Gravity Reports Third Quarter of 2025 Result and Business Updates

Rhea-AI Summary

Gravity (Nasdaq: GRVY) reported unaudited Q3 2025 results: total revenue KRW 138,894M (US$98.9M), down 18.7% QoQ and up 8.2% YoY. Operating profit KRW 21,276M, net profit attributable to parent KRW 19,869M (US$14.1M), up 50.0% QoQ but down 11.2% YoY. Profit before tax KRW 27,207M, up 45.4% QoQ. Cash and short-term instruments totaled KRW 609,927M (US$434.2M) as of Sept 30, 2025.

Mobile revenue fell QoQ while online revenue rose QoQ driven by new Ragnarok launches; multiple new game launches and regional rollouts planned through 2026.

Positive

• Profit before tax +45.4% QoQ
• Net profit attributable to parent +50.0% QoQ
• Cash and short-term instruments KRW 609,927M
• Online game revenue +18.2% QoQ from new Ragnarok launches

Negative

• Total revenue -18.7% QoQ
• Mobile game revenue -23.9% QoQ
• Operating profit -22.8% YoY
• Net profit attributable to parent -11.2% YoY

Insights

Mobile & Games Business Analyst

Mixed quarterly results: revenue up YoY but soft QoQ; many regional launches and a large cash position support near-term optionality.

Revenue totaled KRW 138,894 million (US$ 98,883 thousand), down 18.7% QoQ but up 8.2% YoY; operating profit was KRW 21,276 million and net profit attributable to parent was KRW 19,869 million, up QoQ but below last year’s quarter by 11.2%. The company’s cash and short-term instruments stand at KRW 609,927 million, which provides liquidity to support multiple regional launches and marketing campaigns described in the update.

The firm’s revenue mix shows mobile games remain the largest source (KRW 109,571 million); online game revenue rose, driven by launches such as Ragnarok Zero (Taiwan, HK, Macau) and Ragnarok Online America Latina. QoQ declines tie to decreased spending/commissions and softer revenue from specific titles, while YoY gains reflect multiple global rollouts earlier in the year.

Key dependencies and risks include user uptake and monetization of newly launched titles, regional commission structures that affect cost of revenue, and advertising spend volatility that drives operating expense swings. The company discloses several near-term product milestones to watch: the scheduled launch of Ragnarok Landverse Genesis America on December 11, 2025, multiple launches in Q4 2025 and the first half of 2026 (including Europe, MENA and Taiwan/HK/Macau), and the investor presentation available on the company website. Monitor quarterly revenue trends by title, cost-of-revenue ratios tied to commission changes, and cash burn or shifts in short-term investments across the next two reporting periods (next 2 quarters).

Seoul, South Korea, Nov. 07, 2025 (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 third quarter ended September 30, 2025, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.

THIRD QUARTER 2025 HIGHLIGHTS

• Total revenues were KRW 138,894 million (US$ 98,883 thousand), representing an 18.7% decrease from the second quarter ended June 30, 2025 (“QoQ”) and an 8.2% increase from the third quarter ended September 30, 2024 (“YoY”).

• Operating profit was KRW 21,276 million (US$ 15,147 thousand), representing an 8.2% increase QoQ and a 22.8% decrease YoY.

• Profit before income tax expense was KRW 27,207 million (US$ 19,369 thousand), representing a 45.4% increase QoQ and a 4.3% decrease YoY.

• Net profit attributable to parent company was KRW 19,869 million (US$ 14,145 thousand), representing a 50.0% increase QoQ and an 11.2% decrease YoY.

REVIEW OF THIRD QUARTER 2025 FINANCIAL RESULTS

Revenues

Online game revenues for the third quarter of 2025 were KRW 25,968 million (US$ 18,487 thousand), representing an 18.2% increase QoQ from KRW 21,971 million and a 32.1% increase YoY from KRW 19,657 million. The increase QoQ was mainly attributable to initial revenue from Ragnarok Zero launched in Taiwan, Hong Kong and Macau on July 3, 2025.

The increase YoY was mainly due to initial revenues from Ragnarok Online America Latina launched in Latin America on May 28, 2025 and Ragnarok Zero launched in Taiwan, Hong Kong and Macau on July 3, 2025.

