KRAFTON (259960) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue was KRW 971.4bn, up 11.6% YoY; operating profit was KRW 225.0bn, down 35.5% YoY, mainly due to lower PC revenue.

• 9M26 revenue reached KRW 3.6tn, up 51% YoY; operating profit rose 14% to KRW 1.2tn, equal to 114% of FY2025 operating profit.

• Growth priorities include expanding PUBG as a gameplay and cultural platform, scaling Subnautica and new titles, and developing game-focused AI capabilities.

Financial highlights

• Q3 operating expenses were KRW 746.4bn, up 43.0% YoY and down 15.1% QoQ; ADK consolidation drove the YoY increase, while lower paid commissions supported the QoQ decline.

• Q3 net loss was KRW 68.4bn versus net profit of KRW 369.4bn a year earlier; FX-related non-operating losses contributed to the decline.

• Q3 EBITDA was KRW 277.7bn and adjusted EBITDA was KRW 287.0bn; adjusted EBITDA adds share-based payment to EBITDA.

• Personnel expenses were KRW 209.7bn, platform fees and cost of revenue KRW 102.8bn, paid commissions KRW 284.6bn and marketing expenses KRW 65bn.

Outlook and guidance

• Full-year 2026 PUBG franchise revenue is expected to grow at a double-digit rate YoY; Q4 PC revenue is expected to grow YoY, with double-digit Q4 growth and 2027 growth targeted.

• PUBG's 2027 10th anniversary plans include a large-scale March update, major and seasonal content, and monthly collaborations.

• Subnautica 2 is preparing for full launch, with an Early Access 2.0 update planned by year-end; DED.NET is being refined for a 2027 launch.

• 2027 pipeline includes DED.NET, NO LAW, Age Twisters, TARAE, Project ZETA, inZOI full and PS5 releases, Palworld Mobile, Waltz and Jam; launch dates remain under refinement.

• PUBG Mobile Flash and BGMI Air target players constrained by data, storage, devices or networks; BGMI Air is scheduled for Dec. 10.