Gravity Reports Preliminary Unaudited 4Q 2025 Results and Business Updates
MWN-AI** Summary
Gravity Co., Ltd. (NasdaqGM: GRVY), a South Korean developer and publisher of online and mobile games, released its preliminary unaudited financial results for Q4 2025 on February 13, 2026, revealing a challenging quarter. The company's consolidated revenue for the fourth quarter was KRW 113 billion, marking a significant decline of 18.6% quarter-over-quarter and 12.9% year-over-year. Operating profit for the period was KRW 12 billion. The primary cause of decreased earnings was attributed to lower revenues from the game Ragnarok M: Classic, which launched in several Southeast Asian markets and regions earlier in 2025.
For the full year 2025, Gravity reported tentative consolidated revenues of KRW 560 billion and operating profit of KRW 77 billion, pending final adjustments. As of December 31, 2025, the company maintained a healthy liquidity position, with cash and equivalents totaling KRW 618.6 billion.
In terms of business updates, Gravity has a robust lineup of upcoming game launches. The highly anticipated Ragnarok Online 3 is set for a release in China in Q4 2026 and globally thereafter. Several titles have already seen successful launches, including Ragnarok Monster Kitchen and Ragnarok: Rebirth, which was released in China shortly before the end of the year. The company also plans numerous launches across various regions in 2026, including Ragnarok: The New World, which has already debuted in Taiwan, Hong Kong, and Macau.
Gravity aims to leverage its popular Ragnarok franchise and expand its presence in various markets while navigating a challenging economic landscape. The company's detailed results and business strategy can be found in their investor presentation on their official website.
MWN-AI** Analysis
Gravity Co., Ltd. (NasdaqGM: GRVY) has reported its preliminary unaudited financial results for the fourth quarter of 2025, revealing a significant downturn. The consolidated revenue of KRW 113 billion represents an 18.6% decline quarter-over-quarter and a 12.9% drop year-over-year, primarily attributed to reduced revenues from the Ragnarok M: Classic title. Despite the company's storied history and popular IP, these declines suggest underlying challenges in sustaining revenue growth and engagement in an increasingly competitive mobile gaming landscape.
Looking ahead, Gravity's diverse pipeline of upcoming game launches, particularly under the Ragnarok franchise, signals a proactive approach to revitalize its operations. Notable releases include the anticipated Ragnarok Online 3 in China and "Ragnarok: The New World," which has already seen impressive downloads in Taiwan, Hong Kong, and Macau. This robust slate of new products could potentially offset recent revenue slumps if market reception is strong.
Investors should consider monitoring the results of these launches closely, particularly as many are slated for the second half of 2026. Market acceptance and immediate monetization will be crucial, especially given the historical reliance on user engagement from the Ragnarok brand.
From a liquidity standpoint, Gravity's cash position of approximately KRW 618.6 billion provides a buffer against short-term operational challenges and suggests it has the resources necessary to support marketing and development efforts for its new titles.
In summary, while Gravity faces significant near-term hurdles evidenced by its recent earnings report, the forthcoming game launches present a potential turnaround opportunity. Investors should adopt a cautiously optimistic stance, weighing the execution risk of these critical upcoming projects against the backdrop of the current market volatility.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Seoul, South Korea, Feb. 13, 2026 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or “Company”), a developer and publisher of online and mobile games based in South Korea, today announced its unaudited financial results for the fourth quarter ended December 31, 2025, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates.
PRELIMINARY UNAUDITED FOURTH QUARTER 2025 FINANCIAL RESULTS
Tentative consolidated revenue for the fourth quarter of 2025 is KRW 113 billion, and tentative consolidated operating profit is KRW 12 billion.
The preliminary fourth quarter of 2025 result is mainly attributed by decreased revenues from Ragnarok M: Classic launched in Southeast Asia on February 14, 2025 and in Taiwan, Hong Kong and Macau on April 16, 2025. Tentative consolidated revenue for the fourth quarter of 2025 represented an 18.6% decrease in QoQ and a 12.9% decrease in YoY.
Unaudited preliminary consolidated revenue for 2025 is KRW 560 billion, and the operating profit is KRW 77 billion.
The preliminary 2025 figures are unaudited and subject to revision. Final result for the fourth quarter and year ended December 31, 2025 will be provided by our annual report for the fiscal year ended December 31, 2025 on Form 20-F.
Liquidity
The balance of cash and cash equivalents and short-term financial instruments was KRW 618,633 million as of December 31, 2025.
GRAVITY BUSINESS UPDATES
Ragnarok Online IP-based Games
- Ragnarok Online 3, an MMORPG Mobile and PC game
Ragnarok Online 3 is planned to be launched in China in the fourth quarter of 2026 and is underway for its launch in Global within 2027.
- Ragnarok Monster Kitchen, a Hybrid Casual Mobile game
Ragnarok Monster Kitchen was officially launched in Global on December 11, 2025.
- Ragnarok: Rebirth, a 3D MMORPG Mobile game
Ragnarok: Rebirth was officially launched in China on December 25, 2025.
- Ragnarok X: Next Generation, an MMORPG Mobile and PC game
Ragnarok X: Next Generation was officially launched in Europe (France, Italy, Germany), Middle East, Egypt and Algeria on January 14, 2026.
- Ragnarok: Twilight, an MMORPG Mobile game
Ragnarok: Twilight (Vietnamese Title: Ragnarok: Twilight - Ch?ng V?ng) was officially launched in Vietnam on February 10, 2026, and is underway for its launch in America, Europe, Middle East and Korea within 2026. Huawei AppGallery (H5) version is planned to be launched in Southeast Asia (except Vietnam) in March 2026.
