Q2 2026 Remedy Entertainment Oyj Earnings Call

August 11, 2026

[Company Representative] (Remedy): CEO Jean-Charles Gaudechon and Remedy's CFO, Santtu Kallionpää. The agenda for today, JC will guide us through the quarter's numbers, and then we'll take a deeper look at Control Resonant. We'll cover our marketing ramp-up during Q2, the sentiment, commercial indicators, and the launch window positioning. Then, as usual, we'll take a look at our gains in the market as well as our development pipeline. Santtu will then do a deeper dive on the financials, and we'll end with a Q&A. Any questions you have already, feel free to leave those in the text box below the webcast. Without further ado, please, JC, the stage is yours.

Aapo Kilpinen: CEO Jean-Charles Gaudechon and Remedy's CFO, Santtu Kallionpää. The agenda for today, JC will guide us through the quarter's numbers, and then we'll take a deeper look at Control Resonant. We'll cover our marketing ramp-up during Q2, the sentiment, commercial indicators, and the launch window positioning. Then, as usual, we'll take a look at our gains in the market as well as our development pipeline. Santtu will then do a deeper dive on the financials, and we'll end with a Q&A. Any questions you have already, feel free to leave those in the text box below the webcast. Without further ado, please, JC, the stage is yours.

Speaker #1: CEO Jean-Charles Cornichon and Remedy CFO Santtu Kallionpää. The agenda for today: JC will guide us through the quarter's numbers, and then we'll take a deeper look at the Control resonants.

Speaker #1: We'll cover our marketing ramp-up during Q2, the sentiment, commercial indicators, and the launch window positioning. Then, as usual, we'll take a look at our gain in the market, as well as our development pipeline.

Speaker #1: Santtu will then do a deeper dive on the financials, and we'll end with a Q&A. Any questions you have already, feel free to leave those in the text box below the webcast.

Speaker #1: But without further ado, please, JC, the stage is yours.

Speaker #2: All right. Thank you, Apple. Hello everyone. So, the headline numbers first: revenue was €10.2 million this quarter, down 40% from the comparison period.

Jean-Charles Gaudechon: All right. Thank you, Aapo. Hello, everyone. The headline numbers first. Revenue was EUR 10.2 million this quarter, down 40% from the comparison period. EBITDA was EUR -2.4 million and EBIT EUR -3.9 million. Operating cash flow slightly negative at EUR -0.7 million. Two main factors explain this quarter's performance. First, the comparison quarter included the launch of FBC: Firebreak with its initial subscription accruals. Second, marketing for Control Resonant ramped up during the quarter, reducing profitability as anticipated. Let's talk about this quarter was all about Control Resonant, launches worldwide on 24 September. We can now finally speak about the date. This is Remedy developing and self-publishing the sequel to Control, our own IP, our own voice, and our most ambitious release to date. We revealed the launch date with a trailer shown at State of Play in June. Let's look at it again now.

Speaker #2: EBITDA was minus €2.4 million, and EBIT minus €3.9 million. Operating cash flow was slightly negative at minus €0.7 million. Two main factors explain this quarter's performance. First, the comparison quarter included the launch of FBC Firebreak with its initial subscription accruals.

Speaker #2: Second, marketing for Control Resonance ramped up during the quarter, reducing profitability as anticipated. So let's talk about this quarter; it was all about Control Resonance.

Speaker #2: Launch is worldwide on September 24. We can now finally speak about the date. So this is Remedy developing and self-publishing the sequel to Control, our own IP, our own voice, and our most ambitious release to date.

Speaker #2: We revealed the launch date with a trailer shown at State of Play in June. Let's look at it again now.

Speaker #3: Something is coming. I have to go. It felt like an earthquake, but it was just a paperclip falling off a desk. The tiniest tremor before the main event.

[Company Representative] (Remedy): Something is coming. I have to go. It felt like an earthquake. But it was just a paperclip falling off a desk. The tiniest tremor before the main event. I know what they put you through. You never had a chance. Two days before the lockdown fell, an uncategorized resonance appeared in Manhattan. As things stand right now, Dylan, you're our only shot at survival.

[Video Narrator]: Something is coming. I have to go. It felt like an earthquake. But it was just a paperclip falling off a desk. The tiniest tremor before the main event. I know what they put you through. You never had a chance. Two days before the lockdown fell, an uncategorized resonance appeared in Manhattan. As things stand right now, Dylan, you're our only shot at survival.

Speaker #3: I just know what they put you through. You never had a chance.

Speaker #4: Two days before the lockdown fell, an uncategorized resonance appeared in Manhattan. As things stand right now, Dylan, you're our only shot at survival.

Speaker #5: You are not FBC. You're not even fucking human.

[Company Representative] (Remedy): You are not FBC. You're not even fucking human. The FBC locked me in that cell for years and forgot about me. The Hiss, it was a way out.

[Video Narrator]: You are not FBC. You're not even fucking human. The FBC locked me in that cell for years and forgot about me. The Hiss, it was a way out.

Speaker #6: The FBC locked me in that cell for years and forgot about me. But this, it was a way out.

Speaker #4: People can change. The past doesn't matter.

[Company Representative] (Remedy): People can change. The past doesn't matter. Who are you today?

[Video Narrator]: People can change. The past doesn't matter. Who are you today?

Speaker #3: Who are you today?

Speaker #6: No.

Speaker #5: We're going to have a lot of fun together.

[Company Representative] (Remedy): We're gonna have a lot of fun together.

[Video Narrator]: We're gonna have a lot of fun together.

Speaker #1: All right, cool. So we had two trailers that same week—the one we just saw and the second trailer at Summer Game Fest. That lifted our embargo.

Jean-Charles Gaudechon: All right, cool. We had 2 trailers that same week. The one we just saw and the second trailer at Summer Game Fest. That lifted our embargo, then media and content creators went hands-on with a 3-hour build of the game. One thing I want to highlight here, the move to faster kind of melee action, different type of gameplay was the most debated aspect at the announcement, for good reason. It was something new for Remedy, but something we learned with this demo is that this has become one of the most positive feedback we got on the game, which is excellent to see. Alongside, of course, the atmosphere and storytelling that Remedy is very well-known for. So, encouraging as we approach launch. We have an ambitious global campaign for this game.

