Remedy Entertainment Q3 2025 Business Review

Key insights

7 takeaways

01
Remedy Entertainment reported a 32% year-over-year revenue decline to €12.2 million and an 89% drop in EBITDA to €0.7 million for Q3 2025.See it on page 7
02
The company recorded a €16.4 million EBIT loss, driven primarily by a €14.9 million non-cash impairment charge related to the development costs of the multiplayer title FBC: Firebreak.See it on page 19
03
Management has downgraded the 2025 outlook, now projecting negative operating profit (EBIT) that will fall below 2024 levels.See it on page 26
04
Despite immediate losses, the company maintains its long-term 2027 targets of doubling 2024 revenue and achieving a 30% EBITDA margin.See it on page 15
05
Operating cash flow increased by 41% to €11.3 million, supported by the timing of sales payments.See it on page 22
06
Markus Mäki has been appointed interim CEO following the departure of Tero Virtala as part of a broader leadership transition.See it on page 3
07
Development resources are currently prioritized on the Max Payne 1&2 remake, Control 2, and ongoing support for FBC: Firebreak.See it on page 13

Summary

The Remedy Entertainment Q3 2025 Business Review outlines a challenging financial period characterized by a strategic pivot following the underwhelming commercial performance of its recent multiplayer title, FBC: Firebreak. The primary thesis centers on the necessity for the company to accelerate decision-making and improve project management to return to a profitable trajectory. While the company maintains its long-term 2027 financial targets—including doubling 2024 revenue and achieving a 30% EBITDA margin—the immediate outlook for 2025 has been downgraded, with expectations of negative operating profit (EBIT) falling below the previous year's levels.

Financial performance for the third quarter of 2025 reflects significant pressure, with revenue declining 32% year-over-year to €12.2 million and EBITDA dropping 89% to €0.7 million. A critical factor in these results was a €14.9 million non-cash impairment charge related to capitalized development costs for FBC: Firebreak, which contributed to an EBIT loss of €16.4 million. Despite these losses, the company reported a 41% increase in operating cash flow to €11.3 million, bolstered by the timing of sales payments.

The company’s portfolio strategy remains focused on its core franchises. Alan Wake 2 continues to generate royalties and maintain long-term digital sales, while Control is seeing sustained interest following the acquisition of full publishing rights. Development efforts are currently concentrated on Control 2, the Max Payne 1&2 remake, and ongoing support for FBC: Firebreak. Leadership changes were also announced, with Markus Mäki stepping in as interim CEO following the departure of Tero Virtala, alongside a transition in the chairmanship of the Board. The company intends to leverage the experience gained from self-publishing and live-service operations to mitigate risk in future project launches.