- Ragnarok: The New World, an MMORPG Mobile and PC game
Ragnarok: The New World was officially launched in Taiwan, Hong Kong and Macau on January 15, 2026. The game ranked first in both free downloads and top-grossing on Apple App Store, and also ranked first in free downloads and within the top five in top-grossing on Google Play across all three regions. Ragnarok: The New World is scheduled to be launched in Southeast Asia (except Vietnam) and Global (except China, Taiwan, Hong Kong, Macau, Japan, Korea and CIS) in the second half of 2026.
- Ragnarok Origin Classic, an MMORPG Mobile and PC game
Ragnarok Origin Classic, a renewal game of Ragnarok Origin, is scheduled to be launched in Southeast Asia (except Vietnam), Taiwan, Hong Kong, Macau and Korea in the first half of 2026.
- Ragnarok M: Classic, an MMORPG Mobile and PC game
Ragnarok M: Classic is underway for its launch in Korea in the second half of 2026.
- Ragnarok Abyss, an MMOARPG Mobile and PC game
Ragnarok Abyss is planned to be launched in Taiwan, Hong Kong and Macau in the second half of 2026.
- Ragnarok Endless Trails, a Casual, Roguelike, Survivor and Battle Royale Mobile game
Ragnarok Endless Trails will be launched in Southeast Asia on February 26, 2026.
- Ragnarok: Midgard Senki, a 2D MMORPG Mobile game
Ragnarok: Midgard Senki is currently under development and the launch date and target market will be announced.
- Ragnarok Zero: Global, an MMORPG PC game
Ragnarok Zero: Global is scheduled to be launched in Southeast Asia, Europe and Oceania in the second half of 2026.
Ragnarok Online IP-based Blockchain Game
- Ragnarok Online Landverse, an MMORPG Blockchain and PC game
Ragnarok Online Landverse was officially launched in America on December 19, 2025.
Other IP-based Games
- the Game of LIFE for Nintendo Switch, a Board and Party Console game
the Game of LIFE for Nintendo Switch was officially launched in Asia (except Japan) on December 18, 2025.
- Little Gods of the Abyss, a Puzzle Platformer Console and PC game
Little Gods of the Abyss was officially launched in Global on January 22, 2026.
- ACADEMY OF HEROES: THREE KINGDOMS, a Turn-based Collective RPG Mobile game
ACADEMY OF HEROES: THREE KINGDOMS was officially launched in Southeast Asia on January 20, 2026.
- Requiem M, an MMORPG Mobile game
Requiem M will be launched in Korea in the first half of 2026.
- Wizmans World Re: Try, a JRPG Remaster Console and PC game
Wizmans World Re: Try will be launched in Global (except Japan) on February 19, 2026.
- Jaleco Arcade Collection, a Retro Console and PC game
Jaleco Arcade Collection is planned to be launched in Global in the second half of 2026.
- LIGHT ODYSSEY, a Boss Rush Action and Souls-like Console and PC game
LIGHT ODYSSEY will be launched in Global in the second half of 2026.
- Final Knight, an Action RPG Console and PC game
Final Knight is scheduled to be launched in Global in the second half of 2026.
- Hashire HEBEREKE: EX, a Racing and Remake Console and PC game
Hashire HEBEREKE: EX is underway for its launch in Global in the second half of 2026.
- GALVATEIN: Adventure's Guild, a Simulation Console and PC game
GALVATEIN: Adventure's Guild will be launched in Global in the second half of 2026.
Investor Presentation
Gravity issued an investor presentation. The presentation contains the Company’s recent business updates, results of the fourth quarter in 2025 and Gravity’s business plan. The presentation can be found on the Company’s website under the IR Archives section at https://www.gravity.co.kr/en/ir/updates. Korean and Japanese versions of the presentation are also provided on the website.
About GRAVITY Co., Ltd. ---------------------------------------------------
Gravity is a developer and publisher of online and mobile games. Gravity's principal product, Ragnarok Online, is a popular online game in many regions, including Japan and Taiwan, and is currently commercially offered in 91 regions. For more information about Gravity, please visit http://www.gravity.co.kr.
Forward-Looking Statements:
Certain statements in this press release may include, in addition to historical information, “forward-looking statements” within the meaning of the “safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe”, “project,” or “continue” or the negative thereof or other similar words, although not all forward-looking statements contain these words. Investors should consider the information contained in our submissions and filings with the United States Securities and Exchange Commission (the “SEC”), including our annual report for the fiscal year ended December 31, 2025 on Form 20-F, together with such other documents that we may submit to or file with the SEC from time to time, on Form 6-K. The forward-looking statements speak only as of this press release and we assume no duty to update them to reflect new, changing or unanticipated events or circumstances.
Contact:
Mr. Heung Gon Kim
Chief Financial Officer
Gravity Co., Ltd.
Email: [email protected]
Ms. Jin Lee
Ms. Yujin Oh
IR Unit
Gravity Co., Ltd.
Email: [email protected]
Telephone: +82-2-2132-7800
FAQ**
How does GRAVITY Co. Ltd. GRVY plan to address the 18.6% decrease in quarterly revenue compared to the previous quarter reported for Q4 2025, and what strategies are in place to improve future financial performance?
With several new game launches scheduled for 2026, including Ragnarok M: Classic in Korea, how does GRAVITY Co. Ltd. GRVY anticipate these titles will impact their overall market position and revenue streams?
Given the competition in the mobile gaming industry, what unique features or strategies does GRAVITY Co. Ltd. GRVY intend to implement to differentiate its RPG offerings from other developers in the market?
Can GRAVITY Co. Ltd. GRVY provide more insight into the anticipated global launch strategy for Ragnarok: The New World and its expected contribution to the company's financial performance in 2026?
**MWN-AI FAQ is based on asking OpenAI questions about GRAVITY Co. Ltd. (NASDAQ: GRVY).
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