Speaker #1: Then, media and content creators went hands-on with a three-hour build of the game. One thing I want to highlight here: the move to faster, kind of melee action, a different type of gameplay, was the most debated aspect at the announcement, and for good reason.

Speaker #1: It was something new for Remedy, but something we learned with this demo is that this has become one of the most positive pieces of feedback we got on the game.

Speaker #1: Which is excellent to see, alongside, of course, the atmosphere and storytelling that Remedy is very well known for. It's so encouraging as we approach launch.

Speaker #1: We have an ambitious global campaign for this game. After the trailers were revealed, we ramped up the activity and got members of the team on the road to meet fans and support our hands-on demo.

Jean-Charles Gaudechon: After the trailers were revealed, we ramped up the activity and got members of the team on the road to meet fans and support our hands-on demo. We got 20 billion impressions from that tour so far. Over 1,000 articles were written and 71 content creators engaged worldwide, which at this stage is really good and only the beginning. Just over a week ago, we were at ChinaJoy in Shanghai with a very promising reception from the local audience. We are also listening to live feedback when people play the game, and localization quality, which as I mentioned before, is extremely important for us. Next up, we're in Gamescom in Cologne, where we're gearing up for a great show, including a community event where you're all invited. Our marketing accelerates further in Q3.

Speaker #1: We got 20 billion impressions from that tour so far, over 1,000 articles were written, and 71 content creators engaged worldwide, which at this stage is really good—and only the beginning.

Speaker #1: Just over a week ago, we were at ChinaJoy in Shanghai, with a very promising reception from the local audience. We are also listening to live feedback when people play the game, and focusing on localization quality.

Speaker #1: Which, as I mentioned before, is extremely important for us. Next up, we're at Gamescom in Cologne, where we're gearing up for a great show.

Speaker #1: Including a community event where you're all invited. Our marketing accelerates further in the third quarter. I can't reveal too much for now, but there's a lot to expect leading up to the launch.

Jean-Charles Gaudechon: I can't reveal too much for now, but there's a lot to expect leading up to the launch. We got some great and constructive early coverage, quoting Eurogamer, "How video games should be done," and Polygon, "A bolder sequel than we ever could have expected." We're very grateful for this reception, but we also keep it in perspective. There are previews. These are only previews of an early build, not reviews of the finished game, obviously. Even from that demo, the game has come a long way, so we're very bullish. Interest has matched the sentiment. As of today, we have over 1.5 million wishlists across platforms. Wishlist growth, as you know, typically tracks campaign activity, which will keep intensifying further in Q3, so only bigger numbers to come.

Speaker #1: We got some great and constructive early coverage. Quoting Eurogamer, 'how video games should be done,' and Polygon, 'a bolder sequel,' then we ever could have expected.

Speaker #1: So we're very grateful for this reception, but we also keep it in perspective. These are previews; these are only previews of an early build.

Speaker #1: Not reviews of the finished game, obviously. But even from that demo, the game has come a long way, so we're very bullish. Interest—as much the sentiment.

Speaker #1: As of today, we have over 1.5 million wishlists across platforms. Wishlist growth, as you know, typically tracks campaign activity, which will keep intensifying further in Q3.

Speaker #1: So only bigger numbers to come. During the campaign window in June, our analytics showed that Control Resonance was among the top three most pre-ordered games on PlayStation in the US, Germany, and Brazil.

Jean-Charles Gaudechon: During the campaign window in June, our analytics showed that Control Resonant was among the top 3 most pre-ordered games on PlayStation in the US, Germany, and Brazil. Chinese-speaking markets are our second-largest market in Steam unit pre-orders. We are seeing strength in both our traditional and growth markets. There's been a lot of talks around a very busy launch window and for good reasons. There are a lot of great games coming in September. The first priority for us has always been to ship an outstanding game and a very unique experience that we believe has a real chance to stand out. The following factors also give us confidence. We're day one on all major platforms, which is a first for Remedy.

Speaker #1: And Chinese-speaking markets are the second largest market on Steam in unit pre-orders. So we are seeing strength in both our traditional and growth markets. There has been a lot of talk around a very busy launch window.

Speaker #1: And for good reasons. There are a lot of great games coming in September. But the first priority for us, as always, has been to ship an outstanding game.

Speaker #1: And a very unique experience that we believe has a real chance to stand out. The following factors also give us confidence. We're day one on all major platforms, which is a first for Remedy.

Speaker #1: And this is our most localized product ever, which I believe I mentioned before. This matters tremendously in order to reach new markets and grow our audience.

Jean-Charles Gaudechon: This is our most localized product ever, which I believe I mentioned before, which matters tremendously in order to reach new markets and grow our audience. Also, the price point, EUR 59.99 for the standard edition. This is basically AAA quality at an attractive price against comparable titles in autumn. We made the conscious decision to keep this product priced attractively. Overall, I just don't think there's such things as a perfect window these days. There are amazing games coming out all through the year. I think the real differentiators today is quality and uniqueness, where we're pushing really strongly on Control Resonant. That's it for Control Resonant. Let's look at our games in the market. Alan Wake 2 passed 3 million lifetime copies sold during the second quarter. Consumer sales continue at an expected pace, and royalties in Q2 were generated entirely from consumer sales.

Speaker #1: Also, the price point: $59.99 for the standard edition. This is basically AAA quality at an attractive price, against comparable titles in autumn. We made the conscious decision to keep this product priced attractively.

Speaker #1: Overall, I just don't think there's such a thing as a perfect window these days. There are amazing games coming out all through the year. I think the real differentiators today are quality and uniqueness.

Speaker #1: We're pushing really strongly on Control resonance. So that's it for Control resonance. Let's look at our games in the market. Alan Wake 2 passed 3 million lifetime copies.

Speaker #1: Sold during the second quarter. Consumer sales continue at an expected pace, and royalties in Q2 were generated entirely from consumer sales. No platform deal accruals this quarter.

Jean-Charles Gaudechon: No platform deal accruals this quarter. Control is a good example of the power of franchises, which is extremely important for me. In its seventh year on the market, Control grew year-on-year in Q2. Over 6 million copies sold, more than 20 million lifetime players. The Control Resonant campaign is renewing interest in the original game, and Control remains the entry point into the franchise for new fans. On FBC: Firebreak, unfortunately, this is the main driver of the year-on-year decline in game sales and royalties, because as mentioned previously, the comparison quarter contained its launch and the initial accruals that came with it. This quarter, most of Firebreak sales were revenue accruals from our subscription service agreements, and the game continues to be available on Xbox Game Pass and PlayStation Plus.

