Gravity Reports Third-Quarter Revenue of KRW 197,146 Million, Up 41.9% Year Over Year
Key Facts
Gravity reported unaudited results on November 13 for the quarter ended September 30, 2026, with revenue of KRW 197,146 million. Revenue rose 21.8% from the second quarter, when it was KRW 161,884 million, and increased 41.9% year over year. The results were prepared under International Financial Reporting Standards, according to the company's filing with the U.S. Securities and Exchange Commission. The quarterly growth ended a period of stable revenue recorded in the second quarter, when revenue was 5.2% below its level a year earlier. Year over year, revenue rose from KRW 138,894 million in the third quarter of 2025.
Operating profit was KRW 28,728 million, up 4.2% from the previous quarter and 35.0% from the third quarter of 2025. Net profit attributable to the parent company was KRW 21,407 million, up 7.7% year over year but down 12.1% from the second quarter. The comparison shows that revenue and operating profit growth did not prevent a quarterly decline in net profit. The company did not provide a market forecast figure in its filing for comparison with the results. Cost of revenue was KRW 141,696 million, up 60.0% year over year.
Mobile games were the largest source of revenue, generating KRW 169,387 million in the third quarter, up 31.7% from the second quarter and 54.6% from the same period last year. Gravity attributed the quarterly increase to the launches of Ragnarok: The New World, Ragnarok M: Classic and Ragnarok Origin Classic. By contrast, online game revenue fell 3.2% year over year to KRW 25,139 million. The company said the decline was linked to lower Ragnarok Online revenue in Latin America, Taiwan, Hong Kong and Macau, while revenue beginning to come from Ragnarok Zero: Global partly offset the drop. Online game revenue was KRW 25,968 million in the third quarter of 2025.
The expansion in mobile game revenue coincided with higher cost of revenue, which the company said was mainly due to commissions for launching new games. Mobile game revenue was KRW 109,571 million in the third quarter of 2025, before rising to this year's reported level. This indicates that launches supported sales but came with higher costs, while online game revenue remained under pressure in some markets. In the second quarter of 2026, Gravity said growth in Ragnarok Online revenue in Thailand and Latin America lifted online game revenue from the first quarter, partly offset by a decline in Japan. In the third quarter, online game revenue fell year over year despite the beginning contribution from Ragnarok Zero: Global.
Gravity had cash and cash equivalents and short-term financial instruments of about KRW 616,485 million as of September 30, 2026. The company said it aims to establish a subsidiary in Thailand during 2026 ahead of the launch of the RAGLAND platform in August 2028. It also plans to establish a subsidiary in Singapore during 2026, with a pilot launch of the AIWAN platform scheduled for the first quarter of 2027. The establishment dates are separate steps from the platforms' launch dates, according to the schedule in the company's filing. These plans are proceeding alongside mobile game revenue, which accounted for the largest share of quarterly sales.
In its launch schedule published in February, Gravity said the launch of Ragnarok Online 3 in China was planned for the fourth quarter of 2026, with a global launch set for 2027, while noting that the dates are subject to change. The schedule also included a launch of Ragnarok M: Classic in the Korean market in the second half of 2026. Gravity shares listed on Nasdaq closed at $67.41 on November 12, according to EL7 data. The available data did not include a documented trading range for the stock during that session. Upcoming launches, together with the performance of mobile and online games, remain among the details that will shape the company's business trajectory after its third-quarter results.