Earnings release
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GRA VITY REPORTS THIRD QUARTER OF 2025 RESULTS AND BUSINESS UPDATES Seoul, South Korea – November 7, 2025 – GRA VITY 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 third quarter ended September 30, 2025, prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and business updates. THIRD QUARTER 2025 HIGHLIGHTS • Total revenues were KRW 138,894 million (US$ 98,883 thousand), representing an 18.7% decrease from the second quarter ended June 30, 2025 (“QoQ”) and an 8.2% increase from the third quarter ended September 30, 2024 (“YoY”). • Operating profit was KRW 21,276 million (US$ 15,147 thousand), representing an 8.2% increase QoQ and a 22.8% decrease YoY . • Profit before income tax expense was KRW 27,207 million (US$ 19,369 thousand), representing a 45.4% increase QoQ and a 4.3% decrease YoY . • Net profit attributable to parent company was KRW 19,869 million (US$ 14,145 thousand), representing a 50.0% increase QoQ and an 11.2% decrease YoY . REVIEW OF THIRD QUARTER 2025 FINANCIAL RESULTS Revenues Online game revenues for the third quarter of 2025 were KRW 25,968 million (US$ 18,487 thousand), representing an 18.2% increase QoQ from KRW 21,971 million and a 32.1% increase YoY from KRW 19,657 million. The increase QoQ was mainly attributable to initial revenue from Ragnarok Zero launched in Taiwan, Hong Kong and Macau on July 3, 2025. The increase YoY was mainly due to initial revenues from Ragnarok Online America Latina launched in Latin America on May 28, 2025 and Ragnarok Zero launched in Taiwan, Hong Kong and Macau on July 3, 2025. Mobile game revenues were KRW 109,571 million (US$ 78,007 thousand) for the third quarter of 2025, representing a 23.9% decrease QoQ from KRW 144,003 million and a 6.9% increase YoY from KRW 102,524 million. The decrease QoQ was mainly attributable to decreased revenues from Ragnarok M: Classic launched in Southeast Asia and Taiwan, Hong Kong and Macau. Such decrease was partially offset by initial revenue from Ragnarok: Twilight launched in Taiwan, Hong Kong and Macau on July 3, 2025, increased revenue from Ragnarok X: Next Generation launched in North, Central and South America, Oceania, England, Portugal, Spain and Ireland and initial revenues from Ragnarok M: Classic Global launched in North and South America, Europe, Middle East, certain regions of North Africa and Oceania on September 3, 2025. The increase YoY was mainly due to initial revenues from Ragnarok M: Classic launched in Taiwan, Hong Kong and Macau on April 16, 2025 and Southeast Asia on February 14, 2025, Ragnarok: Twilight launched in Taiwan, Hong Kong and Macau on July 3, 2025 and Ragnarok X: Next Generation launched in North, Central and South America, Oceania, England, Portugal, Spain and Ireland on May 8, 2025. This increase was partially offset by decreased revenues from Ragnarok Origin in North, Central and South America, Southeast Asia and Taiwan, Hong Kong and Macau and THE RAGNAROK in Taiwan, Hong Kong and Macau.
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Other revenues were KRW 3,355 million (US$ 2,389 thousand) for the third quarter of 2025, representing a 29.6% decrease QoQ from KRW 4,766 million and a 45.8% decrease YoY from KRW 6,195 million.
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Cost of Revenue Cost of revenue was KRW 88,542 million (US$ 63,036 thousand) for the third quarter of 2025, representing a 22.3% decrease QoQ from KRW 114,006 million and a 16.1% increase YoY from KRW 76,261 million. The decrease QoQ was mainly due to decreased commission paid for mobile game services related to Ragnarok M: Classic launched in Southeast Asia and Taiwan, Hong Kong and Macau. The increase YoY was primarily due to increased commission paid for mobile game services related to Ragnarok M: Classic in Taiwan, Hong Kong and Macau and Southeast Asia, Ragnarok: Twilight in Taiwan, Hong Kong and Macau and Ragnarok X: Next Generation in North, Central and South America, Oceania, England, Portugal, Spain and Ireland. Operating Expenses Operating expenses were KRW 29,076 million (US$ 20,700 thousand) for the third quarter of 2025, representing a 21.6% decrease QoQ from KRW 37,064 million and an 18.5% increase YoY from KRW 24,539 million. The decrease QoQ was mainly due to decreased advertising expenses for Ragnarok Online America Latina in Latin America, Ragnarok: Back to Glory in Korea and Nobunaga's Ambition: The Road to the World in Japan and research and development expenses. The increase YoY was mainly due to increased advertising expenses for Ragnarok Idle Adventure Plus in Korea and Global and Nobunaga's Ambition: The Road to the World in Japan, salaries and commission paid. Profit Before Income Tax Expense Profit before income tax expense was KRW 27,207 million (US$ 19,369 thousand) for the third quarter of 2025 compared with profit before income tax expense of KRW 18,706 million for the second quarter of 2025 and profit before income tax expense of KRW 28,415 million for the third quarter of 2024. Net Profit As a result of the foregoing factors, Gravity recorded a net profit attributable to parent company of KRW 19,869 million (US$ 14,145 thousand) for the third quarter of 2025 compared with net profit attributable to parent company of KRW 13,245 million for the second quarter of 2025 and a net profit attributable to parent company of KRW 22,385 million for the third quarter of 2024. Liquidity The balance of cash and cash equivalents and short-term financial instruments was KRW 609,927 million (US$ 434,226 thousand) as of September 30, 2025. Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the exchange rate of KRW 1,404.63 to US$ 1.00, the noon buying rate in effect on September 30, 2025 as quoted by the Federal Reserve Bank of New York.
