GRAVITY Co., Ltd. Q2 2026 Financial Summary
Business Context and Reporting Period
This Form 6-K reports the unaudited financial results for GRAVITY Co., Ltd. (Nasdaq: GRVY), a South Korean developer and publisher of online and mobile games, for the second quarter ended June 30, 2026. The filing was released on August 7, 2026.
Key Financial Metrics
| Metric | Q2 2026 (KRW) | Q2 2026 (USD) | QoQ Change | YoY Change |
|---|---|---|---|---|
| Total Revenue | 161,884 million | 104,524 thousand | Flat | -5.2% |
| Operating Profit | 27,582 million | 17,810 thousand | -10.5% | +40.2% |
| Profit Before Tax | 32,470 million | 20,966 thousand | -15.3% | +73.6% |
| Net Profit (Parent) | 24,341 million | 15,717 thousand | -17.2% | +83.8% |
| Cash & Short-term Instruments | 649,231 million | 419,189 thousand | N/A | N/A |
Revenue Breakdown: Online game revenue increased 14.5% QoQ to KRW 29,660 million, driven by growth in Thailand and Latin America. Mobile game revenue decreased 3.2% QoQ to KRW 128,611 million, impacted by declines in key titles in Taiwan and Southeast Asia.
Costs and Expenses: Cost of revenue decreased 0.6% QoQ due to lower salaries. Operating expenses increased 18.9% QoQ, primarily due to higher research and development costs and salaries, despite a significant 33.2% YoY decrease in advertising spend.
Material Changes vs. Prior Period
- Profitability Expansion: Despite flat revenue, net profit attributable to the parent company surged 83.8% year-over-year, driven by a 33.2% reduction in operating expenses compared to Q2 2025.
- Segment Performance: Online games showed strong growth (+35.0% YoY), while mobile games faced headwinds (-10.7% YoY) due to the natural lifecycle of older titles like Ragnarok M: Classic.
- Liquidity Position: Total cash and short-term financial instruments stood at KRW 649.2 billion as of June 30, 2026, indicating strong liquidity.
Outlook, Updates, and Risks
Business Updates: The company announced numerous launches and milestones, including the receipt of an ISBN for Ragnarok M: Eternal Love 2 in China, and global launches for Ragnarok: Twilight, Ragnarok: Rebirth, and Ragnarok: The New World. New joint ventures were established in Indonesia, with plans for Thailand and two other countries to expand UGC and HTML5 platforms.
Forward-Looking Statements: The filing includes standard disclaimers regarding forward-looking statements, noting that actual results may differ due to risks such as market competition, regulatory changes, and the success of new game launches.
Risks: The company faces risks related to the performance of new game launches and the continued decline of legacy mobile titles. No specific contingencies or unusual items were flagged as material risks in this summary.
Investor Verification Checklist
- Verify the sustainability of the 83.8% YoY net profit increase given the 5.2% revenue decline.
- Monitor the performance of newly launched titles (e.g., Ragnarok: Rebirth, Ragnarok: The New World) to offset declines in legacy mobile games.
- Review the impact of increased R&D expenses on future product pipelines.
- Confirm the timeline and regulatory approval status for China launches (Ragnarok M: Eternal Love 2, Ragnarok Online 3).
- Assess the progress of new joint ventures in Indonesia and Thailand for diversification.