This article first appeared on GuruFocus.

Revenue: EUR 12.2 million in Q3 2025, a decline of 32% compared to Q3 2024.

Development Fees: EUR 6.1 million, lower due to a one-time payment in Q3 2024.

Game Sales and Royalties: EUR 6.0 million, driven by FPC Firebreak, Alan Wake 2, and Control.

Operating Profit: EUR 16.4 million negative, impacted by a EUR 14.9 million non-cash impairment.

EBITDA: EUR 0.7 million positive in Q3 2025.

Operating Expenses: Total operating expenses excluding depreciations remained stable year-on-year.

Personnel Expenses: Increased by 11.7% to EUR 7.2 million in Q3 2025.

Cash Flow: Increased due to more inflowing sales-related payments.

Total Cash Level: EUR 36.5 million at the end of Q3 2025, an increase of EUR 8.9 million from the previous quarter.

Year-to-Date Revenue: EUR 42.5 million, higher than the previous year’s Q1 to Q3 revenue of EUR 39 million.

EBITDA Margin: 17.6% year-to-date 2025.

Operating Profit Margin: Minus 36.7% year-to-date 2025, due to impairment booking.

Release Date: October 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Remedy Entertainment PLC (STU:8P8) reported a positive operating cash flow for Q3 2025, indicating a healthy cash position.

The company celebrated its 30-year anniversary, highlighting its long-standing presence and success in the gaming industry.

Game sales and royalties increased significantly, driven by titles like Alan Wake 2 and Control, showcasing strong performance in the digital marketplace.

The company has gained valuable experience in self-publishing and digital marketing channels, which could lower risk profiles for future launches.

Remedy Entertainment PLC (STU:8P8) has a strong pipeline with projects like Control 2 and Max Payne remakes, which are progressing according to milestone goals.

Revenue for Q3 2025 declined by 32% compared to the same period last year, primarily due to lower development fees.

The company recognized a non-cash impairment of EUR 14.9 million related to FPC Firebreak, impacting operating profit negatively.

Operating profit for Q3 2025 was EUR 16.4 million negative, largely due to the impairment related to FPC Firebreak.

Personnel expenses increased by 11.7% year-on-year, contributing to higher operational costs.

The rapid growth in personnel and projects since 2017 was acknowledged as too fast, leading to missed critical signals and challenges in execution.

Story Continues

Q: Now that Remedy announced its CEO change, what will change in the company? A: Markus Maki, Interim CEO, stated that his role is to ensure the company meets its key targets and moves towards profitability. It’s too early to speculate on larger-scale changes.

Q: Can you elaborate on why the CEO change happened quickly? A: Markus Maki explained that the CEO change is a board decision, and he cannot comment further on the timing.

Q: Have you made or are you planning to make personnel reductions as a result of balancing the investments made in FPC Firebreak? A: Markus Maki mentioned that they are reallocating people from Firebreak to other teams but do not have plans for personnel reductions at this point.

Q: What have been the specific key learnings in self-publishing from FPC Firebreak? A: Markus Maki noted that changing players’ opinions post-launch is difficult, and driving conversion in a game with mixed reviews is challenging. They have learned a lot about marketing conversion and other aspects.

Q: Are there plans to pursue live service models or multiplayer modes in current projects? A: Markus Maki stated that they have not announced anything specific yet but emphasized the importance of exploring new audiences, customers, and business models.

Q: How will Remedy ensure enough cash flow in the future to fund ongoing projects? A: Santtu Kallionpaa, CFO, expressed confidence in their strong games pipeline and financial position, mentioning partner projects as a potential tool for future financial stability.

Q: What is the plan with the big cash pile? Is there a consideration for buybacks? A: Markus Maki indicated that share buybacks are a tool available to the board, but it’s not for management to comment on at this point.

Q: Considering the suboptimal outcome of FPC Firebreak, what makes you confident in reaching the targets set for 2027? A: Markus Maki expressed confidence in their strong portfolio of upcoming products and their progress.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.