Netmarble (251270) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached KRW 696.0 billion, up 7.5% year-over-year but down 3% sequentially, driven by strong domestic performance of Vampir, global launch of Seven Knights Re:Birth, and regional expansion of existing games.

• EBITDA was KRW 122.4 billion, up 19.1% YoY with a margin of 17.6%.

• Operating profit was KRW 90.9 billion (margin 13.1%), and net income was KRW 40.6 billion, with net profit impacted by fair value adjustments on held assets.

• The game portfolio remains diversified, with Seven Knights Re:Birth and Vampir as top contributors, and overseas sales accounting for 68% of total revenue.

Financial highlights

• EBITDA: KRW 122.4 billion (YoY +19.1%, QoQ -6.6%), margin 17.6%.

• Operating profit: KRW 90.9 billion; margin 13.1%.

• Marketing expenses rose 7.3% QoQ and 38.9% YoY to KRW 145.3 billion, reflecting new launches and global expansion.

• Labor expenses decreased 2.6% QoQ and 4.9% YoY, attributed to efficiency gains without headcount reduction.

• Commission rate dropped by 1.5 percentage points to 32.3% due to increased sales of self-developed IP titles.

Outlook and guidance

• Q4 2025 is expected to see higher revenue than Q3, driven by full-quarter contributions from Vampir and Seven Knights Re:Birth, as well as global expansion and updates of existing titles.

• Major new titles, including Solo Leveling: Arise/ARISE OVERDRIVE, are scheduled for Q4 2025, with additional high-profile launches planned for the first half of 2026.

• No significant one-off or abnormal costs are anticipated for Q4, though non-operating items may arise from annual impairment and fair value assessments.