Speaker #1: Control is a good example of the power of franchises, which is extremely important for me. In its seventh year on the market, Control grew year-on-year in Q2.

Speaker #1: Over 6 million copies sold. More than 20 million lifetime players. The Control Resonance campaign is renewing interest in the original game. And Control remains the entry point into the franchise for new fans.

Speaker #1: On FBC Firebreak, unfortunately, this is the main driver of the year-on-year decline in game sales and royalties because, as mentioned previously, the comparison quarter contained its launch and the initial accruals that came with it.

Speaker #1: This quarter, most of Firebreak sales were revenue accruals from our subscription service agreements. The game continues to be available on Xbox Game Pass and PlayStation Plus.

Speaker #1: Naturally, all eyes are on Control and Alan Wake, but it's important to remember that we are a multi-project studio. The Max Payne 1 and 2 remake remains in full production with Rockstar Games.

Jean-Charles Gaudechon: Naturally, all eyes are on Control Resonant, but it is important to remember that we are a multi-project studio. Max Payne 1 and 2 remake remains in full production with Rockstar Games, and our new project moved to production readiness, the next stage gate on our development framework. With that, over to Santtu for the financials.

Speaker #1: And our new project moved to production readiness, the next stage gate in our development framework. And with that, over to Sen2 for the financials.

Speaker #2: Thank you, JC, and good afternoon. Before jumping into the financials, let's start by discussing the reporting logic. As this is now the first time we are receiving pre-orders as a self-publisher, it's good to walk through how these are shown in our P&L and balance sheet.

Santtu Kallionpää: Thank you, JC, and good afternoon. Before jumping into financials, let us start with discussing the reporting logic. As this is now first time when we are receiving pre-orders as a self-publisher, it is good to walk through how these are shown in our P&L and balance sheet. Before the game launch, pre-orders are not recognized as revenue, as based on IFRS, sales can not be accrued before the performance obligation has been fulfilled. In our case, this means delivering the game to the players. Based on this, on the launch date, all pre-order revenue is recognized, and at the same time, also related platform fees and royalties are accrued as costs. After that, accruing sales and the related partner expenses will happen on continuous basis. On balance sheet, pre-orders are shown in advances received only if we have received payments from the platforms before the game launch.

Speaker #2: So before the game launch, pre-orders are not recognized as revenue, as based on IFRS. Sales can't be accrued before the performance obligation has been fulfilled.

Speaker #2: In our case, this means delivering the game to the players. Based on this, on the launch date, all pre-order revenue is recognized. At the same time, the related platform fees and royalties are also accrued as costs.

Speaker #2: After that, accruing sales and the related partner expenses will happen on a continuous basis. On the balance sheet, pre-orders are shown in advances received only if we have received payments from the platforms before the game launch.

Speaker #2: As there is usually at least a one-month delay in receiving the payments, there are no cash flow impacts from pre-orders in our Q2 reported figures.

Santtu Kallionpää: As there is usually at least one month delay in receiving the payments, there are no cash flow impacts from pre-orders in our Q2 reported figures. After the game launch, reported sales will be shown in trade receivables or in cash, depending on if the actual payment from platform to us has taken place. As said, there is usually at least one month delay with the actual payment related to sales, and this also varies depending on the platform. On outgoing cash side, it is good to note we are paying contract-based royalties to our partner with delay after first receiving the cash ourselves. Let us move on to actual figures of our second quarter report and start with the revenue. Our Q2 2026 revenue was EUR 10.2 million, decrease from the previous year was 40%.

Speaker #2: After the game launch, reported sales will be shown in trade receivables or in cash, depending on whether the actual payment from the platform to us has taken place.

Speaker #2: And as said, there is usually at least a one-month delay with the actual payment related to sales, and this also varies depending on the platform.

Speaker #2: On the outgoing cash side, it's good to note we are paying contract-based royalties to our partner with a delay, after first receiving the cash ourselves. Then let's move on to the actual figures of our second quarter report.

Speaker #2: And starting with the revenue: our second quarter 2026 revenue was $10.2 million, a decrease of 40% from the previous year. The decline in revenue was mainly from the game sales and royalties side.

Santtu Kallionpää: The decline in revenue was mainly from the game sales and royalties side. The main factor for the decrease was the initial revenue across from FBC: Firebreak's subscription service agreements that were linked to the release of the game in the comparison period last year. In Q2 2026, Control, FBC: Firebreak, and Alan Wake 2 were the main drivers of game sales and royalties revenue. Looking at the development fees, those also decreased from the comparison period. The development fees were from Max Payne 1 and 2 remake and Control Resonant. In this quarter, the exchange rates did not have a big impact on the revenue level. Looking a longer period, we can see revenue variations from quarter to quarter. The amount of development fees is based on accurate development milestones. In Q2 2026, those were on a lower level than during the last couple of quarters.

Speaker #2: The main factor for the decrease was the initial revenue accruals from FBC Firebreak’s subscription service agreements that were linked to the release of the game in the comparison period last year.

Speaker #2: In Q2 2026, Control, FBC Firebreak, and Alan Wake 2 were the main drivers of game sales and royalties revenue. Looking at the development fees, those also decreased from the comparison period.

Speaker #2: The development fees were from the Max Payne 1 and 2 remake and Control Resonance. In this quarter, the exchange rates didn't have a big impact on the revenue level.

Speaker #2: Then, looking at a longer period, we can see revenue variations from quarter to quarter. The amount of development fees is based on accrued development milestones.

Speaker #2: In Q2 2026, those were at a lower level than during the last couple of quarters. In a longer perspective, we can see the effects of the self-publishing strategy.

Santtu Kallionpää: In a longer perspective, we can see the effects of the self-publishing strategy. The game sales and royalties have been on a higher level since the beginning of 2025 as our own published games generate meaningful game sales. FBC: Firebreak continues to be available in the gaming services. However, the game is already one year old, and we have not had new game launches since then, which explains the decline in game sales. Control Resonant pre-orders are not included in the Q2 figures, as we can't accrue these sales before the game is available to the gamers. Moving on to profitability. The operating profit was -3.9 million EUR in Q2 2026, which was 3.5 million EUR less than in the comparison period. EBITDA was at -2.4 million EUR and on a lower level than in the comparison period.

