Kakao Games (293490) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue declined 22% year-over-year but increased 10% sequentially, driven by updates to core and legacy titles, while new releases underperformed.

• Operating loss for Q3 2025 was KRW 5.4 billion, improved from the previous quarter, and net income turned positive at KRW 34.6 billion, reversing prior losses.

• Cost structures were redesigned for profitability, with staged project spending and nimble marketing to support short-term improvement.

• Revenue for the first nine months of 2025 was KRW 366.1 billion, down from KRW 627.2 billion in 2024, reflecting divestitures and a challenging market.

• Discontinued operations, including golf and wireless device businesses, contributed KRW 5.4 billion in profit.

Financial highlights

• Q3 2025 consolidated revenue was KRW 127.5 billion (down 22% YoY, up 10% QoQ), with operating loss of KRW 5.4 billion and net income of KRW 34.6 billion.

• PC game revenue rose 25% YoY and 188% QoQ to KRW 42.7 billion, mainly from PUBG collaboration; mobile game revenue fell 34% YoY and 16% QoQ to KRW 84.8 billion.

• Total assets at September 30, 2025, were KRW 3.08 trillion, with cash and cash equivalents at KRW 489.4 billion.

• OPEX for Q3 2025 was KRW 132.9 billion, down 14% YoY and up 7% QoQ, with labor and marketing costs reduced YoY.

• Equity attributable to owners was KRW 1.30 trillion at period-end.

Outlook and guidance

• Q4 will focus on updates and marketing for core titles, with new classes and trading systems planned for Odin.

• Four main titles are in the pipeline for 2026: Project Q, Project OQ (mobile), Chrono Odyssey, and ArcheAge Chronicles, with launches scheduled from 1Q 2026.

• Management expects improved profitability as discontinued operations are fully divested and new game launches ramp up.

• Financial planning for 2026 is based on conservative assumptions, with ongoing R&D and global publishing investments.