GRAVITY Co., Ltd. Reports Audited 2025 Financials: Revenue Up, Net Profit and EPS Decline Significantly
GRVY is trading near its 52-week low of $54.54 (13% above the low) on light trading volume (0.4× avg).
Summary
GRAVITY Co., Ltd. released its audited 2025 financial statements, showing an 11.92% increase in revenue but a 20.72% decrease in net profit and a 20.55% drop in EPS, alongside significant impairment losses.
Key Events · Earnings and Guidance · GRVY
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Consolidated Revenue Increased
Consolidated revenue for the year ended December 31, 2025, increased by 11.92% to W 560.5 billion (approximately $409.1 million USD) from W 500.8 billion in 2024, primarily driven by mobile games.
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Net Profit and EPS Declined Significantly
Consolidated profit for the year decreased by 20.72% to W 67.3 billion (approximately $49.1 million USD) in 2025 from W 84.9 billion in 2024. Basic earnings per share (EPS) also dropped by 20.55% to W 9,709 (approximately $7.09 USD) from W 12,221.
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Operating Profit Decreased
Consolidated operating profit for 2025 decreased by 8.31% to W 79.0 billion (approximately $57.7 million USD) from W 86.2 billion in the prior year.
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Significant Impairment Losses and Reversals
The company recognized a W 13.4 billion (approximately $9.8 million USD) impairment loss on its investment in Gravity Game Arise Co., Ltd. in its separate financial statements, partially offset by a W 10.58 billion (approximately $7.7 million USD) reversal for Gravity Interactive, Inc.
Analysis · GRVY · Technology
This filing provides the full audited financial results for the fiscal year ended December 31, 2025, detailing the mixed performance previously indicated. While consolidated revenue saw a healthy increase, both operating profit and net profit experienced substantial declines. A significant impairment loss on an investment in a subsidiary further impacted profitability, though partially offset by a reversal for another. The company also recognized a new current income tax expense related to the global minimum tax. Despite the profitability challenges, the balance sheet strengthened with a notable reduction in total liabilities and an improved debt ratio.
At the time of this filing, GRVY was trading at $61.83 on NASDAQ in the Technology sector, with a market capitalization of approximately $429.7M. The 52-week trading range was $54.54 to $74.75. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.