6-K_GRAVITY_First QUARTER 2026 RESULT and Business Update
Rhea-AI Summary
GRAVITY (Nasdaq: GRVY) reported unaudited Q1 2026 results: total revenues KRW 161,878m (US$106.3m), up 42.7% QoQ and 17.8% YoY. Operating profit KRW 30,830m, net profit attributable KRW 29,394m. Cash and short-term instruments: KRW 611,615m. Mobile games drove the revenue increase; cost of revenue also rose due to initial commission payments.
AI-generated analysis. Not financial advice.
Positive
- Total revenue +42.7% QoQ to KRW 161,878m
- Net profit KRW 29,394m, +138.7% QoQ
- Cash balance KRW 611,615m as of Mar 31, 2026
- Mobile revenue +54.1% QoQ to KRW 132,800m
Negative
- Cost of revenue +48.4% QoQ to KRW 110,224m
- Cost of revenue +26.0% YoY, driven by initial commissions
News Market Reaction – GRVY
On the day this news was published, GRVY gained 8.00%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.1% during that session. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $34M to the company's valuation, bringing the market cap to $462.31M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
GRVY is down 2.24% while several peers are positive (e.g., GDEV up 8.39%, PLTK up 2.07%, GCL up 2.68%). Momentum scanner names like GDC (+72.45%) and GAME (+3.97%) also moved up, indicating GRVY’s decline is stock-specific rather than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 13 | Prelim Q4 2025 results | Negative | -0.3% | Preliminary Q4 2025 showed revenue and operating profit declines QoQ and YoY. |
| Aug 08 | Q2 2025 earnings | Neutral | -2.5% | Strong Q2 2025 revenue growth with mobile strength but operating and net profit declines. |
| May 09 | Q1 2025 earnings | Positive | +5.8% | Q1 2025 delivered higher revenues and operating profit QoQ with robust mobile growth. |
| Apr 25 | FY2024 20-F filing | Negative | +1.8% | FY2024 annual report showed sizable revenue but steep YoY declines in profit metrics. |
| Feb 14 | Prelim Q4 2024 results | Neutral | -1.0% | Preliminary Q4 2024 revenue slightly up QoQ but down YoY, with solid full-year revenue. |
Earnings and results headlines often show mixed price follow-through, with both positive and negative reactions and several divergences from the apparent fundamental tone.
Over the last few results cycles, Gravity has combined expanding Ragnarok launches with fluctuating profitability. Q4 2024 and FY2024 preliminaries showed revenue stability but YoY profit pressure, while FY2024 and FY2025 20-F filings highlighted sizable revenue with declining profits. Earnings updates in 2025 featured strong mobile-driven revenue growth but mixed margin trends. The current Q1 2026 release continues the pattern of solid top-line growth and improved operating profit alongside an extensive pipeline of Ragnarok titles across regions and platforms.
Historical Comparison
In past earnings headlines, GRVY moved an average of 0.77%, with mixed reactions to strong Ragnarok-driven revenue. Q1 2026 results fit the pattern of mobile-led growth and shifting profitability.
Results progress from FY2024 profit declines, through FY2025 revenue growth with lower profit, to Q4 2025 prelims and now Q1 2026, which shows stronger revenue and operating profit while expanding the Ragnarok launch pipeline.
Market Pulse Summary
The stock moved +8.0% in the session following this news. A strong positive reaction aligns with Q1 2026 fundamentals, which showed total revenue of KRW 161,878M and operating profit up 163.1% QoQ. Historical earnings moves averaged only 0.77%, so a large gain would exceed prior norms. Investors might weigh the robust Ragnarok pipeline and high liquidity of KRW 611,615M against rising costs, particularly the higher cost of revenue tied to new mobile launches.
Key Terms
international financial reporting standards regulatory
international accounting standards board regulatory
mmorpg technical
mmoarpg technical
jrpg technical
soul-like technical
AI-generated analysis. Not financial advice.
Seoul, Korea , May 08, 2026 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games based in South Korea, today announced its unaudited financial results for the first quarter ended March 31, 2026, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.
FIRST QUARTER 2026 HIGHLIGHTS
- Total revenues were KRW 161,878 million (US
$ 106,254 thousand ), representing a42.7% increase from the fourth quarter ended December 31, 2025 (“QoQ”) and a17.8% increase from the first quarter ended March 31, 2025 (“YoY”).
