in a net loss of EUR 13.03 million for the year, a significant decline from the previous year’s performance.

Despite these fiscal pressures, the company maintains a solid foundation with an equity ratio of 67.4% and total equity of EUR 56.59 million. Management remains committed to its long-term objective of achieving a 30% EBITDA margin by 2027, focusing on the expansion of its core Control and Alan Wake franchises. To preserve capital, the Board of Directors has proposed no dividend payments for 2025. The company’s liquidity position, while reduced from the prior year, remains supported by a cash balance of EUR 9.6 million and a stable debt structure, primarily consisting of convertible bonds.

Operational oversight remains centered on rigorous accounting for capitalized development costs and revenue recognition, which are critical given the company's shift toward self-publishing. Independent auditors have confirmed that the financial statements provide a fair view of the company’s position, noting no material misstatements. Moving forward, Remedy continues to utilize share-based incentive programs to retain key talent, signaling a continued focus on long-term development capabilities despite the immediate challenges posed by project-specific impairments and the inherent volatility of the self-publishing model.