Gravity (GRVY) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 reached KRW 171 billion, up 24.2% QoQ and 38.9% YoY, driven by strong performance of Ragnarok M: Classic, Ragnarok X: Next Generation, and new regional launches.

• Operating profit was KRW 20 billion, down 20.5% QoQ but up 31.2% YoY, impacted by increased marketing expenses for global expansion.

• Net profit attributable to owners was KRW 13.2 billion, down 39.9% QoQ but up 5.4% YoY.

• Major launches included Ragnarok Online America Latina and Ragnarok X: Next Generation in new regions.

• Multiple new game launches and regional events supported brand momentum and user engagement.

Financial highlights

• Gross profit for Q2 2025 was KRW 56.7 billion, with cost of revenues at KRW 114 billion.

• Cash and cash equivalents stood at KRW 576.8 billion at quarter-end.

• Total assets increased to KRW 722.5 billion, with equity at KRW 596.4 billion.

• Operating expenses rose 46.6% QoQ and 15.9% YoY, driven by higher advertising for new titles.

• Cost of revenue increased 30.4% QoQ and 50.0% YoY, mainly due to commissions for new mobile game launches.

Outlook and guidance

• Major upcoming launches include Ragnarok M: Classic in the Americas, Europe, Middle East, and Africa in September 2025, and several new titles in 4Q 2025.

• Expansion into blockchain gaming and new regions expected in the second half of 2025.

• Continued focus on expanding Ragnarok IP globally, with launches planned in China, Southeast Asia, and other key markets.

• Strategic emphasis on multi-title, IP-driven growth and entry into Western markets.