KRAFTON (259960) Q1 2026 earnings summary

Executive summary

• Achieved record-high Q1 revenue of KRW 1.4tn, up 57% year-over-year, with PUBG IP franchise revenue exceeding KRW 1tn for the first time in a quarter.

• Operating profit reached KRW 561.6bn, up 22.8% year-over-year, and net profit was KRW 514.1bn, up 38.4% year-over-year.

• Growth driven by higher user engagement, expanded monetization, and strong performance across core services.

Financial highlights

• Revenue: KRW 1,371.4bn (+56.9% YoY, +49.1% QoQ).

• Operating profit: KRW 561.6bn (+22.8% YoY, +22,980.1% QoQ).

• Net profit: KRW 514.1bn (+38.4% YoY, returned to profit QoQ).

• Adjusted EBITDA: KRW 622.9bn (+23.3% YoY, +958.7% QoQ).

• Operating expenses: KRW 809.9bn (+94.3% YoY, -11.7% QoQ), with a notable rise in one-off personnel expenses.

Outlook and guidance

• Early access for Subnautica 2 remains on track, with launch planned as originally scheduled.

• Q2 revenue momentum expected to remain strong, driven by PUBG collaborations and mobile sales, with positive outlook for sustaining growth.

• Plans to evolve PUBG into a content platform, expand in emerging and Western markets, and prepare for PUBG 2.0.

• inZOI to become a UGC-driven live service IP, with console porting and AI scripting mod tools planned for 2Q–3Q 2026.

• Continued investment in AI to enhance player experiences and operational efficiency.