Gravity Reports Second Quarter of 2025 Results and Business Update

August 08, 2025 at 06:15 AM EDT

Seoul, South Korea, Aug. 08, 2025 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games based in South Korea, today announced its unaudited financial results for the second quarter ended June 30, 2025, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.

SECOND QUARTER 2025 HIGHLIGHTS

Total revenues were KRW 170,740 million (US$ 126,147 thousand), representing a 24.2% increase from the first quarter ended March 31, 2025 (“QoQ”) and a 38.9% increase from the second quarter ended June 30, 2024 (“YoY”).

Operating profit was KRW 19,670 million (US$ 14,533 thousand), representing a 20.5% decrease QoQ and a 31.2% increase YoY.

Profit before income tax expense was KRW 18,706 million (US$ 13,821 thousand), representing a 34.2% decrease QoQ and a 6.7% decrease YoY.

Net profit attributable to parent company was KRW 13,245 million (US$ 9,786 thousand), representing a 39.9% decrease QoQ and a 5.4% increase YoY.

REVIEW OF SECOND QUARTER 2025 FINANCIAL RESULTS

Revenues

Online game revenues for the second quarter of 2025 were KRW 21,971 million (US$ 16,233 thousand), representing a 16.8% increase QoQ from KRW 18,806 million and a 13.0% increase YoY from KRW 19,445 million. The increase QoQ was mainly attributable to initial revenue from Ragnarok Online America Latina launched in Latin America on May 28, 2025. The increase YoY was also mainly due to initial revenue from Ragnarok Online America Latina launched in Latin America on May 28, 2025.

Mobile game revenues were KRW 144,003 million (US$ 106,393 thousand) for the second quarter of 2025, representing a 24.7% increase QoQ from KRW 115,486 million and a 45.4% increase YoY from KRW 99,019 million. The increase QoQ was resulted by initial revenues from Ragnarok M: Classic launched in Taiwan, Hong Kong and Macau on April 16, 2025 and Ragnarok X: Next Generation launched in North, Central and South America, Oceania, England, Portugal, Spain and Ireland on May 8, 2025. Such increase was partially offset by decreased revenues from Ragnarok: Rebirth in Taiwan, Hong Kong and Macau, Ragnarok Origin in Southeast Asia, Taiwan, Hong Kong and Macau and THE RAGNAROK in Southeast Asia. The increase YoY was mainly due to initial revenues from Ragnarok M: Classic launched in Taiwan, Hong Kong and Macau on April 16, 2025 and Southeast Asia on February 14, 2025, increased revenue from Ragnarok Idle Adventure Plus launched in Global except Taiwan, Hong Kong, Macau, China, Korea and Japan on February 20, 2025 and initial revenue from Ragnarok X: Next Generation launched in North, Central and South America, Oceania, England, Portugal, Spain and Ireland on May 8, 2025. This increase was partially offset by decreased revenues from Ragnarok Origin in North, Central and South America and Southeast Asia.

Other revenues were KRW 4,766 million (US$ 3,521 thousand) for the second quarter of 2025, representing a 50.3% increase QoQ from KRW 3,172 million and a 5.8% increase YoY from KRW 4,503 million.

Cost of Revenue

Cost of revenue was KRW 114,006 million (US$ 84,231 thousand) for the second quarter of 2025, representing a 30.4% increase QoQ from KRW 87,458 million and a 50.0% increase YoY from KRW 76,006 million. The increase QoQ was mainly due to commission paid for mobile game services related to Ragnarok M: Classic in Taiwan, Hong Kong and Macau and Ragnarok X: Next Generation in North, Central and South America, Oceania, England, Portugal, Spain and Ireland. The increase YoY was primarily due to increased commission paid for mobile game services related to Ragnarok M: Classic in Southeast Asia, Taiwan, Hong Kong and Macau, Ragnarok Idle Adventure Plus in Global except Taiwan, Hong Kong, Macau, China, Korea and Japan and Ragnarok X: Next Generation in North, Central and South America, Oceania, England, Portugal, Spain and Ireland.

