GRAVITY Co., Ltd. Q1 2026 Financial Summary
Business Context and Reporting Period
This Form 6-K reports the unaudited financial results for GRAVITY Co., Ltd. (Nasdaq: GRVY) for the first quarter ended March 31, 2026. The company is a South Korean developer and publisher of online and mobile games, primarily leveraging the Ragnarok Online intellectual property.
Key Financial Metrics
| Metric | Q1 2026 (KRW) | Q1 2026 (USD) | QoQ Change | YoY Change |
|---|---|---|---|---|
| Total Revenue | 161,878 million | $106,254 thousand | +42.7% | +17.8% |
| Operating Profit | 30,830 million | $20,236 thousand | +163.1% | +24.7% |
| Profit Before Tax | 38,325 million | $25,155 thousand | +131.2% | +34.7% |
| Net Profit (Parent) | 29,394 million | $19,294 thousand | +138.7% | +33.4% |
| EPS (Basic/Diluted) | 4,230 KRW | $2.78 | N/A | N/A |
| Cash & Short-term Instruments | 611,615 million | $401,454 thousand | N/A | N/A |
Revenue Breakdown: Mobile games contributed KRW 132,800 million (82% of total), while online games contributed KRW 25,906 million. Other revenues were KRW 3,172 million.
Margins: Gross profit was KRW 51,654 million (31.9% margin). Operating expenses decreased 24.2% QoQ to KRW 20,824 million.
Material Changes vs. Prior Periods
- Revenue Growth: The 42.7% QoQ revenue increase was driven by the launch of Ragnarok: The New World in Taiwan, Hong Kong, and Macau (Jan 2026) and Ragnarok Origin Classic in Southeast Asia and Korea (Mar 2026). Online game revenue grew 9.8% QoQ due to Ragnarok Online performance in Japan.
- Cost Structure: Cost of revenue rose 48.4% QoQ, primarily due to initial commission payments for new mobile game launches. However, operating expenses fell 24.2% QoQ due to reduced advertising spend and impairment losses on non-current assets.
- Profitability: Operating profit surged 163.1% QoQ, outpacing revenue growth due to the significant reduction in operating expenses.
Outlook, Guidance, and Business Updates
Management provided a detailed pipeline of upcoming launches for 2026 and 2027:
- Q2 2026: Launch of Ragnarok: Twilight Global; Requiem M in Korea.
- Q3 2026: Launch of Ragnarok Origin Classic in the Americas; Ragnarok Zero: Global in Southeast Asia, Europe, and Oceania.
- Q4 2026: Global launch of Ragnarok: The New World (excluding specific Asian markets).
- 2027: Planned launch of Ragnarok Online 3 in China (Q1) and Global.
Risks and Contingencies: The filing includes standard forward-looking statement disclaimers. No specific new material risks or contingencies were detailed beyond the standard reliance on successful game launches and market reception.
Investor Verification Checklist
- Verify the sustainability of the 163% QoQ operating profit increase, specifically the impact of reduced advertising spend versus organic growth.
- Monitor the performance of newly launched titles (Ragnarok: The New World, Ragnarok Origin Classic) in Q2 2026 to confirm revenue retention.
- Review the exchange rate impact (KRW 1,523.50 to USD 1.00) on reported USD figures versus actual cash flow repatriation.
- Assess the timeline and execution risk for the 2027 launch of Ragnarok Online 3 in China, a critical market.