- Operating profit was KRW 30,830 million (US
$ 20,236 thousand ), representing a163.1% increase QoQ and a24.7% increase YoY.
- Profit before income tax expenses was KRW 38,325 million (US
$ 25,155 thousand ), representing a131.2% increase QoQ and a34.7% increase YoY.
- Net profit attributable to parent company was KRW 29,394 million (US
$ 19,294 thousand ), representing a138.7% increase QoQ and a33.4% increase YoY.
REVIEW OF FIRST QUARTER 2026 FINANCIAL RESULTS
Revenues
Online game revenues for the first quarter of 2026 were KRW 25,906 million (US
Mobile game revenues were KRW 132,800 million (US
Other revenues were KRW 3,172 million (US
Cost of Revenue
Cost of revenue was KRW 110,224 million (US
Operating Expenses
Operating expenses were KRW 20,824 million (US
Profit Before Income Tax Expense
Profit before income tax expense was KRW 38,325 million (US
Net Profit
As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 29,394 million (US
Liquidity
The balance of cash and cash equivalents and short-term financial instruments was KRW 611,615 million (US
Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,523.50 to US
GRAVITY BUSINESS UPDATES
Ragnarok Online IP-based Games
- Ragnarok Online 3, an MMORPG Mobile and PC game
Ragnarok Online 3 plans to be launched in China in the first quarter of 2027 and is underway for its launch in Global within 2027.
- Ragnarok M: Classic, an MMORPG Mobile and PC game
Ragnarok M: Classic will be launched in Korea in July 2026.
- Ragnarok: The New World, an MMORPG Mobile and PC game
Ragnarok: The New World will be launched in Southeast Asia (except Vietnam) in July 2026, and Global (except Southeast Asia, China, Taiwan, Hong Kong, Macau, Korea and CIS) in the fourth quarter of 2026.
- Ragnarok Origin Classic, an MMORPG Mobile and PC game
Ragnarok Origin Classic, a renewal game of Ragnarok Origin, was officially launched in Korea, Taiwan, Hong Kong, Macau and Southeast Asia (except Vietnam) on March 26, 2026 and will be launched in North, Central and South America in the third quarter of 2026.
- Ragnarok Abyss, an MMOARPG Mobile and PC game
Ragnarok Abyss will be launched in Taiwan, Hong Kong, Macau and China in the second half of 2026 and is underway for its launch in Southeast Asia and Korea.
- Ragnarok: Midgard Senki, a 2D MMORPG Mobile game
Ragnarok: Midgard Senki will be launched in Taiwan, Hong Kong and Macau in the second half of 2026 and is underway for its launch in Southeast Asia.
- Ragnarok: Twilight, an MMORPG Mobile game
Ragnarok: Twilight was officially launched on Huawei AppGallery (H5) in Southeast Asia (except Vietnam) on March 27, 2026. Ragnarok: Twilight Global will be launched in Global (except China, Taiwan, Hong Kong, Macau, Southeast Asia, Vietnam, Korea and Japan) in the second quarter of 2026.
- Ragnarok: Back to Glory, a 3D MMORPG Mobile game
Ragnarok: Back to Glory will be launched in Global (except China, Japan, Korea, Southeast Asia, Taiwan, Hong Kong, Macau, Brazil and CIS) in the second half of 2026.
- Ragnarok Zero: Global, an MMORPG PC game
Ragnarok Zero: Global will be launched in Southeast Asia, Europe and Oceania in the third quarter of 2026.
Other IP-based Games
- Wizmans World Re: Try, a JRPG Remaster Console and PC game
Wizmans World Re: Try was officially launched in Global on February 19, 2026.
- Requiem M, an MMORPG Mobile game
Requiem M will be launched in Korea in the second quarter of 2026.
- Jaleco Arcade Collection, a Retro Console and PC game
Jaleco Arcade Collection will be launched in Global in the second half of 2026.
- LIGHT ODYSSEY, a Boss Rush Action and Soul-like Console and PC game
LIGHT ODYSSEY will be launched in Global in the second half of 2026.
- Hashire HEBEREKE: EX, a Racing and Remake Console and PC game
Hashire HEBEREKE: EX will be launched in Global in the second half of 2026.
- GALVATEIN: Adventure's Guild, a Simulation Console and PC game
GALVATEIN: Adventure's Guild will be launched in Global in the second half of 2026.
- Final Knight, an Action RPG Console and PC game
Final Knight will be launched in Global in the first half of 2027.
