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Jun 30, 2025
Gravity Q4 2024 Earnings Report
Gravity reported second-quarter 2025 results.
Key Takeaways
Gravity posted Q2 2025 revenue of USD 126.15 million, operating profit of USD 14.53 million, and net profit attributable to the parent of USD 9.79 million, reflecting strong mobile game performance but lower profitability versus Q1.
Q2 revenue rose to USD 126.15 million, up 24.2% QoQ and 38.9% YoY.
Operating profit was USD 14.53 million, down 20.5% QoQ but up 31.2% YoY.
Net profit attributable to the parent was USD 9.79 million, down 39.9% QoQ and up 5.4% YoY.
Mobile games led growth with USD 106.39 million in revenue.
Revenue by Segment
Forward Guidance
Management highlighted a robust launch pipeline across regions and platforms for H2 2025, including China and global releases tied to the Ragnarok franchise, while noting higher costs and marketing spend associated with these launches.
Positive Outlook
- China launch planned for Ragnarok: The Promised Adventure on Oct 1, 2025, following ISBN approval.
- Ragnarok X: Next Generation expansion to Europe (ex-UK/Portugal/Spain/Ireland), Middle East, Africa, and South Asia in Oct 2025.
- Multiple additional titles slated for H2 2025 across regions (e.g., Ragnarok: Twilight in China Aug 15, 2025; PROJECT ABYSS in SEA Q4 2025).
- Upcoming global and regional launches (Ragnarok M: Classic in EMEA & Americas Sept 3, 2025; Ragnarok Libre Aug 11, 2025) to broaden reach.
- Healthy liquidity with USD 426.18 million in cash and short-term investments at quarter end.
Challenges Ahead
- Cost of revenue increased to USD 84.23 million due to higher mobile platform commissions.
- Operating expenses rose to USD 27.38 million on increased advertising spend.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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