GRAVITY Co., Ltd. Reports Audited 2025 Financials: Revenue Up, Net Profit and EPS Decline Significantly
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
-
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.
-
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.
-
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.
-
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
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.