Mobile game revenues were KRW 109,571 million (US$ 78,007 thousand) for the third quarter of 2025, representing a 23.9% decrease QoQ from KRW 144,003 million and a 6.9% increase YoY from KRW 102,524 million. The decrease QoQ was mainly attributable to decreased revenues from Ragnarok M: Classic launched in Southeast Asia and Taiwan, Hong Kong and Macau. Such decrease was partially offset by initial revenue from Ragnarok: Twilight launched in Taiwan, Hong Kong and Macau on July 3, 2025, increased revenue from Ragnarok X: Next Generation launched in North, Central and South America, Oceania, England, Portugal, Spain and Ireland and initial revenues from Ragnarok M: Classic Global launched in North and South America, Europe, Middle East, certain regions of North Africa and Oceania on September 3, 2025. The increase YoY was mainly due to initial revenues from Ragnarok M: Classic launched in Taiwan, Hong Kong and Macau on April 16, 2025 and Southeast Asia on February 14, 2025, Ragnarok: Twilight launched in Taiwan, Hong Kong and Macau on July 3, 2025 and Ragnarok X: Next Generation launched in North, Central and South America, Oceania, England, Portugal, Spain and Ireland on May 8, 2025. This increase was partially offset by decreased revenues from Ragnarok Origin in North, Central and South America, Southeast Asia and Taiwan, Hong Kong and Macau and THE RAGNAROK in Taiwan, Hong Kong and Macau.

Other revenues were KRW 3,355 million (US$ 2,389 thousand) for the third quarter of 2025, representing a 29.6% decrease QoQ from KRW 4,766 million and a 45.8% decrease YoY from KRW 6,195 million.

Cost of Revenue

Cost of revenue was KRW 88,542 million (US$ 63,036 thousand) for the third quarter of 2025, representing a 22.3% decrease QoQ from KRW 114,006 million and a 16.1% increase YoY from KRW 76,261 million. The decrease QoQ was mainly due to decreased commission paid for mobile game services related to Ragnarok M: Classic launched in Southeast Asia and Taiwan, Hong Kong and Macau. The increase YoY was primarily due to increased commission paid for mobile game services related to Ragnarok M: Classic in Taiwan, Hong Kong and Macau and Southeast Asia, Ragnarok: Twilight in Taiwan, Hong Kong and Macau and Ragnarok X: Next Generation in North, Central and South America, Oceania, England, Portugal, Spain and Ireland.

Operating Expenses

Operating expenses were KRW 29,076 million (US$ 20,700 thousand) for the third quarter of 2025, representing a 21.6% decrease QoQ from KRW 37,064 million and an 18.5% increase YoY from KRW 24,539 million. The decrease QoQ was mainly due to decreased advertising expenses for Ragnarok Online America Latina in Latin America, Ragnarok: Back to Glory in Korea and Nobunaga's Ambition: The Road to the World in Japan and research and development expenses. The increase YoY was mainly due to increased advertising expenses for Ragnarok Idle Adventure Plus in Korea and Global and Nobunaga's Ambition: The Road to the World in Japan, salaries and commission paid.

Profit Before Income Tax Expense

Profit before income tax expense was KRW 27,207 million (US$ 19,369 thousand) for the third quarter of 2025 compared with profit before income tax expense of KRW 18,706 million for the second quarter of 2025 and profit before income tax expense of KRW 28,415 million for the third quarter of 2024.

Net Profit

As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 19,869 million (US$ 14,145 thousand) for the third quarter of 2025 compared with net profit attributable to parent company of KRW 13,245 million for the second quarter of 2025 and a net profit attributable to parent company of KRW 22,385 million for the third quarter of 2024.

Liquidity

The balance of cash and cash equivalents and short-term financial instruments was KRW 609,927 million (US$ 434,226 thousand) as of September 30, 2025.

Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,404.63 to US$ 1.00, the noon buying rate in effect on September 30, 2025 as quoted by the Federal Reserve Bank of New York.

GRAVITY BUSINESS UPDATES

Ragnarok Online IP-based Games

• Ragnarok Idle Adventure Plus, a Vertical Idle MMORPG Mobile game

Ragnarok Idle Adventure Plus officially received an ISBN from Chinese government on September 24, 2025 and was officially launched in Korea on August 28, 2025.

• Ragnarok 3, an MMORPG Mobile and PC game

Ragnarok 3 officially received an ISBN from Chinese government on October 21, 2025 and will be launched in Global within 2026.

• Ragnarok Libre, a Time Effective MMORPG Line game

Ragnarok Libre was officially launched in Global (except Korea, China and Japan) on August 11, 2025.

• Ragnarok: Twilight, an Idle MMOARPG Mobile game

Ragnarok: Twilight was officially launched in China on August 15, 2025 and Southeast Asia (except Vietnam) on October 23, 2025.