Speaker #2: Game sales and royalties have been at a higher level since the beginning of 2025, as our own published games generate meaningful sales.

Speaker #2: FBC Firebreak continues to be available in the gaming services. However, the game is already one year old, and we have not had new game launches since then, which explains the decline in game sales.

Speaker #2: And as said, Control: Resonance pre-orders are not included in the Q2 figures, as we can't accrue these sales before the game is available to gamers.

Speaker #2: Then, moving on to profitability. The operating profit was minus €3.9 million in Q2 2026, which was €3.5 million less than in the comparison period.

Speaker #2: EBITDA was at minus €2.4 million and on a lower level than in the comparison period. Our other operating expenses increased from a year ago as we ramped up our marketing efforts for Control Resonance.

Santtu Kallionpää: Our other operating expenses increased from a year ago as we ramped up our marketing efforts for Control Resonant. As we head to the Q3 and the game launch approaches, the marketing expenses are expected to grow even more. Overall, the profitability was largely affected by the revenue decrease in Q2 2026, driven by lower level in game session royalties and also partly in development fees. Let's dive in our costs in more detail. Gross external development and personal expenses in total decreased by 8.5% from 12.6 million EUR in Q2 2025 to 11.6 million EUR in Q2 2026. Following the year-on-year trend and the external development needs in the game projects, the external work expenses were at 2.6 million EUR, being clearly lower than a year ago. We have been able to complete more required external development in-house than before.

Speaker #2: As we head into the third quarter and the game launch approaches, marketing expenses are expected to grow even more. Overall, profitability was largely affected by the revenue decrease in Q2 2026, driven by lower levels of in-game sales and royalties, and also partly in development fees.

Speaker #2: Then let's dive into our costs in more detail. Gross external development and personnel expenses in total decreased by 8.5%, from €12.6 million in Q2 2025 to €11.6 million in Q2 2026.

Speaker #2: Following the year-on-year trend and the external development needs, in the game projects, the external work expenses were at €2.6 million, being clearly lower than a year ago.

Speaker #2: We have been able to complete more required external development in-house than before. Personnel expenses increased by 7.3% and were €9 million in Q2 2026.

Santtu Kallionpää: Personal expenses increased by 7.3% and were 9 million EUR in Q2 2026. The increase was mainly due to general increase in salary levels and additional efforts put towards the game launch. The capitalized development expenses were 3.7 million EUR in Q2 2026. The amount of capitalization is higher than in the previous quarters, mainly due to the increased development efforts put into Control Resonant. Depreciation in total, it was 1.6 million EUR and was on a lower level in Q2 2026 than during the previous quarters. 0.9 million EUR of the total depreciation was related to game projects. This included Alan Wake 2 and FBC: Firebreak depreciations. Depreciation closely followed the level of game sales of the games which we are depreciating. Depreciation of Control Resonant will start when the game has launched.

Speaker #2: The increase was mainly due to a general increase in salary levels and additional efforts put towards the game launch. The capitalized development expenses were €3.7 million in Q2 2026.

Speaker #2: The amount of capitalization is higher than in the previous quarters, mainly due to the increased development efforts put into Control Resonance. Then, depreciation in total was €1.6 million.

Speaker #2: And we're on a lower level in Q2 2026 than—sorry, it was on a lower level in Q2 2026 than during the previous quarters. €0.9 million of the total depreciation was related to the game projects.

Speaker #2: This included Alan Wake 2 and FBC Firebreak depreciations. Depreciation closely followed the level of game sales of the games which we are depreciating. Depreciation of Control Resonance will start when the game has launched.

Speaker #2: And other depreciations have stayed at a similar level from quarter to quarter. At the end of June 2026, our total cash level was €29.6 million, including €9.6 million in cash and €20 million in short-term cash management investments.

Santtu Kallionpää: Other depreciations, they have stayed on a similar level from quarter to quarter. At the end of June 2026, our total cash level was 29.6 million EUR, including 9.6 million EUR in cash and 20 million EUR in short-term cash management investments. Cash flow from operations was -0.7 million EUR. The main driver for the negative operating cash flow was the period's low revenue level. Cash flow from investments at -3.8 million EUR had the biggest impact on the period end cash position as the investments in our capitalized development projects, mainly in Control Resonant, increased. Cash flow from financing included the IFRS lease liability payments, and it was on a similar level as in previous quarters. Net cash flow in the H1 2026 has been -0.1 million EUR, including 7 million EUR investments offset by positive operating cash flow.

Speaker #2: Cash flow from operations was negative €0.7 million. The main driver for the negative operating cash flow was the period's slow revenue level. Cash flow from investments at minus €3.8 million had the biggest impact on the period-end cash position, as the investments in our capitalized development projects, mainly in Control and Condor, increased.

Speaker #2: Cash flow from financing included the IFRS lease liability payments, and it was at a similar level as in previous quarters. Net cash flow in the first half of 2026 has been minus €0.1 million, including €7 million in investments offset by positive operating cash flow.

Speaker #2: So, looking at the year-to-date revenue from the first half of the year, it was €23.3 million. This is €7 million less than the first half of 2025, as we had Firebreak launching in the second quarter of 2025.

Santtu Kallionpää: Looking at the year-to-date revenue from the H1 of the year, it was EUR 23.3 million. This is EUR 7 million less than the H1 of 2025, as we had FBC: Firebreak launching in Q2 2025. In the H1 of 2026, we started investing more in marketing. At the same time, we have kept on working on our cost structure, and we have managed to decrease our outsourcing expenses. Ahead of the new game launch, our profitability declined from a year ago, with EBITDA being in the H1 of the year +2.3% and EBIT -12.5%. This year's profitability in overall will be defined by the sales of Control Resonant. Jean-Charles will continue with outlook.

Speaker #2: In the first half of 2026, we started investing more in marketing. At the same time, we have continued working on our cost structure.

Speaker #2: And we have managed to decrease our outsourcing expenses. Ahead of the new game launch, our profitability declined from a year ago, with EBITDA in the first half of the year being 2.3% positive.

Speaker #2: And EBIT was negative 12.5%. This year's overall profitability will be defined by the sales of Control and Alan Wake. And now, JC will continue with the outlook.

