Remedy Entertainment

Remedy Entertainment is a Finnish AAA game studio founded in 1995 in Espoo, listed on Helsinki Nasdaq First North since 2017. The portfolio is exceptional for an independent: Max Payne (created at Remedy, IP sold to Take-Two 2002), Alan Wake (Epic Games funded Alan Wake 2 in 2023; the IP returned to Remedy in 2024 after Epic publisher rights expired), Control (Annapurna publishing 505 Games console — Remedy owns the IP and Control 2 is in production with full creative control), and Quantum Break (Microsoft Xbox 2016).

The defining strategic shift since 2023 is the Remedy Connected Universe. After the Alan Wake 2 launch (October 2023, 1.8 million copies in first three months, recouped Epic investment by mid-2024), Remedy moved decisively toward direct self-publishing on previously milestone-funded titles. FBC: Firebreak — a Control-universe 3-player cooperative shooter — launched in 2025 as Remedy’s first self-published live-service title. Control 2 entered production in 2024 with 505 Games as console publisher but Remedy retaining the IP and Steam self-publishing economics. Tencent holds 3.8 percent and signed a partnership for an unannounced mobile project.

Financials: trailing revenue 59.5 million EUR, growth 46.3 percent year over year, gross margin 79.43 percent, operating margin 91.81 percent (driven by milestone-payment recognition timing, not steady-state), free cash flow essentially break-even at 0.9 million EUR positive, debt-to-equity 32.28, current ratio 3.25. Trailing P/E zero (small accounting loss); forward P/E 21.77 reflects analyst confidence in Control 2 and FBC: Firebreak revenue ramp. EV/EBITDA 53.91 reflects depressed trailing EBITDA, not steady-state. Beta 1.03. Two-analyst consensus buy with mean target 16.75 EUR (33.8 percent upside). The stock trades at 18.4 percent of its 52-week range (11.06 to 19.00 EUR).

Insider ownership is the defining 13F equivalent: founders Sam Lake (creative director) and management retain significant founder stakes, with Tencent at 3.8 percent and a long-standing Finnish institutional cohort (Nordea, OP Investment Funds). The stock is too small for major US 13F coverage but Finnish micro-cap funds Evli, Mandatum and Aktia have stable positions. No notable short interest is published for Helsinki First North names. The investable signal is creative-director and senior staff retention through the post-Alan Wake 2 milestone period, plus Tencent stake stability — neither has been reduced through the 2024-2025 share price compression.

EV/Revenue 2.67 is in line with mid-tier AAA game studio peers — Embracer Group at 1.5x (distressed), CD Projekt RED at 4.5x (Cyberpunk re-rate), Paradox Interactive at 4.0x. The Remedy multiple does not yet reflect Alan Wake IP retention or Control 2 self-publishing economics. On 2027 revenue projections of 110 to 140 million EUR (Control 2 launch year plus Firebreak tail plus back catalogue), at 3.5x EV/Revenue the implied market cap is 385 to 490 million EUR — 22 to 31 EUR per share, which is 75 to 145 percent upside. Analyst target 16.75 EUR uses more conservative multiples. The asymmetry pays off on successful Control 2 launch.

1. :
2. :
3. :

Remedy Entertainment is a rare situation: AAA story-driven game studio with three major franchises (Alan Wake, Control, Max Payne legacy) and the unusual position of fully owning the IP it created. The Alan Wake 2 publisher recoupment in 2024 is the single most important undervalued event — the IP now sits on a 170 million EUR market cap. Control 2 launching with Remedy keeping Steam self-publish economics adds 30 to 50 percent operating margin versus traditional publishing splits. The bear thesis is real — live-service execution risk on FBC: Firebreak and binary outcomes on Control 2 reception. But at 18.4 percent of its 52-week range with 46 percent trailing revenue growth, the asymmetry is compelling. Position size 1 to 2 percent of portfolio, scale up on Control 2 pre-order data. Tencent acquisition optionality is a tail-call.