KRAFTON (259960) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 revenue of ₩870.6B (KRW 870.6bn) and operating profit of ₩348.6B (KRW 348.6bn), with cumulative revenue up 15% YoY to ₩2.4069T (KRW 2.4tn).

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

• PUBG IP franchise and mobile titles drove record results, with strong live service operations and content updates, marking the fourth consecutive year of PUBG IP growth.

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

Financial highlights

• Q3 2025 revenue: ₩870.6B (KRW 870.6bn); operating profit: ₩348.6B (KRW 348.6bn); net profit: ₩369.4B (KRW 369.4bn), up 204% YoY and 2,278% QoQ.

• Cumulative 2025 revenue: ₩2.4069T (KRW 2.4tn), up 15% YoY; cumulative operating profit reached a record high.

• PC platform Q3 revenue: ₩353.9B (KRW 353.9bn), up 29% YoY and 61% QoQ; mobile revenue: ₩488B (KRW 488.5bn), with BGMI and PUBG Mobile setting new records.

• Adjusted Q3 profit (including stock compensation): ₩340.8B; adjusted EBITDA: KRW 389.8bn, up 6.7% YoY.

• Net profit margin improved to 42.4% in Q3 2025 from 16.9% in Q3 2024.

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.