Gravity (GRVY) Q2 2026 earnings summary

Executive summary

• 2Q 2026 revenue was KRW 161.9 billion (US$104.5 million), flat sequentially and down 5.2% YoY; operating profit was KRW 27.6 billion (US$17.8 million), down 10.5% QoQ but up 40.2% YoY, reflecting strong fundamentals despite increased R&D investment.

• Net profit attributable to owners was KRW 24.3 billion (US$15.7 million), down 17.2% QoQ but up 83.8% YoY.

• Over 90% of total revenue in 1H 2026 was generated from global markets, highlighting successful international expansion.

• Major new game launches and ongoing global expansion of the Ragnarok IP drove growth and diversified revenue streams.

Financial highlights

• Gross profit for 2Q 2026 was KRW 52.3 billion, with a gross margin of approximately 32.3%.

• Net profit attributable to owners was KRW 24.3 billion, with EPS of KRW 3,503.

• Cash and cash equivalents increased to KRW 649.2 billion (US$419.2 million) as of June 30, 2026.

• SG&A expenses rose to KRW 21.1 billion and R&D expenses to KRW 2.95 billion, reflecting investment in future growth.

• Online game revenue rose 14.5% QoQ and 35.0% YoY, while mobile game revenue declined 3.2% QoQ and 10.7% YoY.

Outlook and guidance

• Simultaneous China and global launch of Ragnarok Online 3 planned for 2027, expected to fuel top-line growth.

• Multiple new game launches planned for the second half of 2026 and into 2027, including expansions of the Ragnarok IP and new titles in global markets.

• Strategic investments of USD 200 million planned (USD 100 million for growth, USD 100 million for strategic initiatives) to build the Ragnarok IP ecosystem.

• First-ever interim dividend of KRW 30 billion to be distributed, enhancing shareholder returns.

• Joint ventures established in Indonesia, with plans for further expansion in Thailand and other countries.