Remedy Entertainment has a Rough Patch in its Q3 2025 Report
Remedy Entertainment's January-September 2025 business review confirmed that the third quarter was very disappointing, principally as a result of its new self-publishing release FBC: Firebreak failing to make a mark. The effect financially was significant operating loss, a major asset write-down and a change in the leadership of the company.
Financial Performance in the Third Quarter of 2025 (Jul-Sep)
The profitability of the third quarter paints a very different picture in comparison to the same period in the previous year. Some numbers:
- Revenue: Decreased by 32% to EUR 12.2 million, from EUR 17.9 million in Q3 2024, as lower development fees had their implications.
- Operating Profit (EBIT): Registered significant loss of EUR -16.4 million, striking contrast to the profit of EUR 2.4 million of the last year.
- Impairment Charge: The operating loss was greatly increased by a EUR 14.9 million non-cash impairment related to the capitalized development and publishing costs of FBC: Firebreak.
- Game Sales & Royalties: On a positive note, game sales and royalties increased strongly to EUR 6.0 million (up from EUR 0.8 million), driven by Alan Wake 2, Control, and FBC: Firebreak subscription agreements.
The Impact of FBC: Firebreak
Remedy's first self-published three-player co-op FPS fbc, published in June 2025, was hurriedly released under strong pressure towards the end of the financial year. According to the report, although there was a major update in September ("Breakpoint"), sales improved "only marginally," prompting the company to revisit its long-term sales estimates and write down the majority of the costs capitalized against the game.
Despite the commercial challenges, Remedy pointed out that the technical launch of multiplayer was successful, and it helped build in-house publishing capacity for future titles.
Leadership Changes and Strategic Focus
Following the review period, Tero Virtala stepped down as CEO on October 22, 2025. Markus Mäki was appointed interim CEO to "drive stronger results."
"For his part, he will comment that the overall strategy of Remedy is unchanged and his immediate focus will be on 'ensuring our commercial performance alongside successful development projects.'" By this, he means that profit will be realized by providing "great, distinctive and commercially successful video games."
Project Pipeline and Future Prospects
Remedy's projects forever in the future are among its strengths. Currently, the company affirmed the status of its pipeline on development projects:
- FBC: Firebreak: Post-launch development is ongoing.
- Control 2: In full production.
- Max Payne 1&2 remake: In full production with Rockstar Games.
- New project: Currently in the proof-of-concept stage.
In its outlook for the full year 2025, Remedy updated the forecast to show that revenue for the company will increase over the prior year, although operating profit (EBIT) is expected to be negative and lower than last year's EBIT.
