Gravity Co., Ltd. reported third‑quarter 2025 revenue of KRW 138,894 million (US$98,883 thousand), up 8.2% from the same period a year earlier but down 18.7% from the prior quarter. The YoY gain is driven largely by a 32.1% increase in online‑game revenue, fueled by the launch of Ragnarok Zero in Taiwan, Hong Kong and Macau on July 3 and the global release of Ragnarok M: Classic on September 3. Mobile‑game revenue, however, fell 18.7% QoQ, reflecting weaker demand in Southeast Asia and the initial launch phase of Ragnarok M: Classic in those markets.
Operating profit rose to KRW 21,276 million (US$15,147 thousand), an 8.2% increase QoQ and a 22.8% decline YoY. The improvement over the prior quarter is largely attributable to tighter cost control—cost of revenue fell 22.3% QoQ as the company negotiated lower mobile‑service commissions, while operating expenses dropped 21.6% QoQ thanks to a more focused marketing spend. The YoY decline, however, reflects the higher commission costs that offset the revenue gains from new releases.
Net profit attributable to the parent company reached KRW 19,869 million (US$14,145 thousand), up 50% QoQ but down 11.2% YoY. The sharp QoQ jump is a result of the operating‑profit lift and the absence of one‑time charges, while the YoY dip mirrors the overall margin compression caused by higher commissions and intensified marketing spend. The company’s profitability remains healthy, with a net margin of roughly 14% for the quarter.
Cash and short‑term instruments totaled KRW 609,927 million (US$434,226 thousand) at September 30, 2025, a 12% increase from the prior quarter. The robust liquidity position gives Gravity flexibility to fund future game launches and marketing initiatives, even as it navigates margin pressure from commission and advertising costs. The company’s cash reserves are a key buffer that supports its growth strategy in the highly competitive online‑gaming market.
Management highlighted that the online‑game revenue surge was “mainly due to initial revenues from Ragnarok Online America Latina launched in Latin America on May 28 and Ragnarok Zero launched in Taiwan, Hong Kong and Macau on July 3.” It also noted that the mobile‑game revenue decline was “mainly attributable to decreased revenues from Ragnarok M: Classic launched in Southeast Asia and Taiwan, Hong Kong and Macau.” These comments underscore the company’s focus on expanding its global footprint while managing the cost implications of new releases.
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