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Jun 30, 2025
Gravity Q2 2025 Earnings Report
Gravity reported strong Q2 2025 revenue growth driven by mobile games, but net income declined quarter-over-quarter due to higher costs.
Key Takeaways
Gravity generated $126.1 million in revenue during Q2 2025, up significantly YoY, with mobile games as the primary contributor. Despite the revenue surge, operating profit and net income decreased from the previous quarter due to increased advertising and cost of revenue.
Total revenue reached $126.1 million, up 38.9% YoY.
Mobile games brought in $106.4 million, representing the majority of revenue.
Net income attributable to the parent company was $9.8 million, down 39.9% QoQ.
Cash and short-term investments totaled $426.2 million at quarter-end.
Revenue by Segment
Forward Guidance
Gravity plans further expansion of the Ragnarok IP globally with several launches expected in Q3 and Q4, while continuing to face rising marketing expenses.
Positive Outlook
- Planned launch of Ragnarok M: Classic in North and South America in Q3 2025.
- Multiple new Ragnarok titles to be released globally throughout H2 2025.
- Growth from recently launched titles in Latin America and Southeast Asia.
- Continued expansion of Ragnarok franchise across platforms.
- Strong liquidity position to support development and operations.
Challenges Ahead
- Net income declined sharply QoQ due to higher marketing spend.
- Finance income dropped significantly compared to Q1.
- Cost of revenue rose by 30% sequentially.
- Increased dependence on few successful game launches.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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