This article first appeared on GuruFocus.

Release Date: August 11, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Control Resonant has generated over 1.5 million wishlists across platforms, with pre-orders tracking ahead of previous Remedy games.

  • The game is day one on all major platforms, a first for Remedy, and is the company’s most localized product ever, helping to reach new markets.

  • Early media reception for Control Resonant has been highly positive, with outlets like Eurogamer and Polygon praising the game’s quality and uniqueness.

  • The original Control game continues to perform well, growing year-on-year in Q2 2026 in its seventh year on the market, with over 6 million copies sold and 20 million lifetime players.

  • The company’s new unannounced project has moved to production readiness, progressing faster than previous games due to better planning and staffing.

  • Remedy has successfully reduced external development costs by completing more work in-house, improving cost efficiency.

Negative Points

  • Q2 2026 revenue declined 40% year-on-year to EUR10.2 million, primarily due to the absence of FBC Firebreak launch accruals from the comparison period.

  • The company reported an operating loss of EUR3.9 million and negative EBITDA of EUR2.4 million, impacted by increased marketing spend for Control Resonant.

  • Operating cash flow was slightly negative at EUR0.7 million, driven by the low revenue level during the quarter.

  • Marketing expenses are expected to increase further in Q3, with the second half of the year projected to have significantly higher marketing costs than the first half.

  • FBC Firebreak, released a year ago, has seen a decline in game sales and royalties, contributing to the year-on-year revenue drop.

  • The company faces a highly competitive launch window in September, with many major titles releasing around the same time as Control Resonant.

Q & A Highlights

Q: After disclosing more than 1.5 million wishlists, what can you tell us about the conversions in the pre-orders? Are the pre-orders running ahead, in line, or behind your internal plans?A: CEO Jean-Charles Cordesron stated that the 1.5 million wishlist figure is an achievement and the company is “pretty much on track” with its plans. He noted that wishlist conversion is “not science,” as some games with many wishlists don’t convert well, while others do. However, he is bullish on pre-orders, noting they are tracking “ahead of some of our previous games,” which is a healthy sign for the sequel to a well-established franchise.

Q: How does your share of net sales with Annapurna change once the production and marketing investment is recouped?A: CFO Santo Caliampa explained that the recoupment of investments happens in relation to the investments made. After the investment has been fully recouped, Remedy will receive a greater share of the net sales of Control Resonant.

Q: Will Q3 marketing spend for Control Resonant exceed Q1 and Q2 combined?A: CFO Santo Caliampa confirmed that it is a “good assumption” that the peak of marketing costs and investments will occur around the launch window. While he did not give exact guidance for Q3, he stated that marketing costs in the second half of the year will be greater than in the first half.

Q: How has Control Resonant been received in the Chinese market, and what are your expectations for that market?A: CEO Jean-Charles Cordesron highlighted that China is a priority market, driven by data showing the original Control performed very well there. He cited the successful presence at ChinaJoy, where fans, press, and content creators played the game and received it well. He emphasized the importance of localization quality, noting that Chinese-speaking markets are the second largest market in Steam unit pre-orders.

Q: The third new project is moving faster than previous games. What are the key drivers behind accelerating the pace?A: CEO Jean-Charles Cordesron attributed the faster pace to a team that is “well staffed early” and a project that is “well managed and well planned,” allowing the company to hit development milestones on time and on quality. He stressed that the goal is not just to pass gates for the sake of it, but to build a great game at every step.

Q: Is the marketing budget for Control Resonant fixed, or is there potential to increase it if reception is good?A: CFO Santo Caliampa stated that while there is a base marketing plan, the budget is flexible. He noted that when marketing a game of this scale, there needs to be room to react based on how things are working out, allowing for adjustments to the campaign.

Q: Are you exploring live service games in the future?A: CEO Jean-Charles Cordesron stated that live service is “not a focus today.” He reiterated that Remedy’s core strength lies in “incredible, super creative, high-quality single player experiences,” and he will not move away from that until it is in an excellent place. He added that if there is a good reason to look at a live service model in the future, they will, but it is not a priority now.

Q: Have you considered expanding the Remedy Connected Universe beyond games, for example, transmedia or films?A: CEO Jean-Charles Cordesron confirmed that transmedia is “central to Remedy” and that the Remedy Connected Universe (RCU) is “central to Remedy’s future.” He noted that the company has already made some moves in this space and believes it would be “an enormous waste” not to invest in the story-rich franchises for transmedia opportunities.

Q: Are you considering adding additional language support like Arabic or additional localizations?A: CEO Jean-Charles Cordesron acknowledged hearing from fans in the MENA region disappointed by the lack of Arabic support. While he could not make promises for Control Resonant specifically, he stated that localization is “really important” for reaching new markets and that Remedy as a whole needs to solve this issue, indicating they will look into it for the future.

Q: Will outsource development costs increase again when the third new project moves closer to production?A: CFO Santo Caliampa stated that external development costs depend on the needs of the game projects. While outsourcing adds flexibility to internal capacity, the company has improved its ways of working to do more in-house. He does not expect any significant increases in external development costs going forward.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.