Operating Expenses

Operating expenses were KRW 37,064 million (US$ 27,383 thousand) for the second quarter of 2025, representing a 46.6% increase QoQ from KRW 25,276 million and a 15.9% increase YoY from KRW 31,972 million. The increase QoQ was mainly due to increased advertising expenses for Ragnarok Online America Latina in Latin America, Nobunaga's Ambition: The Road to the World (Tentative English Title) in Japan, Ragnarok Idle Adventure Plus in Taiwan, Hong Kong and Macau and Ragnarok: Back to Glory in Korea. The increase YoY was also mainly due to increased advertising expenses for Ragnarok Online America Latina in Latin America, Ragnarok Idle Adventure Plus in Global, Taiwan, Hong Kong and Macau, Nobunaga's Ambition: The Road to the World (Tentative English Title) in Japan and Ragnarok: Back to Glory in Korea.

Profit Before Income Tax Expense

Profit before income tax expense was KRW 18,706 million (US$ 13,821 thousand) for the second quarter of 2025 compared with profit before income tax expense of KRW 28,450 million for the first quarter of 2025 and profit before income tax expense
of KRW 20,057 million for the second quarter of 2024.

Net Profit

As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 13,245 million (US$ 9,786 thousand) for the second quarter of 2025 compared with net profit attributable to parent company of KRW 22,038 million for the first quarter of 2025 and a net profit attributable to parent company of KRW 12,569 million for the second quarter of 2024.

Liquidity

The balance of cash and cash equivalents and short-term financial instruments was KRW 576,840 million (US$ 426,184 thousand) as of June 30, 2025.

Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,353.50 to US$ 1.00, the noon buying rate in effect on June 30, 2025 as quoted by the Federal Reserve Bank of New York.

GRAVITY BUSINESS UPDATES

Ragnarok Online IP-based Games

Ragnarok: The Promised Adventure (Tentative English Title), an Idle MMORPG Mobile and WeChat Mini Programs game

Ragnarok: The Promised Adventure (Tentative English Title, Chinese title: 仙境传说之约定好的冒险) officially received an ISBN from Chinese government on May 21, 2025 and will be launched in China on October 1, 2025.

Ragnarok X: Next Generation, an MMORPG Mobile and PC game

Ragnarok X: Next Generation was officially launched in North, Central and South America, Oceania, England, Portugal, Spain and Ireland on May 8, 2025 and will be launched in Europe (except England, Portugal, Spain and Ireland), Middle East, Africa and South Asia in October 2025.

Ragnarok Online America Latina, an MMORPG PC game

Ragnarok Online America Latina was officially launched in Latin America on May 28, 2025.

Ragnarok Idle Adventure Plus, a Vertical Idle MMORPG Mobile game

Ragnarok Idle Adventure Plus was officially launched in Taiwan, Hong Kong and Macau on May 21, 2025 and will be launched in Korea on August 28, 2025.

Poring Rush, an Idle RPG Mobile game

Poring Rush was officially launched in Korea on June 12, 2025.

Ragnarok Zero, an MMORPG PC game

Ragnarok Zero was officially launched in Taiwan, Hong Kong and Macau on July 3, 2025.

Ragnarok: Twilight, an Idle MMOARPG Mobile game

Ragnarok: Twilight was officially launched in Taiwan, Hong Kong and Macau on July 3, 2025. It will be launched in China on August 15, 2025 and is underway for its launch in Southeast Asia in the second half of 2025.

Ragnarok Crush, a Strategy Action Puzzle RPG Mobile game

Ragnarok Crush was officially launched in Global except China and Japan on July 17, 2025.

Ragnarok V: Returns, a 3D MMORPG Mobile and PC game

Ragnarok V: Returns was officially launched in Global on August 7, 2025.

Ragnarok M: Classic, an MMORPG Mobile and PC game

Ragnarok M: Classic will be launched in North and South America, Europe, Middle East and Africa on September 3, 2025.

Ragnarok: The New World, an MMORPG Mobile and PC game

Ragnarok: The New World is planned to be launched in Taiwan, Hong Kong and Macau in the fourth quarter of 2025.

PROJECT ABYSS, an MMOARPG Mobile and PC game

PROJECT ABYSS is underway for its launch in Southeast Asia in the fourth quarter of 2025.

