Finnish developer Remedy Entertainment has released its financial results for Q3 2025, revealing a period marked by both record game sales and significant financial challenges. While the company saw a dramatic increase in game sales revenue, largely from digital royalties and growing catalog performance, the poor reception of its first self-published title, FBC: Firebreak, resulted in a substantial operating loss.
During the July–September 2025 period, game sales and royalties surged to EUR 6.0 million, a sharp rise from EUR 0.8 million in the same quarter of 2024 — a sevenfold increase. This represents a major turning point for Remedy, as game sales have now become a central component of its business model. However, despite this strong sales growth, overall revenue fell 32 percent year-over-year, primarily due to a steep decline in development fees from external publishing partners. The company’s quarterly turnover decreased from EUR 17.9 million to EUR 12.2 million, and its operating result plunged to EUR -16.4 million.
The main factor behind this loss was the disappointing performance of FBC: Firebreak, Remedy’s first self-published project and an ambitious co-op first-person shooter set within the company’s connected universe. The game launched worldwide on June 17, 2025, across PC, PlayStation 5, and Xbox Series X|S, also debuting as a day-one title on both Xbox Game Pass and PlayStation Plus Extra/Premium. Despite an extensive update in September titled “Breakpoint” that aimed to fix core issues, the game’s sales remained below expectations. Remedy subsequently revised its long-term sales outlook and recognized a EUR 14.9 million non-cash impairment, effectively writing down most of the project’s capitalized development costs and related publishing rights. This write-down pushed the company’s operating profit to -135.1 percent of revenue for the quarter.
Nevertheless, not all was negative. Royalty revenues from Alan Wake 2 increased compared to earlier quarters, helped by the game’s entry into the Chinese market through a partnership with Epic Games and its inclusion in PlayStation Plus’ October lineup. The studio’s 2019 hit Control also contributed positively, as Remedy’s acquisition of its publishing rights earlier in 2025 allowed it to explore new audiences in emerging markets. Additionally, subscription deals tied to FBC: Firebreak provided a modest but steady revenue stream despite weak direct sales.
For the first nine months of 2025, Remedy reported EUR 18.2 million in game sales and royalties, a fivefold increase from EUR 3.6 million in the same period last year. These now account for 43 percent of total revenue, compared to only 9 percent a year ago, illustrating the company’s rapid transformation from a work-for-hire developer into a self-publishing studio. However, this new direction also carries higher financial risk, as demonstrated by the costly Firebreak setback.
Following the quarter, Remedy underwent a leadership change. CEO Tero Virtala stepped down and was replaced by Markus Mäki as interim CEO, who will focus on enhancing operational discipline and driving more consistent results. The company reaffirmed its commitment to its future projects, with Control 2 and the Max Payne 1&2 Remake both in full production, and a new unannounced title currently in the proof-of-concept phase.
Looking ahead, Remedy expects revenue to rise year-over-year, though it forecasts another negative operating profit for the full fiscal year. The company’s long-term strategy remains ambitious: by 2027, it aims to double its 2024 revenue and achieve an EBITDA margin of 30 percent, reflecting its belief in the profitability of owning and publishing its own IPs.
