KRAFTON (259960) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 revenue of KRW 870.6 billion and operating profit of KRW 348.6 billion, with cumulative revenue up 15% year-over-year to KRW 2.4069 trillion, driven by PUBG IP, mobile growth, and strong live service operations.

• Net profit surged to KRW 369.4 billion, up 204% YoY and 2,278% QoQ, mainly due to non-operating profit growth from FX effects.

• 92% of revenue came from overseas markets, with a diversified platform mix: mobile (60.2%), PC (37.3%), console (1.4%), and others (1.1%).

• AI-first strategy is being implemented across development, operations, and management to boost productivity and growth.

• Major investments and M&A activities included acquiring Nautilus Mobile, Jofsoft, Neptune, Eleventh Hour Games, and a significant stake in Japan's ADK Group.

Financial highlights

• Q3 2025 revenue: KRW 870.6 billion; operating profit: KRW 348.6 billion; net profit: KRW 369.4 billion, up 204% YoY and 2,278% QoQ.

• Cumulative 2025 revenue: KRW 2.4069 trillion, up 15% YoY; cumulative operating profit reached a record high.

• PC platform Q3 revenue: KRW 353.9 billion, up 29% YoY and 61% QoQ; mobile revenue: KRW 488.5 billion, with BGMI and PUBG Mobile setting new records.

• Adjusted EBITDA for Q3 2025 was KRW 389.8 billion, up 6.7% YoY and 31.6% QoQ.

• Cash and cash equivalents stood at KRW 3,011.9 billion as of Q3 2025.

Outlook and guidance

• AI-first transformation to continue, with investments in AI-driven productivity, GPU clusters, and game development.

• 2026 to see major launches including Somnatica, Palworld Mobile, and PUBG 2.0 with new modes.

• Targeting three new game launches in India by FY2026, including cricket titles.

• 2027 expected to be a pivotal year with a significant increase in new IP launches.

• Plans to leverage AI and deep learning technologies for game development and operational efficiency.