Ragnarok Libre, a Time Effective MMORPG Line game

Ragnarok Libre will be launched in Global except Korea, China and Japan on August 11, 2025.

I'm the Hero of This Ragnarok! (Tentative English Title), an SLG Simulation Mobile game

I'm the Hero of This Ragnarok! (Tentative English Title) is scheduled to be launched in Korea in September 2025.

Ragnarok Online IP-based Blockchain Game

Ragnarok Landverse, an MMORPG Blockchain and PC game

Ragnarok Landverse will be launched in North and South America in the fourth quarter of 2025.

Other IP-based games

Gunbound, an MMO Turn-based Artillery PC game

Gunbound was officially launched in Southeast Asia and Latin America on June 10, 2025.

Nobunaga's Ambition: The Road to the World (Tentative English Title), an MMO History Strategy Simulation Mobile game

Nobunaga's Ambition: The Road to the World (Tentative English Title) was officially launched in Japan on June 18, 2025.

Dragonica Origin, an MMORPG PC game

Dragonica Origin was officially launched in Southeast Asia on July 16, 2025.

Meow Star Acres 2, a Farm Simulation Mobile game

Meow Star Acres 2 will be launched in Global in the fourth quarter of 2025.

Schop Hero, a New Fresh Whole Digging Puzzle RPG Mobile game

Schop Hero will be launched in Japan in the third quarter of 2025.

Chess Rumble, a Collectible Tactical RPG Mobile game

Chess Rumble is planned to be launched in Global except Korea and Japan in the third quarter of 2025.

Investor Presentation

Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of the second quarter in 2025 and Gravity’s business plan. The presentation can be found on the Company’s website under the IR Archives section at https://www.gravity.co.kr/en/ir/updates. Korean and Japanese versions of the presentation are also provided on the website.

About GRAVITY Co., Ltd. ---------------------------------------------------

Gravity is a developer and publisher of online and mobile games. Gravity's principal product, Ragnarok Online, is a popular online game in many markets, including Japan and Taiwan, and is currently commercially offered in 91 markets. For more information about Gravity, please visit http://www.gravity.co.kr.

Forward-Looking Statements:

Certain statements in this press release may include, in addition to historical information, “forward-looking statements” within the meaning of the “safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe”, “project,” or “continue” or the negative thereof or other similar words, although not all forward-looking statements contain these words. Investors should consider the information contained in our submissions and filings with the United States Securities and Exchange Commission (the “SEC”), including our annual report for the fiscal year ended December 31, 2024 on Form 20-F, together with such other documents that we may submit to or file with the SEC from time to time, on Form 6-K. The forward-looking statements speak only as of this press release and we assume no duty to update them to reflect new, changing or unanticipated events or circumstances.

Contact:

Mr. Heung Gon Kim
Chief Financial Officer
Gravity Co., Ltd.
Email: kheung@gravity.co.kr

Ms. Jin Lee
Ms. Yujin Oh
IR Unit
Gravity Co., Ltd.
Email: ir@gravity.co.kr
Telephone: +82-2-2132-7800

GRAVITY Co., Ltd.
Consolidated Statements of Financial Position

(In millions of KRW and thousands of US$)

