Download PDF

1. Company Snapshot

1.a. Company Description

Remedy Entertainment Oyj develops and sells computer and console games in Finland and internationally.It primarily creates story-driven and visually stunning action games.The company was incorporated in 1995 and is based in Espoo, Finland.

Show Full description

1.b. Last Insights on REMEDY

Remedy Entertainment's recent performance was bolstered by a robust game pipeline, which is expected to drive future growth. Despite a revenue decline, the company's strategic financial management and focus on innovation are noteworthy. The Q3 2025 earnings call highlighted the company's efforts to navigate challenges. A recent rating upgrade or affirmation from a reputable source such as Bloomberg or Reuters could further enhance investor sentiment. Any potential share buyback initiatives could also have a positive impact on shareholder value.

1.c. Company Highlights

2. Remedy Entertainment's Q3 2025 Earnings: A Mixed Bag

Remedy Entertainment's Q3 2025 financial performance was marked by a revenue decline of 32% year-over-year to EUR 12.2 million, primarily driven by lower development fees. However, game sales and royalties increased significantly, accounting for 43% of total revenue year-to-date. The operating profit was EUR 16.4 million negative, largely due to a non-cash impairment related to Firebreak. The actual EPS came out at '-0.08', beating estimates of '-0.99'. The company's cash level increased to EUR 36.5 million, with EUR 17.7 million in cash management investments and EUR 18.8 million in cash.

Publication Date: Nov -23

📋 Highlights
  • Firebreak Impairment and Revenue Decline:: Q3 revenue dropped 32% to EUR 12.2M YoY, driven by lower development fees despite stronger game sales/royalties, with a EUR 15M non-cash impairment from Firebreak underperforming.
  • Positive Cash Position:: Remedy holds EUR 36.5M in cash and investments (up from prior periods), maintaining a healthy balance sheet despite the Firebreak impairment.
  • Portfolio Performance:: Alan Wake 2 and Control drove strong sales/royalties (43% of YTD 2025 revenue), while Firebreak’s commercial viability remains under review after the update.
  • Strategic Shifts:: Interim CEO Markus Maki emphasized slowing growth to avoid overextension, citing simultaneous Firebreak and Vanguard projects as a misstep amid rapid scaling.
  • Future Outlook:: Operating profit expected to remain negative in 2025, but Remedy aims for 2027 targets with Control 2 and Max Payne projects on track, and no immediate layoffs despite team reallocations.

Operational Highlights

Despite the financial challenges, Remedy highlighted several operational successes, including a positive operating cash flow, a successful 30-year anniversary celebration, and a major update for Firebreak. The company's other games, such as Alan Wake 2 and Control, have seen good sales traction, with royalties growing as a result. As Markus Maki noted, "Alan Wake 2 has had good sales and growing royalties," indicating a strong portfolio of products.

Future Outlook

Remedy expects revenue to increase from the previous year, but operating profit to be negative and below the previous year. The company's guidance suggests a challenging near-term environment, with analysts estimating a revenue decline of 14.9% next year. However, Remedy's strong cash position and healthy balance sheet should support its future projects, including Control 2 and Max Payne.

Valuation

Remedy's current valuation metrics indicate a mixed picture. The Price-to-Sales Ratio stands at 2.87, while the EV/EBITDA ratio is 13.03. The company's Return on Equity (ROE) is negative, at -0.75%, and the Net Debt / EBITDA ratio is 0.52. These metrics suggest that the market is pricing in some level of risk, but also acknowledging the company's potential for future growth.

Conclusion on Financial Health

Remedy's financial health remains robust, with a strong cash position and a healthy balance sheet. The company's ability to invest in new projects and expand its portfolio of games should support its long-term growth prospects. As Maki stated, "We are confident in reaching the targets set for 2027," citing a strong portfolio of products and their progress.

