Gravity (GRVY) Q1 2026 earnings summary

Executive summary

• Achieved strong top-line growth in 1Q 2026, with revenue of KRW 161.9 billion (US$106.3 million), up 42.7% QoQ and 17.8% YoY, and operating profit of KRW 30.8 billion (US$20.2 million), up 163.1% QoQ and 24.7% YoY, driven by new Ragnarok IP launches in Taiwan, Hong Kong, Macau, and other regions.

• Net profit attributable to owners was KRW 29.4 billion (US$19.3 million), up 138.7% QoQ and 33.4% YoY.

• Continued global expansion and diversification of the Ragnarok IP, with new launches and upcoming titles across multiple regions and platforms.

Financial highlights

• Revenue for 1Q 2026 reached KRW 161.9 billion; operating profit was KRW 30.8 billion; net profit attributable to owners was KRW 29.4 billion.

• Gross profit for the quarter was KRW 51.7 billion, with a gross margin of approximately 31.9%.

• Cash and cash equivalents plus short-term financial instruments totaled KRW 611.6 billion (US$401.5 million) as of March 31, 2026.

• Online game revenues rose 9.8% QoQ and 37.8% YoY, driven by Ragnarok Online in Japan, Thailand, and Latin America.

• Mobile game revenues surged 54.1% QoQ and 15.0% YoY, led by launches of Ragnarok: The New World and Ragnarok Origin Classic.

Outlook and guidance

• Multiple major launches planned for 2Q–4Q 2026 and 2027, including Ragnarok M: Classic (Korea), Ragnarok: The New World (Southeast Asia), Ragnarok Zero: Global (Southeast Asia, Europe, Oceania), Ragnarok Online 3 (China and global), and several PC/console titles.

• Strategic focus on expanding Ragnarok IP globally, targeting Western markets and leveraging subsidiaries for local market penetration.

• Expansion of Ragnarok IP with new titles and soundtrack releases on global streaming platforms.