Gravity (NASDAQ:GRVY), a developer and publisher of online and mobile games, today announced its consolidated financial results for the fiscal year ended December 31, 2025.
The company’s performance was highlighted by double-digit top-line growth as its "Ragnarok" intellectual property continues to show strong resonance across diverse global markets, particularly in Latin America and Southeast Asia.
For the full year 2025, Gravity reported record revenues of KRW 560,548 million (US$388 million), representing an 11.9% increase over 2024.
Mobile game revenue, the company's largest segment, rose 12.2% to KRW 455,235 million.
This growth was primarily catalyzed by the February launch of Ragnarok M: Classic in Southeast Asia and the May rollout of Ragnarok X: Next Generation across North and South America, Oceania, and parts of Europe.
Online game revenue also saw a healthy uptick of 17.3%, driven by the launch of Ragnarok Zero in Taiwan, Hong Kong, and Macau.
While revenues reached new heights, the company faced increased operational costs associated with its aggressive global expansion.
Cost of revenues rose 18.7% to KRW 364,268 million, largely due to higher commission payments linked to mobile game services in the Southeast Asian and Greater China regions.
Consequently, gross profit remained relatively flat, increasing 1.2% to KRW 196,280 million.
Operating income for 2025 was KRW 79,030 million, compared to KRW 86,189 million in the prior year.
The decrease was attributed to an 8.8% rise in SG&A expenses, which reached KRW 117,250 million due to elevated advertising spend for new title launches and increased personnel costs.
Net profit for the year was KRW 67,309 million, impacted by non-operating factors including unrealized foreign currency losses.
Despite the rise in expenses, Gravity maintains one of the strongest liquidity positions in the mid-cap gaming sector.
As of December 31, 2025, the balance of cash, cash equivalents, and short-term financial instruments totaled KRW 618,633 million (US$428.3 million).
This substantial capital reserve provides the company with significant flexibility to fund future game development, secure new licenses, and explore strategic investment opportunities throughout 2026.