Expansion of Ragnarok IP-business
RAGNAROK OST albums were released in sequence between March 20, 2026 and April 3, 2026, featuring 213 tracks, including the iconic theme songs of Ragnarok Online. The soundtrack is available on over 30 global streaming platforms.
Investor Presentation
Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of the first quarter in 2026 and Gravity’s business plan. The presentation can be found on the Company’s website under the IR Archives section at https://www.gravity.co.kr/en/ir/updates. Korean and Japanese versions of the presentation are also provided on the website.
About GRAVITY Co., Ltd. ---------------------------------------------------
Gravity is a developer and publisher of online and mobile games. Gravity's principal product, Ragnarok Online, is a popular online game in many markets, including Japan and Taiwan, and is currently commercially offered in 91 regions. For more information about Gravity, please visit http://www.gravity.co.kr.
Forward-Looking Statements:
Certain statements in this press release may include, in addition to historical information, “forward-looking statements” within the meaning of the “safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe”, “project,” or “continue” or the negative thereof or other similar words, although not all forward-looking statements contain these words. Investors should consider the information contained in our submissions and filings with the United States Securities and Exchange Commission (the “SEC”), including our annual report for the fiscal year ended December 31, 2025 on Form 20-F, together with such other documents that we may submit to or file with the SEC from time to time, on Form 6-K. The forward-looking statements speak only as of this press release and we assume no duty to update them to reflect new, changing or unanticipated events or circumstances.
Contact:
Mr. Heung Gon Kim
Chief Financial Officer
Gravity Co., Ltd.
Email: kheung@gravity.co.kr
Ms. Jin Lee
Ms. Jimin Park
IR Unit
Gravity Co., Ltd.
Email: ir@gravity.co.kr
Telephone: +82-2-2132-7800
GRAVITY Co., Ltd.
Consolidated Statements of Financial Position
(In millions of KRW and thousands of US$)
| As of | |||||||||||||||
| 31-Dec-25 | 31-Mar-26 | ||||||||||||||
| KRW | US$ | KRW | US$ | ||||||||||||
| (audited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| Assets | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | 203,599 | 133,639 | 209,873 | 137,757 | |||||||||||
| Short-term financial instruments | 415,034 | 272,421 | 401,742 | 263,697 | |||||||||||
| Accounts receivable, net | 56,318 | 36,966 | 83,935 | 55,094 | |||||||||||
| Other receivables, net | 2,904 | 1,906 | 3,174 | 2,083 | |||||||||||
| Prepaid expenses | 13,766 | 9,036 | 21,315 | 13,991 | |||||||||||
| Other current financial assets | 4,333 | 2,844 | 4,894 | 3,212 | |||||||||||
| Other current assets | 2,559 | 1,680 | 2,252 | 1,478 | |||||||||||
| Total current assets | 698,513 | 458,492 | 727,185 | 477,312 | |||||||||||
| Property and equipment, net | 10,770 | 7,069 | 10,122 | 6,644 | |||||||||||
| Intangible assets, net | 7,157 | 4,698 | 6,387 | 4,192 | |||||||||||
| Deferred tax assets | 7,209 | 4,732 | 6,811 | 4,471 | |||||||||||
| Other non-current financial assets | 3,812 | 2,502 | 4,290 | 2,816 | |||||||||||
| Other non-current assets | 15,201 | 9,978 | 38,026 | 24,960 | |||||||||||
| Total assets | 742,662 | 487,471 | 792,821 | 520,395 | |||||||||||
| Liabilities and Equity | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable | 61,927 | 40,648 | 72,596 | 47,651 | |||||||||||
| Deferred revenue | 21,501 | 14,113 | 20,864 | 13,695 | |||||||||||
| Withholdings | 1,655 | 1,086 | 2,044 | 1,342 | |||||||||||
| Accrued expense | 2,597 | 1,705 | 2,054 | 1,348 | |||||||||||
| Income tax payable | 4,633 | 3,041 | 9,425 | 6,186 | |||||||||||
| Other current liabilities | 3,718 | 2,440 | 3,881 | 2,547 | |||||||||||
| Total current liabilities | 96,031 | 63,033 | 110,864 | 72,769 | |||||||||||
| Long-term account payables | 623 | 409 | 623 | 409 | |||||||||||
| Long-term deferred revenue | 410 | 269 | 781 | 513 | |||||||||||
| Deferred tax liabilities | 1,736 | 1,140 | 1,737 | 1,140 | |||||||||||
| Other non-current liabilities | 6,496 | 4,264 | 5,811 | 3,814 | |||||||||||
| Total liabilities | 105,296 | 69,115 | 119,816 | 78,645 | |||||||||||
| Share capital | 3,474 | 2,280 | 3,474 | 2,280 | |||||||||||
| Capital surplus | 26,979 | 17,709 | 26,979 | 17,709 | |||||||||||
| Other components of equity | 25,523 | 16,753 | 31,750 | 20,841 | |||||||||||
| Retained earnings | 580,882 | 381,281 | 610,276 | 400,575 | |||||||||||
| Equity attributable to owners of the Parent Company | 636,858 | 418,023 | 672,479 | 441,405 | |||||||||||
| Non-controlling interest | 508 | 333 | 526 | 345 | |||||||||||
| Total equity | 637,366 | 418,356 | 673,005 | 441,750 | |||||||||||
| Total liabilities and equity | 742,662 | 487,471 | 792,821 | 520,395 | |||||||||||
* For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,523.50 to US
GRAVITY Co., Ltd.