• Ragnarok M: Classic Global, an MMORPG Mobile and PC game

Ragnarok M: Classic Global was officially launched in North and South America, Europe, Middle East, certain regions of North Africa and Oceania on September 3, 2025.

• Ragnarok: The Promised Adventure (Tentative English Title), an Adventure MMORPG Mobile and WeChat game

Ragnarok: The Promised Adventure (Tentative English Title) was officially launched in China on September 25, 2025.

• THE RAGNAROK, an MMORPG Mobile and PC game

THE RAGNAROK was officially launched on WeChat (H5) Mini Programs in China on September 20, 2025.

• Ragnarok X: Next Generation, an MMORPG Mobile and PC game

Ragnarok X: Next Generation will be launched in Europe (except England, Portugal, Spain and Ireland), Middle East and North Africa in the first half of 2026.

• Ragnarok: The New World, an MMORPG Mobile and PC game

Ragnarok: The New World will be launched in Taiwan, Hong Kong and Macau in the first quarter of 2026.

• Ragnarok Abyss, an MMOARPG Mobile and PC game

Ragnarok Abyss is underway for its launch in Southeast Asia in the first half of 2026.

• Ragnarok: Back to Glory, an MMORPG Mobile game

Ragnarok: Back to Glory is scheduled to be launched in China in the fourth quarter of 2025.

• Ragnarok Endless Trails (Tentative English Title), a Battle Royal Mobile game

Ragnarok Endless Trails (Tentative English Title) is planned to be launched in Southeast Asia in the first quarter of 2026.

Ragnarok Online IP-based Blockchain Game

• Ragnarok Landverse Genesis America, an MMORPG Blockchain and PC game

Ragnarok Landverse Genesis America is scheduled to be launched in North and South America on December 11, 2025.

Other IP-based Games

• Schop Hero, a New Fresh Whole Digging Puzzle RPG Mobile game

Schop Hero was officially launched in Japan on September 17, 2025.  

• Chess Rumble, a Collectible Tactical RPG Mobile game

Chess Rumble was officially launched in Global (except Korea and Japan) on October 15, 2025.

• THE GOOD OLD DAYS, a Metroidvania Adventure Console and PC game

THE GOOD OLD DAYS was officially launched in Global on October 23, 2025.

• Meow Star Acres 2, a Farm Simulation Mobile game

Meow Star Acres 2 was soft-launched in Canada, Australia, Philippines and Malaysia on October 28, 2025.

• Aeruta, an Action RPG PC game

Aeruta was officially launched on Steam in Global on November 6, 2025.

• Hashire HEBEREKE: EX, a Racing and Remake Console and PC game

Hashire HEBEREKE: EX is underway for its launch in Global in the first half of 2026.

• the Game of LIFE for Nintendo Switch, a Board and Party Console game

the Game of LIFE for Nintendo Switch will be launched in Asia (except Japan) on December 18, 2025.

Expansion of Other IP-business

Gravity Co., Ltd. has signed a publishing agreement of the Game of LIFE for Nintendo Switch, a Board and Party Console game based on the Game of LIFE's IP, in Asia (except Japan) with TOMY COMPANY, LTD.

Investor Presentation

Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of the third quarter in 2025 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, 2024 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. Yujin Oh
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-24								30-Sep-25
		KRW				US$				KRW				US$
		(audited)				(unaudited)				(unaudited)				(unaudited)
Assets
Current assets:
Cash and cash equivalents			228,898				162,960				197,348				140,498
Short-term financial instruments			324,304				230,882				412,579				293,728
Accounts receivable, net			81,152				57,775				59,984				42,704
Other receivables, net			1,572				1,119				2,738				1,949
Prepaid expenses			8,115				5,777				15,734				11,202
Other current financial assets			6,602				4,700				4,158				2,960
Other current assets			2,967				2,112				4,777				3,401
Total current assets			653,610				465,325				697,318				496,442
Property and equipment, net			9,957				7,089				10,671				7,597
Intangible assets, net			7,057				5,024				8,062				5,740
Deferred tax assets			5,617				3,999				6,461				4,600
Other non-current financial assets			1,767				1,258				1,795				1,278
Other non-current assets			8,451				6,017				6,544				4,659
Total assets			686,459				488,712				730,851				520,316
Liabilities and Equity
Current liabilities:
Accounts payable			67,930				48,361				68,986				49,113
Deferred revenue			26,761				19,052				19,695				14,021
Withholdings			1,588				1,131				1,408				1,002
Accrued expense			2,651				1,887				2,511				1,788
Income tax payable			6,507				4,633				5,184				3,691
Other current liabilities			3,212				2,287				3,655				2,602
Total current liabilities			108,649				77,351				101,439				72,217
Long-term account payables			220				157				623				444
Long-term deferred revenue			2,572				1,831				506				360
Other non-current liabilities			5,361				3,817				5,388				3,837
Deferred tax liabilities			1,294				921				1,295				922
Total liabilities			118,096				84,077				109,251				77,780
Share capital			3,474				2,473				3,474				2,473
Capital surplus			26,979				19,207				26,979				19,207
Other components of equity			23,801				16,945				21,948				15,625
Retained earnings			513,418				365,518				568,570				404,783
Equity attributable to owners of the Parent Company			567,672				404,143				620,971				442,088
Non-controlling interest			691				492				629				448
Total equity			568,363				404,635				621,600				442,536
Total liabilities and equity			686,459				488,712				730,851				520,316