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GRA VITY BUSINESS UPDATES Ragnarok Online IP-based Games • Ragnarok Idle Adventure Plus, a Vertical Idle MMORPG Mobile game Ragnarok Idle Adventure Plus officially received an ISBN from Chinese government on September 24, 2025 and was officially launched in Korea on August 28, 2025. • Ragnarok 3, an MMORPG Mobile and PC game Ragnarok 3 officially received an ISBN from Chinese government on October 21, 2025 and will be launched in Global within 2026. • Ragnarok Libre, a Time Effective MMORPG Line game Ragnarok Libre was officially launched in Global (except Korea, China and Japan) on August 11, 2025. • Ragnarok: Twilight, an Idle MMOARPG Mobile game Ragnarok: Twilight was officially launched in China on August 15, 2025 and Southeast Asia (except Vietnam) on October 23, 2025. • Ragnarok M: Classic Global, an MMORPG Mobile and PC game Ragnarok M: Classic Global was officially launched in North and South America, Europe, Middle East, certain regions of North Africa and Oceania on September 3, 2025. • Ragnarok: The Promised Adventure (Tentative English Title), an Adventure MMORPG Mobile and WeChat game Ragnarok: The Promised Adventure (Tentative English Title) was officially launched in China on September 25, 2025. • THE RAGNAROK, an MMORPG Mobile and PC game THE RAGNAROK was officially launched on WeChat (H5) Mini Programs in China on September 20, 2025. • Ragnarok X: Next Generation, an MMORPG Mobile and PC game Ragnarok X: Next Generation will be launched in Europe (except England, Portugal, Spain and Ireland), Middle East and North Africa in the first half of 2026. • Ragnarok: The New World, an MMORPG Mobile and PC game Ragnarok: The New World will be launched in Taiwan, Hong Kong and Macau in the first quarter of 2026. • Ragnarok Abyss, an MMOARPG Mobile and PC game
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Ragnarok Abyss is underway for its launch in Southeast Asia in the first half of 2026. • Ragnarok: Back to Glory, an MMORPG Mobile game Ragnarok: Back to Glory is scheduled to be launched in China in the fourth quarter of 2025.
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• Ragnarok Endless Trails (Tentative English Title), a Battle Royal Mobile game Ragnarok Endless Trails (Tentative English Title) is planned to be launched in Southeast Asia in the first quarter of 2026. Ragnarok Online IP-based Blockchain Game • Ragnarok Landverse Genesis America, an MMORPG Blockchain and PC game Ragnarok Landverse Genesis America is scheduled to be launched in North and South America on December 11, 2025. Other IP-based Games • Schop Hero, a New Fresh Whole Digging Puzzle RPG Mobile game Schop Hero was officially launched in Japan on September 17, 2025. • Chess Rumble, a Collectible Tactical RPG Mobile game Chess Rumble was officially launched in Global (except Korea and Japan) on October 15, 2025. • THE GOOD OLD DAYS, a Metroidvania Adventure Console and PC game THE GOOD OLD DAYS was officially launched in Global on October 23, 2025. • Meow Star Acres 2, a Farm Simulation Mobile game Meow Star Acres 2 was soft-launched in Canada, Australia, Philippines and Malaysia on October 28, 2025. • Aeruta, an Action RPG PC game Aeruta was officially launched on Steam in Global on November 6, 2025. • Hashire HEBEREKE: EX, a Racing and Remake Console and PC game Hashire HEBEREKE: EX is underway for its launch in Global in the first half of 2026. • the Game of LIFE for Nintendo Switch, a Board and Party Console game the Game of LIFE for Nintendo Switch will be launched in Asia (except Japan) on December 18, 2025. Expansion of Other IP-business Gravity Co., Ltd. has signed a publishing agreement of the Game of LIFE for Nintendo Switch, a Board and
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Party Console game based on the Game of LIFE's IP, in Asia (except Japan) with TOMY COMPANY , LTD.
