{"id":109363,"date":"2025-10-30T19:39:08","date_gmt":"2025-10-30T19:39:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/109363\/"},"modified":"2025-10-30T19:39:08","modified_gmt":"2025-10-30T19:39:08","slug":"remedy-entertainment-plc-stu8p8-q3-2025-earnings-call-highlights-navigating-challenges-with","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/109363\/","title":{"rendered":"Remedy Entertainment PLC (STU:8P8) Q3 2025 Earnings Call Highlights: Navigating Challenges with …"},"content":{"rendered":"\n

This article first appeared on GuruFocus<\/a>.<\/p>\n

Revenue: EUR 12.2 million in Q3 2025, a decline of 32% compared to Q3 2024.<\/p>\n

Development Fees: EUR 6.1 million, lower due to a one-time payment in Q3 2024.<\/p>\n

Game Sales and Royalties: EUR 6.0 million, driven by FPC Firebreak, Alan Wake 2, and Control.<\/p>\n

Operating Profit: EUR 16.4 million negative, impacted by a EUR 14.9 million non-cash impairment.<\/p>\n

EBITDA: EUR 0.7 million positive in Q3 2025.<\/p>\n

Operating Expenses: Total operating expenses excluding depreciations remained stable year-on-year.<\/p>\n

Personnel Expenses: Increased by 11.7% to EUR 7.2 million in Q3 2025.<\/p>\n

Cash Flow: Increased due to more inflowing sales-related payments.<\/p>\n

Total Cash Level: EUR 36.5 million at the end of Q3 2025, an increase of EUR 8.9 million from the previous quarter.<\/p>\n

Year-to-Date Revenue: EUR 42.5 million, higher than the previous year’s Q1 to Q3 revenue of EUR 39 million.<\/p>\n

EBITDA Margin: 17.6% year-to-date 2025.<\/p>\n

Operating Profit Margin: Minus 36.7% year-to-date 2025, due to impairment booking.<\/p>\n

Release Date: October 29, 2025<\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n

Remedy Entertainment PLC (STU:8P8<\/a>) reported a positive operating cash flow for Q3 2025, indicating a healthy cash position.<\/p>\n

The company celebrated its 30-year anniversary, highlighting its long-standing presence and success in the gaming industry.<\/p>\n

Game sales and royalties increased significantly, driven by titles like Alan Wake 2 and Control, showcasing strong performance in the digital marketplace.<\/p>\n

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

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

Revenue for Q3 2025 declined by 32% compared to the same period last year, primarily due to lower development fees.<\/p>\n

The company recognized a non-cash impairment of EUR 14.9 million related to FPC Firebreak, impacting operating profit negatively.<\/p>\n

Operating profit for Q3 2025 was EUR 16.4 million negative, largely due to the impairment related to FPC Firebreak.<\/p>\n

Personnel expenses increased by 11.7% year-on-year, contributing to higher operational costs.<\/p>\n

The rapid growth in personnel and projects since 2017 was acknowledged as too fast, leading to missed critical signals and challenges in execution.<\/p>\n

Story Continues <\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Revenue: EUR 12.2 million in Q3 2025, a decline of 32% compared…\n","protected":false},"author":2,"featured_media":1147,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[78559,78557,78556,111,139,69,78163,78558,78561,78560,145],"class_list":{"0":"post-109363","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-technology","8":"tag-ebitda-margin","9":"tag-firebreak","10":"tag-markus-maki","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nz","14":"tag-operating-profit","15":"tag-operating-profit-margin","16":"tag-personnel-expenses","17":"tag-remedy-entertainment","18":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/109363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=109363"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/109363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/1147"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=109363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=109363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=109363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}