Speaker #1: Thank you, Centu. So, our outlook is for the year. Thank you. Our full-year outlook is unchanged. We expect revenue and EBITDA to increase from the previous year.

Jean-Charles Gaudechon: Thank you, Santtu. Our outlook is for the year. Thank you. Our full year outlook is unchanged. We expect revenue and EBITDA to increase from the previous year.

Speaker #2: All right, so let's head to the Q&A session next. Any questions you have, leave those in the text box below the webcast. We already have a couple of good questions in the pipeline.

Santtu Kallionpää: All right, let's head to the Q&A session next. Any questions you have, leave those in the text box below the webcast. We already have a couple of good questions in the pipeline, so let's dig in with those. A bulk of the questions are in relation to Control Resonant first, and let's start with the commercial indicators. After disclosing more than 1.5 million wish lists, what can you tell us about the conversions in the pre-orders?

Aapo Kilpinen: All right, let's head to the Q&A session next. Any questions you have, leave those in the text box below the webcast. We already have a couple of good questions in the pipeline, so let's dig in with those. A bulk of the questions are in relation to Control Resonant first, and let's start with the commercial indicators. After disclosing more than 1.5 million wish lists, what can you tell us about the conversions in the pre-orders?

Speaker #2: So, let's begin with those. A bulk of the questions are in relation to Control Resonance first. Let's start with the commercial indicators. After disclosing more than 1.5 million wishlists, what can you tell us about the conversions and the pre-orders?

Speaker #1: Yeah, okay. So first, 1.5 million wish list is an achievement. We're very happy about where we stand, and we're pretty much on track with what we were planning.

Jean-Charles Gaudechon: Yeah. Okay. First, 1.5 million wish list is an achievement. We are very happy about where we stand. We are pretty much on track with what we were planning. That is actually great news. When it comes to conversion, of course, it really depends. We have seen games actually with a lot of wish lists not converting as well. We have also seen some games which were not as focused on wish listing that did really well. This is not science. The one thing we control today is to push that number as high as we can.

Speaker #1: So that's actually great news. When it comes to conversion, of course, it really depends. We've seen games, actually, with a lot of wishlists not converting as well.

Speaker #1: We've also seen some games which weren't as focused on wishlisting that did really well. So this is not science. The one thing we control today is to push that number as high as we can.

Speaker #1: And, of course, one thing that is really positive for a game like Control: Resonance is that it's the sequel of a well-established franchise, which obviously has a nucleus of players—fans that are here and we hope will be here day one.

Jean-Charles Gaudechon: And of course, one thing that is really positive for a game like Control Resonant, it's the sequel of a well-established franchise which obviously has a nucleus of players, of fans that are here and we hope will be here day one, and that is conversion, but also all the work that the team is doing today to expand our global audience and make that a day one purchase. Obviously, we can expect through healthy level of conversions.

Speaker #1: And that is conversion, but also all the work that the team is doing today to expand our global audience and make that a day one purchase.

Speaker #1: Obviously, we can expect a healthy level of conversions.

Speaker #2: Very good. And then, looking at the conversions, are the pre-orders running ahead of, in line with, or behind your internal plans?

[Company Representative] (Remedy): Very good. And then looking at the conversions, are the pre-orders running ahead or in line or behind your internal plans?

Aapo Kilpinen: Very good. And then looking at the conversions, are the pre-orders running ahead or in line or behind your internal plans?

Speaker #1: Pre-orders are positive also. As I mentioned in the slides, we're very happy about being in the top pre-orders in the kind of window that we released that or did that announcement.

Jean-Charles Gaudechon: Pre-orders are positive also. As I mentioned in the slides, we're very happy about being in top pre-orders in the kind of window that we released that or did that announcement. So, so far, very happy, very bullish on pre-orders. Of course, we don't have internal as easy numbers to compare, but what I can say is that it's tracking ahead of some of our previous games, which is very healthy again on the pre-order front.

Speaker #1: So far, very happy, very bullish on pre-orders. Of course, we don't have internal as-easy numbers to compare. But what I can say is that it's tracking ahead of some of our previous games, which is very healthy, again, on the pre-order front.

Speaker #2: Very good. And then, on the wish list number, is the figure accumulative or net of cancellations?

[Company Representative] (Remedy): Very good. And then on the wish list number, is the figure cumulative or net of cancellations?

Aapo Kilpinen: Very good. And then on the wish list number, is the figure cumulative or net of cancellations?

Speaker #1: Yes, so it is net of cancellations. So it's actually a true number. We've removed people that decided to pull out. So that's basically—yeah, I could say here, that is an absolute true number.

Jean-Charles Gaudechon: Yeah. So it is net of cancellations. So it is actually a true number. We have actually removed people that decided to pull out. So that is basically, I could say here that is an absolute true number. And yes, it is cumulative, but of course, removing these people. One thing I wanted to mention also, both for pre-orders and wish list, it is still early, and most of these numbers accelerate much further as we get closer to launch. So we are, again, tracking well.

Speaker #1: And yes, it is cumulative. But of course, removing these people—one thing I wanted to mention also, both for pre-orders and wish lists, it's still early.

Speaker #1: And most of these numbers accelerate much further as we get closer to launch, so we're again tracking well.

Speaker #2: Very good. Is there something you want to communicate about the split between platforms and the pre-orders?

[Company Representative] (Remedy): Very good. Is there something you want to communicate for the split between platforms and the pre-orders?

Aapo Kilpinen: Very good. Is there something you want to communicate for the split between platforms and the pre-orders?

Speaker #1: So, I can't give precise numbers on the split. What I can say is, it's strong on all platforms.

Jean-Charles Gaudechon: I cannot give precise numbers on the split. What I can say is it is strong on all platforms.

Speaker #2: Very good. Excellent. Then, heading to China next: how has Control Resonance been received in the Chinese market, or the Chinese-speaking market? And what are your expectations for that market?

[Company Representative] (Remedy): Very good. Excellent. Then heading to China next, how has Control Resonant been received in the Chinese market or the Chinese-speaking market, and what are your expectations for that market?

Aapo Kilpinen: Very good. Excellent. Then heading to China next, how has Control Resonant been received in the Chinese market or the Chinese-speaking market, and what are your expectations for that market?

Speaker #1: So indeed, and I've said it before, China is a priority for us along all our core markets. And the reason for that, by the way, is our data has shown that Control has done really well in China.

