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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.

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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's 2025 Earnings: A Year of Growth and Preparation for CONTROL Resonant

Remedy reported revenue of EUR 59.5 million for 2025, representing a 17% growth from 2024, with 45% of revenue coming from game sales and royalties. The company's EBITDA was EUR 11.3 million positive, driven by sales development. However, the operating profit was negative EUR 14.9 million due to a non-cash impairment related to Firebreak. The actual EPS came out at '-0.08', missing estimates at '0.135'.

Publication Date: Feb -24

📋 Highlights
  • Revenue Growth:: EUR 59.5 million in 2025, up 17% YoY, with 45% from game sales and royalties.
  • EBITDA Performance:: Positive EUR 11.3 million driven by sales, but operating profit negative EUR 14.9 million due to Firebreak impairment.
  • CONTROL Franchise Success:: Lifetime sales exceed 5 million copies; upcoming CONTROL Resonant (2026) with self-publishing strategy.
  • Cash Flow Decline:: Full-year cash flow EUR 4.5 million positive, down from EUR 41.1 million in 2024 due to IP investments.
  • 2026 Guidance:: Anticipated revenue and EBITDA growth, with CONTROL Resonant launch and new CEO (Jean-Charles) prioritizing operational excellence.

Financial Highlights

The revenue growth was driven by higher game sales and royalties, as well as development fees, as noted by CFO Santtu Kallionpaa. The company's cash flow was EUR 4.5 million positive for the full year, but declined from EUR 41.1 million in 2024 to EUR 29.4 million in 2025 due to investments in own IPs and self-publishing activities.

CONTROL Franchise and Upcoming Release

Interim CEO Markus Maki emphasized the success of the CONTROL franchise, with lifetime sales exceeding 5 million copies, and the upcoming release of CONTROL Resonant. The game is expected to be self-published with an ambitious global campaign, and Remedy has exceeded its internal expectations in terms of visibility and wish list numbers.

Valuation and Outlook

With a P/S Ratio of 3.8 and an EV/EBITDA of 15.14, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 18.7%. Remedy expects its full-year revenue and EBITDA to increase from the previous year in 2026. The company's guidance for 2026 assumes varying development fees depending on game milestones and progress.

Future Plans and Developments

Markus Maki mentioned that Remedy might consider partner games in the future, but has no current announcements. The company is also working on the Max Payne development project, driven by Rockstar. Remedy learned a lot from publishing FBC: Firebreak, including technical and digital marketing aspects, which will inform their approach to publishing CONTROL Resonant.

Conclusion on Valuation Metrics

Remedy's current valuation metrics, including a P/E Ratio of -258.97 and a P/B Ratio of 3.36, indicate that the market is pricing in a significant turnaround in profitability. The ROE and ROIC are negative, but the Net Debt / EBITDA is manageable at 0.65. The Free Cash Flow Yield is 10.22%, which is a positive sign.

3. NewsRoom

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

Oct -30

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High Growth Tech Stocks in Europe Featuring Three Promising Picks

Jun -03

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Exploring High Growth Tech Stocks In Europe

May -01

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

Feb -13

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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: 5.5/10

Value: 7.8

Growth: 6.4

Quality: 7.5

Yield: 8.8

Momentum: 2.5

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Paradox Interactive

A-Score: 4.4/10

Value: 1.8

Growth: 8.1

Quality: 8.5

Yield: 3.1

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Team17

A-Score: 4.4/10

Value: 4.7

Growth: 6.1

Quality: 3.5

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
11 bit studios

A-Score: 3.9/10

Value: 5.1

Growth: 4.4

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Remedy Entertainment

A-Score: 3.3/10

Value: 4.6

Growth: 5.1

Quality: 5.2

Yield: 0.0

Momentum: 3.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Stillfront

A-Score: 3.2/10

Value: 9.4

Growth: 4.4

Quality: 3.1

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.54$

Current Price

13.54$

Potential

-0.00%

Expected Cash-Flows