	As of
	31-Dec-24				30-Jun-25
	KRW		US$		KRW		US$
	(audited)		(unaudited)		(unaudited)		(unaudited)
Assets
Current assets:
Cash and cash equivalents		228,898		169,116		215,441		159,173
Short-term financial instruments		324,304		239,604		361,399		267,011
Accounts receivable, net		81,152		59,957		81,368		60,117
Other receivables, net		1,572		1,161		1,948		1,439
Prepaid expenses		8,115		5,996		17,768		13,127
Other current financial assets		6,602		4,878		4,759		3,516
Other current assets		2,967		2,192		3,975		2,937
Total current assets		653,610		482,904		686,658		507,320
Property and equipment, net		9,957		7,356		10,703		7,908
Intangible assets, net		7,057		5,214		8,941		6,606
Deferred tax assets		5,617		4,150		6,498		4,801
Other non-current financial assets		1,767		1,306		1,686		1,246
Other non-current assets		8,451		6,245		7,966		5,885
Total assets		686,459		507,175		722,452		533,766
Liabilities and Equity
Current liabilities:
Accounts payable		67,930		50,188		82,024		60,601
Deferred revenue		26,761		19,772		20,868		15,418
Withholdings		1,588		1,173		1,599		1,181
Accrued expense		2,651		1,959		2,181		1,611
Income tax payable		6,507		4,808		7,667		5,665
Other current liabilities		3,212		2,373		3,653		2,699
Total current liabilities		108,649		80,273		117,992		87,175
Long-term account payables		220		163		623		460
Long-term deferred revenue		2,572		1,900		880		650
Other non-current liabilities		5,361		3,961		5,262		3,889
Deferred tax liabilities		1,294		956		1,290		953
Total liabilities		118,096		87,253		126,047		93,127
Share capital		3,474		2,567		3,474		2,567
Capital surplus		26,979		19,933		26,979		19,933
Other components of equity		23,801		17,585		16,601		12,265
Retained earnings		513,418		379,326		548,701		405,394
Equity attributable to owners of the Parent Company		567,672		419,411		595,755		440,159
Non-controlling interest		691		511		650		480
Total equity		568,363		419,922		596,405		440,639
Total liabilities and equity		686,459		507,175		722,452		533,766

* For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,353.50 to US$ 1.00, the noon buying rate in effect on June 30, 2025 as quoted by the Federal Reserve Bank of New York.

GRAVITY Co., Ltd.
Consolidated Statements of Comprehensive Income

(In millions of KRW and thousands of US$ except for share and ADS data)

	Three months ended								Six months ended
	31-Mar-25		30-Jun-24		30-Jun-25				30-Jun-24		30-Jun-25
	(KRW)		(KRW)		(KRW)		(US$)		(KRW)		(KRW)		(US$)
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues:
Online games		18,806		19,445		21,971		16,233		37,510		40,777		30,127
Mobile games		115,486		99,019		144,003		106,393		197,567		259,489		191,717
Other revenue		3,172		4,503		4,766		3,521		7,669		7,938		5,865
Total net revenue		137,464		122,967		170,740		126,147		242,746		308,204		227,709
Cost of revenue		87,458		76,006		114,006		84,231		149,634		201,464		148,847
Gross profit		50,006		46,961		56,734		41,916		93,112		106,740		78,862
Operating expenses:
Selling, general and administrative expenses		21,859		28,108		33,509		24,757		43,855		55,368		40,907
Research and development		3,431		4,286		3,291		2,431		7,887		6,722		4,966
Others, net		(14)		(422)		264		195		(488)		250		185
Total operating expenses		25,276		31,972		37,064		27,383		51,254		62,340		46,058
Operating profit		24,730		14,989		19,670		14,533		41,858		44,400		32,804
Finance income(costs):
Finance income		10,717		8,867		2,651		1,959		15,164		13,368		9,877
Finance costs		(6,997)		(3,799)		(3,615)		(2,671)		(4,467)		(10,612)		(7,840)
Profit before income tax		28,450		20,057		18,706		13,821		52,555		47,156		34,841
Income tax expense		6,372		7,476		5,486		4,053		13,091		11,858		8,761
Profit for the year		22,078		12,581		13,220		9,768		39,464		35,298		26,080
Profit attributable to:
Non-controlling interest		40		12		(25)		(18)		29		15		12
Owners of Parent company		22,038		12,569		13,245		9,786		39,435		35,283		26,068
Earnings per share
- Basic and diluted		3,171		1,809		1,906		1.41		5,675		5,077		3.75
Weighted average number of shares outstanding
- Basic and diluted		6,948,900		6,948,900		6,948,900		6,948,900		6,948,900		6,948,900		6,948,900
Earnings per ADS
- Basic and diluted		3,171		1,809		1,906		1.41		5,675		5,077		3.75

* For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,353.50 to US$1.00, the noon buying rate in effect on June 30, 2025 as quoted by the Federal Reserve Bank of New York.
(1) Each ADS represents one common share.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.