Gravity Co., Ltd. reported preliminary unaudited financial results for the quarter ended December 31 2025, showing consolidated revenue of KRW 113 billion and operating profit of KRW 12 billion. Revenue fell 18.6% from the prior quarter’s KRW 139 billion and 12.9% from the same period a year earlier, while operating profit dropped 43.8% from Q3 2025’s KRW 21 billion and 25.0% from Q4 2024’s KRW 16 billion.
The decline is largely attributable to weaker performance of the company’s flagship mobile title, Ragnarok M: Classic, which has historically driven a large share of Gravity’s mobile revenue. In Q3 2025, mobile platforms accounted for 78.9% of total revenue, underscoring the importance of that segment. The drop in Ragnarok M: Classic revenue, combined with a modest shift in the mix toward lower‑margin titles, explains the revenue contraction and the compression of operating profit.
Year‑to‑date figures for 2025 show consolidated revenue of KRW 560 billion and operating profit of KRW 77 billion, both unaudited and subject to revision. These totals reflect the cumulative impact of the Q4 decline on the annual performance, though the fact‑check report does not provide a year‑over‑year comparison for the YTD period.
Liquidity remains robust, with cash, cash equivalents and short‑term financial instruments totaling KRW 618,633 million as of December 31 2025. The strong cash position provides a buffer against short‑term revenue volatility and supports ongoing investment in the company’s game pipeline.
Management highlighted the upcoming launch of several Ragnarok IP‑based titles scheduled through 2026 as a key driver for future growth. While the preliminary results signal a short‑term revenue slowdown, the company’s pipeline and liquidity position suggest a focus on long‑term recovery and expansion.
Analysts have assigned a Hold rating to the stock, with a price target of KRW 78.00, reflecting a cautious view that balances the company’s strong cash position against the recent revenue decline.
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