Pearl Abyss (263750) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached KRW 521.1 billion, up 91% year-over-year, driven by the global launch of 'Crimson Desert' and continued strength in 'Black Desert' IP across PC, console, and mobile platforms.

• Operating income surged to KRW 279.7 billion, a significant increase from KRW 32.2 billion in the prior year, reflecting strong sales and effective cost management.

• Net income attributable to shareholders was KRW 257.5 billion, compared to a net loss of KRW 8.4 billion in the previous year, aided by both core business growth and the disposal of certain subsidiaries.

• 2Q26 saw a significant QoQ decline in operating revenue and profit as the initial launch impact of Crimson Desert faded, while Black Desert outperformed guidance due to strong live updates and content optimization.

• Crimson Desert sold 2.11 million copies in 2Q26, but revenue was impacted by lower ASP, deferred revenue for refund guarantees, and a higher share of sales from channels recognizing only a portion of gross sales.

Financial highlights

• Cash and cash equivalents increased to KRW 809.3 billion as of June 30, 2026.

• 2Q26 operating revenue: KRW 192.6 billion, down 41.4% QoQ; operating profit: KRW 67.6 billion, down 68.1% QoQ; net profit: KRW 70.9 billion, down 58.3% QoQ.

• Total assets rose to KRW 1.28 trillion, with equity at KRW 1.05 trillion and a debt-to-equity ratio of 22.4%.

• Earnings per share from continuing operations were KRW 3,924, up from KRW 411 in the prior year.

• Research and development expenses for H1 2026 were KRW 7.97 billion, representing 15.3% of operating revenue.

Outlook and guidance

• 2026 operating revenue guidance revised to KRW 709.8–743.8 billion; operating profit expected at KRW 315.5–345.2 billion, up over 1,200% YoY.

• Black Desert 2026 revenue projected at KRW 239–244.6 billion (-4–7% YoY); Crimson Desert at KRW 468.9–497.3 billion.

• The company is developing two new IPs, 'DokeV' and 'PLAN 8', targeting further portfolio diversification and global expansion.

• Ongoing investments in proprietary game engines and global publishing infrastructure are expected to support long-term growth.

• Focus on boosting live operations for Black Desert and expanding Crimson Desert sales through DLC, pricing, and platform expansion.