Gravity (GRVY) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached KRW 138 billion, up 6% QoQ and 14.8% YoY; operating profit was KRW 25 billion, up 55% QoQ but down 8% YoY, driven by new mobile game launches and marketing efficiency.

• Net profit attributable to parent was KRW 22.1 billion, down 4.6% QoQ and 18% YoY.

• Major launches included Ragnarok M: Classic in Southeast Asia and Taiwan, and Ragnarok Idle Adventure Plus globally, fueling top-line growth.

• Subsidiary established in Malaysia to reinforce localization and publishing, supporting Southeast Asia expansion.

• Growth supported by successful launches and regional expansion.

Financial highlights

• Gross profit for Q1 2025 was KRW 50 billion; gross margin was 36.4%.

• Cash and cash equivalents plus short-term financial instruments totaled KRW 577.2 billion at quarter-end.

• Revenue breakdown: 53.1% from Southeast Asia & others, 22.7% from Korea/Japan/China, 16.1% from Taiwan/HK/Macau, 8.1% from the Americas.

• Mobile game revenue rose 9.4% QoQ and 17.2% YoY, reaching KRW 115.5 billion.

• Platform mix: 84.0% mobile, 13.7% PC, 2.3% others.

Outlook and guidance

• Multiple new Ragnarok IP-based games scheduled for launch in Q2 and H2 2025 across global markets.

• Focus on strengthening Ragnarok IP's global competitiveness and entering Western markets.

• Expansion into blockchain gaming and new regional subsidiaries to support growth.