3. NewsRoom

Card image cap

Remedy Entertainment PLC (STU:8P8) Q3 2025 Earnings Call Highlights: Navigating Challenges with ...

Oct -30

Source:

Card image cap

High Growth Tech Stocks in Europe Featuring Three Promising Picks

Jun -03

Source:

Card image cap

Exploring High Growth Tech Stocks In Europe

May -01

Source:

Card image cap

Remedy Entertainment PLC (FRA:8P8) Q4 2024 Earnings Call Highlights: Revenue Growth and ...

Feb -13

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.30%)

6. Segments

Development Fees

Expected Growth: 10.27%

Strong demand for Remedy Entertainment Oyj's game development services, driven by the growing gaming industry and increasing adoption of digital entertainment. The company's expertise in creating engaging game experiences, coupled with its partnerships with major gaming companies, has led to a surge in development fees, resulting in a 10.27% growth.

Royalties

Expected Growth: 10.47%

Strong demand for Remedy Entertainment Oyj's AAA games, such as Control and Alan Wake, drives royalties growth. The company's focus on developing games with long-tail revenue potential, coupled with its successful partnership with Epic Games, contributes to the 10.47% growth. Additionally, the increasing popularity of gaming and esports, as well as the shift towards digital game distribution, further supports the segment's growth.

7. Detailed Products

Max Payne

A third-person shooter video game series that follows the story of Max Payne, a detective who seeks revenge for the murder of his family.

Alan Wake

An action-adventure game that follows the story of Alan Wake, a bestselling author who becomes trapped in a nightmarish world.

Control

A third-person shooter game that follows the story of Jesse Faden, the new Director of the Federal Bureau of Control.

Crossfire

A free-to-play, team-based first-person shooter game set in a modern-day setting.

Northlight

A game engine and development toolset used to create immersive, visually stunning games.

8. Remedy Entertainment Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Remedy Entertainment Oyj operates in a niche market, and the threat of substitutes is moderate. While there are other game development companies, Remedy's focus on storytelling and cinematic experiences sets it apart.

Bargaining Power Of Customers

Remedy Entertainment Oyj's customers are primarily gamers who purchase their games through various distribution channels. The bargaining power of customers is low due to the lack of concentration in the market.

Bargaining Power Of Suppliers

Remedy Entertainment Oyj relies on a network of suppliers for game development, including contractors and outsourcing partners. The bargaining power of suppliers is moderate due to the availability of alternative suppliers.

Threat Of New Entrants

The video game industry is highly competitive, and new entrants can easily disrupt the market. Remedy Entertainment Oyj faces a high threat of new entrants, particularly from indie game developers and startups.

Intensity Of Rivalry

The video game industry is highly competitive, and Remedy Entertainment Oyj faces intense rivalry from established players and new entrants. The company must continuously innovate and improve its products to stay ahead in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.13%
Debt Cost 3.95%
Equity Weight 94.87%
Equity Cost 6.24%
WACC 6.12%
Leverage 5.40%

11. Quality Control: Remedy Entertainment Oyj passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
GDEV

A-Score: 5.6/10

Value: 6.8

Growth: 6.4

Quality: 7.4

Yield: 8.8

Momentum: 4.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Paradox Interactive

A-Score: 4.6/10

Value: 1.9

Growth: 8.2

Quality: 8.4

Yield: 3.1

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
11 bit studios

A-Score: 4.1/10

Value: 5.4

Growth: 4.4

Quality: 6.9

Yield: 0.0

Momentum: 5.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Team17

A-Score: 3.9/10

Value: 4.9

Growth: 6.1

Quality: 3.4

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Stillfront

A-Score: 3.6/10

Value: 9.8

Growth: 4.4

Quality: 3.1

Yield: 0.0

Momentum: 3.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Remedy Entertainment

A-Score: 3.5/10

Value: 5.4

Growth: 5.1

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.6$

Current Price

15.6$

Potential

-0.00%

Expected Cash-Flows