* For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,404.63 to US$ 1.00, the noon buying rate in effect on September 30, 2025 as quoted by the Federal Reserve Bank of New York.

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												Nine months ended
		30-Jun-25			30-Sep-24			30-Sep-25						30-Sep-24			30-Sep-25
		(KRW)			(KRW)			(KRW)			(US$)			(KRW)			(KRW)			(US$)
		(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues:
Online games			21,971			19,657			25,968			18,487			57,167			66,745			47,518
Mobile games			144,003			102,524			109,571			78,007			300,090			369,060			262,745
Other revenue			4,766			6,195			3,355			2,389			13,865			11,293			8,041
Total net revenue			170,740			128,376			138,894			98,883			371,122			447,098			318,304
Cost of revenue			114,006			76,261			88,542			63,036			225,895			290,006			206,464
Gross profit			56,734			52,115			50,352			35,847			145,227			157,092			111,840
Operating expenses:
Selling, general and administrative expenses			33,509			20,325			26,675			18,991			64,181			82,043			58,409
Research and development			3,291			3,706			2,149			1,530			11,594			8,871			6,316
Others, net			264			508			252			179			18			502			357
Total operating expenses			37,064			24,539			29,076			20,700			75,793			91,416			65,082
Operating profit			19,670			27,576			21,276			15,147			69,434			65,676			46,758
Finance income(costs):
Finance income			2,651			5,924			3,283			2,337			21,088			16,651			11,854
Finance costs			(3,615)			(5,085)			2,648			1,885			(9,552)			(7,964)			(5,670)
Profit before income tax			18,706			28,415			27,207			19,369			80,970			74,363			52,942
Income tax expense			5,486			6,080			7,362			5,241			19,172			19,220			13,683
Profit for the year			13,220			22,335			19,845			14,128			61,798			55,143			39,259
Profit attributable to:
Non-controlling interest			(25)			(50)			(24)			(17)			(21)			(9)			(6)
Owners of Parent			13,245			22,385			19,869			14,145			61,819			55,152			39,265
Earnings per share
- Basic and diluted			1,906			3,221			2,859			2.04			8,896			7,937			5.65
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			6,948,900
Earnings per ADS
- Basic and diluted			1,906			3,221			2,859			2.04			8,896			7,937			5.65

* For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,404.63 to US$1.00, the noon buying rate in effect on September 30, 2025 as quoted by the Federal Reserve Bank of New York.
(1) Each ADS represents one common share.

FAQ

What were Gravity (GRVY) Q3 2025 total revenues and QoQ change?

Total revenues were KRW 138,894 million (US$98.9M), down 18.7% QoQ.

How did Gravity (GRVY) Q3 2025 net profit perform versus Q2 2025?

Net profit attributable to parent was KRW 19,869M, up 50.0% QoQ.

What drove Gravity (GRVY) online revenue growth in Q3 2025?

Online revenue rose 18.2% QoQ due to initial revenues from Ragnarok Zero and regional launches.

Why did Gravity (GRVY) mobile revenue decline in Q3 2025?

Mobile revenue fell 23.9% QoQ, mainly from decreased revenues for Ragnarok M: Classic in key regions.

How much cash did Gravity (GRVY) hold at Sept 30, 2025?

Cash and short-term financial instruments were KRW 609,927 million (US$434.2M).

What upcoming Gravity (GRVY) launches could affect 2026 revenue?

Multiple Ragnarok titles listed for 2026 launches, including Ragnarok 3, Ragnarok X Europe rollout, and other regional releases.