Remedy Entertainment Q1 2025 Business Review

Key insights

7 takeaways

01
Remedy Entertainment achieved a financial turnaround in Q1 2025, reporting EUR 13.4 million in revenue—a 24.1% increase year-over-year—and an operating profit of EUR 1.3 million compared to a EUR 2.1 million loss in Q1 2024.See it on page 4
02
The company has acquired full rights to the Control franchise from 505 Games and is building internal self-publishing capabilities, currently supported by a dedicated team of 25 experts.See it on page 5
03
Remedy is set to launch FBC: Firebreak, a three-player cooperative shooter set in the Control universe, on June 17, 2025.See it on page 7
04
Management has set long-term strategic goals to double 2024 revenue by 2027 while achieving a sustained EBITDA margin of 30%.See it on page 12
05
Despite positive profit growth, the company reported a negative operating cash flow of EUR 6.6 million for the quarter, attributed to the timing of agreement-based payments.See it on page 19
06
Financial performance is currently underpinned by royalty income from Alan Wake 2 and development fees from the Max Payne 1&2 remake and Control 2.See it on page 14
07
The company anticipates growth in both revenue and operating profit for the full year 2025, though it warned that a weakening U.S. dollar and broader economic instability pose potential risks.See it on page 24

Summary

The Remedy Entertainment Q1 2025 Business Review outlines a period of financial growth and strategic transition as the company shifts toward a self-publishing model. During the first quarter of 2025, revenue increased by 24.1% to EUR 13.4 million, compared to EUR 10.8 million in the same period of the previous year. The company achieved an operating profit of EUR 1.3 million, marking a significant turnaround from the EUR 2.1 million loss reported in Q1 2024. This performance was driven primarily by steady royalty income from Alan Wake 2 and ongoing development fees from projects such as the Max Payne 1&2 remake and Control 2.

A central development in this period was the finalization of the acquisition of full rights to the Control franchise from 505 Games. The company is now prioritizing its self-publishing capabilities, supported by a dedicated team of 25 experts. This infrastructure is currently focused on the June 17, 2025, launch of FBC: Firebreak, a three-player cooperative first-person shooter set in the Control universe. The company maintains a positive outlook for the full year, projecting that both revenue and operating profit will increase compared to 2024.

Despite the positive financial trajectory, the company noted that operating cash flow was negative at EUR 6.6 million, attributed to the timing of agreement-based payments. Furthermore, management identified potential macroeconomic headwinds, specifically noting that a weakening U.S. dollar and broader economic instability could influence future game sales. Looking toward 2027, the company has established long-term strategic goals to double its 2024 revenue and achieve a sustained EBITDA margin of 30%.