How did Gravity (NASDAQ:GRVY) perform in Q1 2026?

Gravity reported a strong Q1 2026 performance, with total consolidated revenues of KRW 161,878 million ($106.3 million), reflecting a 42.7% increase from the previous quarter and a 17.8% year-over-year rise. This growth was primarily driven by the mobile gaming segment, especially the launches of Ragnarok Origin in North and South America and the expansion of Ragnarok X: Next Generation into European markets.

What drove Gravity’s revenue growth in Q1 2026?

Gravity’s Q1 2026 revenue growth was mainly fueled by its mobile gaming segment, which saw a 54% sequential increase in revenue. This growth was supported by the successful launch of Ragnarok Origin in the Americas and the ongoing expansion of Ragnarok X: Next Generation in European markets such as France, Italy, and Germany.

How did Gravity’s operating profit perform in Q1 2026?

Gravity reported an operating profit of KRW 30,830 million for Q1 2026. The operating profit growth reflects strong top-line growth, although the company’s operating margin was impacted by an increase in the cost of revenue, mainly due to high upfront commission payments for new mobile game launches.

What was Gravity’s net profit in Q1 2026?

Gravity’s net profit attributable to the parent company for Q1 2026 stood at KRW 29,394 million. This marks a solid result for the quarter, supported by the successful launches and expansions within its mobile gaming segment, despite the high upfront costs associated with the global game expansions.

Why did Gravity’s cost of revenue increase in Q1 2026?

Gravity’s cost of revenue increased by 48.4% sequentially to KRW 110,224 million in Q1 2026. This spike was primarily attributed to initial commission payments for the heavy volume of new mobile game launches, including Ragnarok Origin and Ragnarok X: Next Generation, as the company invested heavily in global expansions.

Tech

Gravity revenue surges 43% as new Ragnarok titles reclaim mobile dominance

Written by Brie CarterPublished May. 8 2026Last Updated May. 8 2026

Gravity (NASDAQ:GRVY) reported a powerful start to 2026, with first-quarter financial results reflecting a major resurgence for its flagship Ragnarok franchise.

The South Korea-based developer posted total consolidated revenues of KRW 161,878 million ($106.3 million) for the quarter ended March 31, 2026, representing a 42.7% increase from the previous quarter and a 17.8% rise year-over-year.

The primary engine of growth was the company's mobile gaming segment, which saw revenue climb 54% sequentially.

This was driven by the high-profile launches of Ragnarok Origin in North and South America, as well as the continued expansion of Ragnarok X: Next Generation into European markets, including France, Italy, and Germany.

Gravity reported an operating profit of KRW 30,830 million for the quarter.

While top-line growth was substantial, the company’s cost of revenue also increased by 48.4% sequentially to KRW 110,224 million.

This spike was primarily attributed to initial commission payments associated with the heavy volume of new mobile game launches during the period.

Net profit attributable to the parent company stood at KRW 29,394 million.

Despite the high upfront costs of global expansion, the company’s operating leverage improved as the quarter progressed, supported by lower administrative and marketing expenses compared to the high-spend period at the end of 2025.