KRAFTON (259960) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue in 2025, reaching KRW 3,326.6bn, up 22.8% year-over-year, driven by PUBG IP growth and new IP launches, with a strategic focus on franchise IPs and a five-year growth roadmap.

• Expanded production leadership, diversified the game lineup, and initiated 15 new first-party publishing projects, laying groundwork for long-term value and platform transformation.

• AI capabilities are being leveraged for internal efficiency, new business opportunities, and expansion into new technology domains.

• Disciplined M&A and equity investments to secure mega IPs and expand the publishing lineup.

Financial highlights

• Full-year 2025 revenue reached KRW 3.3266 trillion, up 22.8% year-over-year; Q4 revenue was KRW 919.7 billion, up 48.9% year-over-year.

• Operating profit declined 10.8% year-over-year to KRW 1.0544 trillion due to increased development investment and one-off costs.

• Net income for FY2025 was KRW 733.7 billion, down 43.7% year-over-year; Q4 recorded a net loss of KRW 22.7 billion due to non-operating losses and impairments.

• Other revenue surged 963% year-over-year to KRW 358.5 billion, mainly from ADK consolidation.

• Operating expenses for FY2025 rose 48.8% to KRW 2,272.2 billion, with significant increases in personnel and paid commissions.

Outlook and guidance

• Plans to accelerate PUBG's platform transformation and content expansion in 2026, with continued investment in new IPs, AI-driven innovation, and resource allocation to new title development and M&A.

• Targeting KRW 7 trillion in revenue and doubling corporate value within five years.

• Shareholder return policy for 2026-2028 includes over KRW 1 trillion in buybacks and dividends, up 44% from prior policy.

• Marketing expenses expected to increase in 2026 due to more title launches, but remain a mid-single digit percentage of revenue.

• Paid commissions likely to rise in 2026 due to increased outsourcing and new title development.