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Investor Presentation Gravity issued an investor presentation. The presentation contains the Company’ s recent business updates, results of the third 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 GRA VITY 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 markets, 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, 2024 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: kheung@gravity.co.kr Ms. Jin Lee Ms. Yujin Oh IR Unit Gravity Co., Ltd. Email: ir@gravity.co.kr Telephone: +82-2-2132-7800
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GRA VITY Co., Ltd. Consolidated Statements of Financial Position (In millions of KRW and thousands of US$)
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As of 31-Dec-24 30-Sep-25 KRW US$ KRW US$ (audited) (unaudited) (unaudited) (unaudited) Assets Current assets: Cash and cash equivalents 228,898 162,960 197,348 140,498 Short-term financial instruments 324,304 230,882 412,579 293,728 Accounts receivable, net 81,152 57,775 59,984 42,704 Other receivables, net 1,572 1,119 2,738 1,949 Prepaid expenses 8,115 5,777 15,734 11,202 Other current financial assets 6,602 4,700 4,158 2,960 Other current assets 2,967 2,112 4,777 3,401 Total current assets 653,610 465,325 697,318 496,442 Property and equipment, net 9,957 7,089 10,671 7,597 Intangible assets, net 7,057 5,024 8,062 5,740 Deferred tax assets 5,617 3,999 6,461 4,600 Other non-current financial assets 1,767 1,258 1,795 1,278 Other non-current assets 8,451 6,017 6,544 4,659 Total assets 686,459 488,712 730,851 520,316 Liabilities and Equity Current liabilities: Accounts payable 67,930 48,361 68,986 49,113 Deferred revenue 26,761 19,052 19,695 14,021 Withholdings 1,588 1,131 1,408 1,002 Accrued expense 2,651 1,887 2,511 1,788 Income tax payable 6,507 4,633 5,184 3,691 Other current liabilities 3,212 2,287 3,655 2,602 Total current liabilities 108,649 77,351 101,439 72,217 Long-term account payables 220 157 623 444 Long-term deferred revenue 2,572 1,831 506 360 Other non-current liabilities 5,361 3,817 5,388 3,837 Deferred tax liabilities 1,294 921 1,295 922 Total liabilities 118,096 84,077 109,251 77,780 Share capital 3,474 2,473 3,474 2,473 Capital surplus 26,979 19,207 26,979 19,207 Other components of equity 23,801 16,945 21,948 15,625 Retained earnings 513,418 365,518 568,570 404,783 Equity attributable to owners of the Parent Company 567,672 404,143 620,971 442,088 Non-controlling interest 691 492 629 448 Total equity 568,363 404,635 621,600 442,536 Total liabilities and equity 686,459 488,712 730,851 520,316
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* For convenience purposes only, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,404.63 to US$ 1.00, the noon buying rate in effect on September 30, 2025 as quoted by the Federal Reserve Bank of New York.
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GRA VITY Co., Ltd. Consolidated Statements of Comprehensive Income (In millions of KRW and thousands of US$ except for share and ADS data) Three months ended Nine months ended 30-Jun-25 30-Sep-24 30-Sep-25 30-Sep-24 30-Sep-25 (KRW) (KRW) (KRW) (US$) (KRW) (KRW) (US$) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Online games 21,971 19,657 25,968 18,487 57,167 66,745 47,518 Mobile games 144,003 102,524 109,571 78,007 300,090 369,060 262,745 Other revenue 4,766 6,195 3,355 2,389 13,865 11,293 8,041 Total net revenue 170,740 128,376 138,894 98,883 371,122 447,098 318,304 Cost of revenue 114,006 76,261 88,542 63,036 225,895 290,006 206,464 Gross profit 56,734 52,115 50,352 35,847 145,227 157,092 111,840 Operating expenses: Selling, general and administrative expenses 33,509 20,325 26,675 18,991 64,181 82,043 58,409 Research and development 3,291 3,706 2,149 1,530 11,594 8,871 6,316 Others, net 264 508 252 179 18 502 357 Total operating expenses 37,064 24,539 29,076 20,700 75,793 91,416 65,082 Operating profit 19,670 27,576 21,276 15,147 69,434 65,676 46,758 Finance income(costs): Finance income 2,651 5,924 3,283 2,337 21,088 16,651 11,854 Finance costs (3,615) (5,085) 2,648 1,885 (9,552) (7,964) (5,670) Profit before income tax 18,706 28,415 27,207 19,369 80,970 74,363 52,942 Income tax expense 5,486 6,080 7,362 5,241 19,172 19,220 13,683 Profit for the year 13,220 22,335 19,845 14,128 61,798 55,143 39,259 Profit attributable to: Non-controlling interest (25) (50) (24) (17) (21) (9) (6) Owners of Parent company 13,245 22,385 19,869 14,145 61,819 55,152 39,265 Earnings per share - Basic and diluted 1,906 3,221 2,859 2.04 8,896 7,937 5.65 Weighted average number of shares outstanding - Basic and diluted 6,948,900 6,948,900 6,948,900 6,948,900 6,948,900 6,948,900 6,948,900 Earnings per ADS - Basic and diluted 1,906 3,221 2,859 2.04 8,896 7,937 5.65
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* For convenience, the KRW amounts are expressed in U.S. dollars at the rate of KRW 1,404.63 to US$1.00, the noon buying rate in effect on September 30, 2025 as quoted by the Federal Reserve Bank of New York. (1) Each ADS represents one common share.
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SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GRA VITY CO., LTD. By: /s/ Heung Gon Kim Name: Heung Gon Kim Title: Chief Financial Officer