Remedy has released its financial report for its third quarter (July to September 2025), reporting a “rise in game sales and royalties” and a “decline in revenue and profitability.”
The numbers
- Revenue: €12.2 million (down 32%)
- Operating loss: €16.4 million (compared to operating loss of €2.4 million for the same quarter last year)
The highlights
Remedy’s third quarter was overshadowed by the underperformance of its co-op title, FBC: Firebreak.
The game received its first major update towards the end of Q3, which resulted in “sales improving only marginally.”
As a result, Remedy updated its overall outlook for 2025 and recognised a non-cash impairment of €14.9 million consisting of its capitalised development costs and purchased publishing and distribution rights.
Remedy has “moved development resources to other in-development titles” from Firebreak, while continuing work on Firebreak to “enhance player value, which are justified by [its] long-term sales expectations.”
Following the write down of Firebreak and change in outlook, Tero Virtala stepped down as CEO after nine years at Remedy.
Remedy co-founder and chief product officer Markus Mäki was appointed interim CEO, having stepped down as chairman of the board and board of directors. Henri Österland was elected as the new chairman.
Speaking about Firebreak, Mäki did note that its first multiplayer launch “was technically successful in a cross-platform environment” and its “publishing team has built capabilities which support the releases of future self-published titles.”
He continued: “We aren’t satisfied with our recent financial performance, but we remain confident in our ability to create great video games that resonate with players and which are commercially successful, leading us back to profitability.”
Looking at overall revenue for Q3, Remedy noted a 32% decrease to €12.2 million (compared to €17.9 million during the same period last year).
This was due to revenue from Annapurna related to development for Control 2. Remedy noted that this was before entering an agreement last August, which will see Annapurna finance 50% of the game.
Remedy saw strong increases in game sales and royalties during its third quarter, which was mainly driven by revenue from subscription service agreements for Firebreak, alongside royalties from Alan Wake 2 and games sales of Control.
Alan Wake 2 saw a growth in royalty revenue, and the game was introduced to the Chinese market “with encouraging initial results”.
It noted that other titles in the Alan Wake franchise have “continued to sell steadily” during this period.
Since buying back the rights for Control in 2024, Remedy highlighted that it has since “focused on discovering new markets for the game” – particularly outside Western countries.
“We believe this systemic work in building the brand will also expand our addressable market for the whole franchise in the future,” said Mäki.
Looking ahead, Remedy reiterated 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 a proof of concept stage.
“The majority of our effort goes into 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,” Mäki explained.
“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.”