Jean-Charles Gaudechon: Indeed, as stated before, China is a priority for us along all our core market. The reason for that, by the way, is our data has shown that Control has done really well in China. This is a franchise that resonates well in China, which is also why this is grounded in reality. This is not kind of a shot in the dark. Also why we were at ChinaJoy, just a bit more than a week ago, and we had actually a great show allowing people, actually fans, press, content creators to play the game. The game has been really well-received so far. As I said, it is extremely important for us to really feel how the game resonates locally, and also the quality of localization since as you know, for Chinese, we also have VO. So we are being very close to feedback from local audience.

Speaker #1: This is a franchise that resonates well in China, which is also why this is grounded in reality. This is not kind of a shot in the dark.

Speaker #1: And also why we were at ChinaJoy just a bit more than a week ago. And we actually had a great show, allowing people—actually, fans, press, and content creators—to play the game.

Speaker #1: And the game has been really well received so far. So, and as I said, it's extremely important for us to really feel how the game resonates locally.

Speaker #1: And also the quality of localization, since as you know, for Chinese we also have VO. So we're being very close to feedback from the local audience.

Speaker #2: Very good. Then next, maybe the sound to—how does your niche, or how does your share of net sales with Annapurna, change once the production and marketing investment is recouped?

[Company Representative] (Remedy): Very good. Next, maybe this on to how does your share of net sales with Annapurna change once the production and marketing investment is recouped?

Aapo Kilpinen: Very good. Next, maybe this on to how does your share of net sales with Annapurna change once the production and marketing investment is recouped?

Speaker #1: Yeah.

Santtu Kallionpää: Yeah. First of all, when the recouping the investment is happening, it is happening in relation of the investments made. After the investment has been recouped, Remedy will receive a greater share of the net sales of Control Resonant.

Speaker #2: First of all, when the recouping of the investments is happening, it's happening in relation to the investments made. And after the investment has been recouped, then Remedy will receive a greater share of the net sales of Control: Resonance.

Speaker #2: Very good. Then, on the marketing spend, we said that the marketing will accelerate further in the third quarter. But will Q3 marketing spend for Control Resonance exceed Q1 and Q2 combined?

[Company Representative] (Remedy): Very good. On the marketing spend, we said that the marketing will accelerate further in Q3, but will Q3 marketing spend for Control Resonant exceed Q1 and Q2 combined, Santtu?

Aapo Kilpinen: Very good. On the marketing spend, we said that the marketing will accelerate further in Q3, but will Q3 marketing spend for Control Resonant exceed Q1 and Q2 combined, Santtu?

Santtu Kallionpää: Yeah. I think it is a good assumption that the kind of peak of the marketing cost and the investments made, it will happen around the launch window. I will not give an exact guidance for Q3, but I can say that the H2 of the year, it is greater in marketing costs than the H1 of the year.

Speaker #2: I think it's a good assumption that the peak of the marketing cost and the investments made will happen around the launch window.

Speaker #2: I will not give an exact guidance for Q3, but I can say that the second half of the year is greater in marketing costs than the first half of the year.

Speaker #1: Gotcha.

[Company Representative] (Remedy): Got you. The next one is, what is the total budget for Control Resonant? I mean, it is in line with our AAA budget. Is there something you want to add on that?

Aapo Kilpinen: Got you. The next one is, what is the total budget for Control Resonant? I mean, it is in line with our AAA budget. Is there something you want to add on that?

Speaker #2: Then the next one is: what is the total budget for Control Resonance? I mean, it's in line with our AAA budget. Is there something you want to add on that?

Speaker #1: Well, I can say that, as you said, it's our AAA game. Which, anyway, I think Remedy can make in a much more affordable way compared to many companies around the world.

Santtu Kallionpää: Well, I can say that, as you said, it is a AAA game, which anyway, I think Remedy can make much more affordable way compared to many companies around the world.

Speaker #2: Right. Excellent. I think those were the questions for Control resonance as of the moment. But let's continue with the Control franchise. Sound also, Control grew in comparison to the comparison period.

[Company Representative] (Remedy): Right. Excellent. I think those were the questions for Control Resonant as of moment, but let us continue with the Control franchise. Santtu, also Control grew in comparison to the comparison period. Was this in copies revenue or both?

Aapo Kilpinen: Right. Excellent. I think those were the questions for Control Resonant as of moment, but let us continue with the Control franchise. Santtu, also Control grew in comparison to the comparison period. Was this in copies revenue or both?

Speaker #2: Was this in copies revenue or both?

Speaker #1: I would say it's in both. As currently, of course, the discounts are quite deep, so we get a lot of copies sold. But also in sales, we are getting good traction with Control.

Santtu Kallionpää: I would say it's in both. As currently, of course, the discounts are quite deep, so we get a lot of copies sold, but also in sales, we are getting good traction with Control.

Speaker #2: Excellent. Then, heading to a bit more general questions next. JC, the third new project is moving with a solid pace in the development pipeline.

[Company Representative] (Remedy): Excellent. Then heading to a bit more general questions next. JC, the third new project is moving with a solid pace in the development pipeline and a bit faster than the previous games. What are the key drivers behind us accelerating the pace with the new project?

Aapo Kilpinen: Excellent. Then heading to a bit more general questions next. JC, the third new project is moving with a solid pace in the development pipeline and a bit faster than the previous games. What are the key drivers behind us accelerating the pace with the new project?

Speaker #2: And a bit faster than the previous games. What are the key drivers behind us accelerating the pace with the new project?

Speaker #1: Yeah, that's a good question. I'm happy there's actually focus on other projects and how we develop games, because obviously at Remedy we always strive to improve.

Jean-Charles Gaudechon: Yeah. That's a good question. I'm happy there's actually focus on other projects and how we develop games because obviously, at Remedy, we always thrive to improve on how we make games. It was a priority for me when I joined Remedy, so it's indeed progressing well. I would say the main factors for this is a team that is well-staffed early. It's a project that is well managed and well planned, which allows us to basically be on time, on quality for each of the milestones, development milestones. Always keeping quality product at the center of it. So I am, and we're not interested in just getting through the gates just for the sake of it. It has to be a great game that we're building every step of the way.

Speaker #1: On how we make games, and it was a priority for me when I joined Remedy. So it's indeed progressing well. I would say the main factor for this is a team that is well-staffed.