Consolidated Statements of Comprehensive Income
(In millions of KRW and thousands of US$ except for share and ADS data)
| Three months ended | ||||||||||||||
| 31-Dec-25 | 31-Mar-25 | 31-Mar-26 | ||||||||||||
| (KRW) | (US$) | (KRW) | (US$) | (KRW) | (US$) | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Revenues: | ||||||||||||||
| Online games | 23,594 | 15,487 | 18,806 | 12,344 | 25,906 | 17,004 | ||||||||
| Mobile games | 86,175 | 56,564 | 115,486 | 75,803 | 132,800 | 87,168 | ||||||||
| Other revenue | 3,681 | 2,416 | 3,172 | 2,082 | 3,172 | 2,082 | ||||||||
| Total net revenue | 113,450 | 74,467 | 137,464 | 90,229 | 161,878 | 106,254 | ||||||||
| Cost of revenue | 74,262 | 48,744 | 87,458 | 57,406 | 110,224 | 72,349 | ||||||||
| Gross profit | 39,188 | 25,723 | 50,006 | 32,823 | 51,654 | 33,905 | ||||||||
| Operating expenses: | ||||||||||||||
| Selling, general and administrative expenses | 24,881 | 16,331 | 21,859 | 14,348 | 19,609 | 12,871 | ||||||||
| Research and development | 1,455 | 955 | 3,431 | 2,252 | 1,133 | 744 | ||||||||
| Others, net | 1,132 | 743 | (14) | (9) | 82 | 54 | ||||||||
| Total operating expenses | 27,468 | 18,029 | 25,276 | 16,591 | 20,824 | 13,669 | ||||||||
| Operating profit | 11,720 | 7,694 | 24,730 | 16,232 | 30,830 | 20,236 | ||||||||
| Finance income(costs): | ||||||||||||||
| Finance income | 7,948 | 5,217 | 10,717 | 7,034 | 9,871 | 6,479 | ||||||||
| Finance costs | (3,092) | (2,030) | (6,997) | (4,593) | (2,376) | (1,560) | ||||||||
| Profit before income tax | 16,576 | 10,881 | 28,450 | 18,673 | 38,325 | 25,155 | ||||||||
| Income tax expense | 4,409 | 2,894 | 6,372 | 4,182 | 8,934 | 5,863 | ||||||||
| Profit for the year | 12,167 | 7,987 | 22,078 | 14,491 | 29,391 | 19,292 | ||||||||
| Profit attributable to: | ||||||||||||||
| Non-controlling interest | (145) | (95) | 40 | 26 | (3) | (2) | ||||||||
| Owners of Parent company | 12,312 | 8,082 | 22,038 | 14,465 | 29,394 | 19,294 | ||||||||
| Earning per share | ||||||||||||||
| - Basic and diluted | 1,772 | 1.16 | 3,171 | 2.08 | 4,230 | 2.78 | ||||||||
| Weighted average number of shares outstanding | ||||||||||||||
| - Basic and diluted | 6,948,900 | 6,948,900 | 6,948,900 | 6,948,900 | 6,948,900 | 6,948,900 | ||||||||
| Earning per ADS | ||||||||||||||
| - Basic and diluted | 1,772 | 1.16 | 3,171 | 2.08 | 4,230 | 2.78 | ||||||||
* For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,523.50 to US
(1) Each ADS represents one common share.
