Remedy Expresses Disappointment with Q3 Results

Remedy has published its financial report for the third quarter of 2025, highlighting a surge in game sales and royalties, yet experiencing a downturn in revenue and profitability. Key figures include: - Revenue of €12.2 million, representing a 32% decrease - An operating loss of €16.4 million, compared to an operating loss of €2.4 million in the same quarter last year The company's Q3 performance was impacted by the underwhelming performance of its cooperative title, FBC: Firebreak. Despite receiving its first major update towards the end of Q3, sales only improved marginally. As a result, Remedy has revised its outlook for 2025 and recognised a non-cash impairment of €14.9 million, comprising its capitalised development costs and purchased publishing and distribution rights. Remedy has redirected development resources to other titles, while continuing to work on Firebreak to enhance player value, driven by long-term sales expectations. Following the write-down of Firebreak and the change in outlook, Tero Virtala stepped down as CEO after a nine-year tenure. Remedy co-founder and chief product officer Markus Mäki has been appointed interim CEO, having relinquished his roles as chairman of the board and board of directors. Henri Österland has been elected as the new chairman. Mäki noted that Firebreak's first multiplayer launch was technically successful in a cross-platform environment and that the publishing team has developed capabilities to support future self-published titles. He added: 'Although we are not satisfied with our recent financial performance, we remain confident in our ability to create exceptional video games that resonate with players and drive commercial success, ultimately leading us back to profitability.' Remedy's Q3 revenue decreased by 32% to €12.2 million, compared to €17.9 million in the same period last year. This decline was partly due to revenue from Annapurna related to development for Control 2, prior to entering an agreement in August that will see Annapurna finance 50% of the game. The company experienced significant growth in game sales and royalties during Q3, primarily driven by revenue from subscription service agreements for Firebreak, alongside royalties from Alan Wake 2 and game sales of Control. Alan Wake 2 saw an increase in royalty revenue, with the game being introduced to the Chinese market with promising initial results. Other titles in the Alan Wake franchise continued to sell steadily during this period. Since reacquiring the rights for Control in 2024, Remedy has focused on discovering new markets for the game, particularly outside Western countries. Mäki stated: 'We believe this systematic work in building the brand will also expand our addressable market for the whole franchise in the future.' Looking ahead, Remedy confirmed that its in-development projects, including Control 2 and the Max Payne remakes, are progressing according to plan. Both projects are in full production, while a third unannounced title is currently in the proof of concept stage. Mäki explained: 'The majority of our effort is focused on working with our established franchises – Control and Alan Wake – which we continue to invest in and expand into other media as part of our long-term strategy. While carefully balancing our product risk, we also need to retain the ability to create new experiences for our audiences, as we have for the past 30 years.'