Speaker #1: Early. It’s a project that is well managed and well planned, which allows us to basically be on time and on quality for each of the milestones.

Speaker #1: Development milestones always, always keep quality product at the center of it. So I am, and we're not interested in just getting through the gates just for the sake of it.

Speaker #1: It has to be a great game that we're building every step of the way, and that's—yeah. So I just want to put it out there that yes, it is.

Jean-Charles Gaudechon: I just want to put it out there that yes, it is, and it's actually progressing well, both on time and on quality.

Speaker #1: And it's actually progressing well, both on time and in terms of quality.

Speaker #2: Very good. Then, sounding to extending on the marketing budget— is the budget fixed, or is there a potential to increase it if the reception is good enough?

[Company Representative] (Remedy): Very good. Sampo, expanding on the marketing budget, is the budget fixed or is there potential to increase it if the reception is good enough?

Aapo Kilpinen: Very good. Sampo, expanding on the marketing budget, is the budget fixed or is there potential to increase it if the reception is good enough?

Speaker #1: Yeah. We have a certain base marketing plan which we follow. But, of course, when marketing this kind of game, there needs to be room to also react depending on how we see things are working out.

Santtu Kallionpää: Yeah. We have certain base marketing plan which we follow, but of course, when marketing this kind of game, there needs to be room to take also reaction, depending on how we see things are working out. Yes, it's a flexible budget also.

Speaker #1: So yes, it's a flexible budget, also.

Speaker #2: Very good. Then, heading to more general questions with JC. Will you port your older titles to mobile phones?

[Company Representative] (Remedy): Very good. Heading to more general questions with JC, will you port your older titles to mobile phones?

Aapo Kilpinen: Very good. Heading to more general questions with JC, will you port your older titles to mobile phones?

Jean-Charles Gaudechon: Early to say. We're very happy about the quality of Control on mobile, which was released not long ago. That's actually a great proof of concept, I would say. Too early to say for other games. If there's an opportunity, we're always looking at all new platforms. I see questions around, there's mobile, but there's questions around Switch, too. These are platforms we always keep an eye on, we'll always keep, in the future, looking into. If there's the ability both to do it and to get in the hands of more players, that's going to be a very important focus for Remedy. We talked about growing our global audience, and you do it through marketing, your publishing strategy on a specific game. You also do it by being on more platforms.

Speaker #1: Early to say. We're very happy about the quality of Control on mobile, which was released not long ago. That's actually a great proof of concept, I would say.

Speaker #1: But it's too early to say for other games. But if there's an opportunity, we're always looking at all new platforms. I see questions around, does mobile... but there's also questions around Switch 2.

Speaker #1: And these are platforms we always keep an eye on. We're always keeping the future in mind, looking into them. And if there's the ability both to do it and to get in the hands of more players, that's going to be a very, very important focus for Remedy.

Speaker #1: We talked about growing our global audience, and you do it through marketing and your publishing strategy. On a specific game, you also do it by being on more platforms.

Speaker #1: So we’ll absolutely be looking at moving to more platforms, be it mobile, console, or others.

Jean-Charles Gaudechon: We'll absolutely be looking at moving to more platforms, be it mobile, console, or others.

Speaker #2: Excellent. Then looking more at the development pipeline again, are you exploring live service games in the future?

[Company Representative] (Remedy): Excellent. Looking more to the development pipeline again, are you exploring live service games in the future?

Aapo Kilpinen: Excellent. Looking more to the development pipeline again, are you exploring live service games in the future?

Speaker #1: Not a focus today. There's been, of course, experience now in the studio with the different projects that were done in the past. Today, and I think I said it in my first earnings call—and I said it again—we need to be extremely strong at the core.

Jean-Charles Gaudechon: Not a focus today. Of course, there's experience now in the studio with the different projects that were done in the past. Today, and I think I said it in my first earnings call, and I said it again, we need to be extremely strong at the core, and we need to defend the core of what makes Remedy great. Today, what makes Remedy great is incredible, super creative, high-quality single-player experiences. I'm not going to move away from this until this is in an excellent place. If there is a good reason to look at a live service model, then we'll start looking at it. I'll repeat today, this is not a priority.

Speaker #1: And we need to defend the core of what makes Remedy great. And today, what makes Remedy great is incredible, super-creative, high-quality single-player experiences.

Speaker #1: I'm not going to move away from this until this is in an excellent place. If there is a good reason to look at a live service model, then we'll start looking at it.

Speaker #1: But I'll repeat: today, this is not a priority.

Speaker #2: Very good. And then on the new project that is now in production readiness, can you comment on whether you're in the process of looking for financing and publishing partners, or is it self-published?

[Company Representative] (Remedy): Very good. On the new project that is now in production readiness, can you comment on whether you're in the process of looking for financing and publishing partners or is it self-published?

Aapo Kilpinen: Very good. On the new project that is now in production readiness, can you comment on whether you're in the process of looking for financing and publishing partners or is it self-published?

Speaker #1: It's too early to say. Today, our priority, of course, is to self-publish our own games.

Jean-Charles Gaudechon: It's too early to say. Today, our priority, of course, is to self-publish our own games.

Speaker #2: Very good. And then, I suppose, going to the transmedia opportunities, have you considered expanding the Remedy Connected Universe beyond games? For example, transmedia or films?

[Company Representative] (Remedy): Very good. I suppose, going to the transmedia opportunities, have you considered expanding Remedy Connected Universe beyond games, for example, transmedia or films?

Aapo Kilpinen: Very good. I suppose, going to the transmedia opportunities, have you considered expanding Remedy Connected Universe beyond games, for example, transmedia or films?

Speaker #1: Absolutely. And if you actually dig a little bit, you see that we've already made some moves in this space. And yes, transmedia, for such a story-rich studio that we are.

Jean-Charles Gaudechon: Absolutely. If you actually dig a little bit, you see that we've already made some moves in this space. Yes, transmedia for such a story-rich studio that we are and story-rich franchises, it would be an enormous waste not to invest into the Remedy Connected Universe. Actually, that's something to me, I'm very bullish on. Yes, absolutely. One, the transmedia strategy is central to Remedy, and two, the RCU is central to Remedy's future.

Speaker #1: And story-rich franchises. It would be an enormous waste not to invest in the Remedy Connected Universe. And actually, that's something I'm very bullish on.

