Netmarble (251270) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was KRW 651.7 billion, up 4.5% YoY but down 18.3% QoQ, with EBITDA at KRW 83.9 billion, up 2.8% YoY but down 43.7% QoQ.

• Net income surged to KRW 210.9 billion, primarily due to gains from asset disposals.

• Operating profit reached KRW 53.1 billion.

• New titles Stone Age: Idle Adventure and The Seven Deadly Sins: Origin contributed to revenue growth despite limited launch periods.

Financial highlights

• EBITDA margin was 12.9% in Q1.

• Operating expenses were KRW 598.6 billion, down 12.8% QoQ and up 4.2% YoY.

• Marketing expense ratio increased by 3.4pp QoQ due to new launches; labor expenses declined 7.9% QoQ and 2.6% YoY.

• Commission costs fell 8.3% YoY to KRW 200.9 billion, with commission rate dropping 0.8pp QoQ to 30.8% as proprietary IP revenue share increased.

• Net profit margin (controlling) was 32.2% in Q1 2026, up from -6.1% in Q4 2025.

Segment performance

• Major titles, including Jackpot World, Lotsa Slots, MARVEL Contest of Champions, and Cash Frenzy, each contributed 6–8% of revenue; new releases diversified the portfolio.

• Regional revenue: North America 41%, Korea 21%, Europe 13%, Southeast Asia 12%, Japan 7%, others 6%.

• Genre mix: Casual 40%, RPG 37%, MMORPG 16%, others 7%.