Speaker #1: So yes, absolutely. One, the transmedia strategy is central to Remedy. And two, the RCU is central to Remedy's future.

Speaker #2: Very good. Then, on the long tail of Control, Resonant, are you exploring DLC options for Control: Resonant?

[Company Representative] (Remedy): Very good. Then on the long tail of Control Resonant, are you exploring DLC options for Control Resonant?

Aapo Kilpinen: Very good. Then on the long tail of Control Resonant, are you exploring DLC options for Control Resonant?

Speaker #1: So let's see how the game lands. I am not the type to have a manifest destiny approach. But if the way we plan, it's going to be a great product.

Jean-Charles Gaudechon: Let's see how the game lands. I am not the type of going have a manifest destiny approach. If the way we plan, it's going to be a great product and it's going to land well, we will absolutely be looking into content updates. If we can give more to happy players, we will do so.

Speaker #1: And it's on a launch, it's going to land well. We will absolutely be looking into content updates if we can give more to happy players.

Speaker #1: We will do so.

Speaker #2: Excellent. Excellent. And then, I suppose, a last question on the commercial topics of Control Resonant. Are you considering adding additional language supports, like Arabic, or additional localizations?

[Company Representative] (Remedy): Excellent. I suppose a last question on the commercial topics of Control Resonant. Are you considering adding additional language supports like Arabic or additional localization? How do you view localization in general?

Aapo Kilpinen: Excellent. I suppose a last question on the commercial topics of Control Resonant. Are you considering adding additional language supports like Arabic or additional localization? How do you view localization in general?

Speaker #2: How do you view localization in general?

Speaker #1: So, we have heard from wonderful people in MENA, and the fact that—and some of the disappointment that came from not supporting Arabic. Unfortunately, on the dev side, it was a tricky one for us.

Jean-Charles Gaudechon: We have heard wonderful people in MENA, and the fact that, and some of the disappointment that came from not supporting Arabic. Unfortunately, on the dev side, it was a tricky one for us, but we are not forgetting you. I can't give any promises, but as I said to me, as I said earlier, localization is really important and high-quality localization to reach more and new markets. We will be looking into it for sure. Now, I can't say that we will add that to Control Resonant, but Remedy as a whole is something that we need to solve.

Speaker #1: But we are not forgetting you. I can't give any promises, but, as I said, to me—as I said earlier—localization is really important.

Speaker #1: And high-quality localization to reach more and new markets. So we will be looking into it for sure. Now, I can't say that we will add that to Control or Resonant, but for Remedy as a whole, it is something that we need to solve for.

Speaker #2: Understood. Then a question regarding costs: Will outsourced development costs once again increase when the third new project moves closer to production?

[Company Representative] (Remedy): Understood. A question for Sampo on the cost side. Will outsourced development costs once again increase when the third new project moves closer to production?

Aapo Kilpinen: Understood. A question for Sampo on the cost side. Will outsourced development costs once again increase when the third new project moves closer to production?

Speaker #1: Yeah. Outsource development costs, first of all, they of course depend on the needs of the game projects. I would say that there are certain things that it's wise to outsource, as it adds certain flexibility to our internal capacity.

Santtu Kallionpää: Yeah. Outsourced development cost, first of all, they of course depend on the needs of the game projects. I would say that there are certain things that it is wise to do outsourced as it adds certain flexibility to our internal capacity. At the same time, we have been able to develop our ways of working so that we can do more in-house. I would say that we are not expecting any significant increases in the external development costs.

Speaker #1: But at the same time, we have been able to develop our ways of working so that we can do more in-house. So I would say that we are not expecting any significant increases in the external development costs.

Speaker #2: Yeah, very good. Then a bit more general question on the shareholder side. Is there something you want to comment on, Heikki Herlin's company, Maria Torp, acquiring a large share of Remedy shares?

[Company Representative] (Remedy): Yeah. Very good. Then a bit more general question on the shareholder side. Is there something you want to comment on Heikki Herlin's company, Mariatorp, acquiring a large share of Remedy shares?

Aapo Kilpinen: Yeah. Very good. Then a bit more general question on the shareholder side. Is there something you want to comment on Heikki Herlin's company, Mariatorp, acquiring a large share of Remedy shares?

Speaker #1: Well, this is a question for shareholders. But what I can say is that I'm actually very happy to welcome a long-term investor like the Heikki Herlin fund.

Jean-Charles Gaudechon: Well, this is a question for shareholders. What I can say is that I am actually very happy to welcome a long-term investor like Herlin Fund, and I think it is only good news for the strength of our cap table overall shareholder, and it is someone that can bring a lot, I think, to Remedy.

Speaker #1: And I think it's only good news for the strength of our cap table overall. Shareholder, and it's someone that can bring a lot, I think, to Remedy.

Speaker #2: Excellent. There are a lot of questions concerning Max Payne. For that game, Rockstar Games is handling the publishing side, so we cannot comment on those questions.

[Company Representative] (Remedy): Excellent. There is a lot of questions concerning Max Payne. On that game, Rockstar Games is handling the publishing side, so we cannot comment on those questions. Otherwise, we ran out of questions, so thank you, gentlemen, for the great answers. Thank you for the questions. If there are any questions you did not have the chance to ask, feel free to send those over at the email address visible now on the screen. We will be back with the next earnings webcast with our business review for Q3 2026, on 3 November 2026. Until then, bye-bye from us.

Aapo Kilpinen: Excellent. There is a lot of questions concerning Max Payne. On that game, Rockstar Games is handling the publishing side, so we cannot comment on those questions. Otherwise, we ran out of questions, so thank you, gentlemen, for the great answers. Thank you for the questions. If there are any questions you did not have the chance to ask, feel free to send those over at the email address visible now on the screen. We will be back with the next earnings webcast with our business review for Q3 2026, on 3 November 2026. Until then, bye-bye from us.

Speaker #2: But otherwise, we're running out of questions. So, thank you, James, for the great answers, and thank you all for the questions. If there are any questions you did not have the chance to ask, feel free to send those over to the email address visible now on the screen.

Speaker #2: We'll be back with the next earnings webcast with our business review for the third quarter of 2026 on November the 3rd, 2026. Until then, bye-bye from us.

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Q2 2026 Remedy Entertainment Oyj Earnings Call

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