FinancialGungHo Online Entertainment
Consolidated Financial Results for FY 2025: Supplementary Material
13 Feb 20265 pages~13 min full read
GungHo Online Entertainment reported a 71.1% decline in operating profit to 5,056 million yen and an 87.4% drop in net profit to 1,407 million yen for the fiscal year ending December 31, 2025.
See it on page 1Consolidated net sales fell 10.0% year-on-year to 93,242 million yen, largely due to a slowdown in the flagship title Puzzle & Dragons caused by a reduction in high-profile character collaborations.
See it on page 2The company recorded a quarterly operating loss of 811 million yen in Q4 2025, driven by increased labor costs from the full acquisition of Alim Co., Ltd. and higher bonus payments.
See it on page 2Despite overall declines, subsidiary Gravity Co., Ltd. achieved revenue growth through successful regional releases of Ragnarok M: Classic and Ragnarok: Twilight in Southeast Asia, Taiwan, Hong Kong, and China.
See it on page 1GungHo maintains a strong liquidity position with 130,474 million yen in cash and deposits, which the company intends to use to support long-term service titles and new global releases.
See it on page 3The company expanded its multi-platform footprint in December 2025 with the global launch of LET IT DIE: INFERNO on PlayStation 5 and PC.
See it on page 3GungHo Online Entertainment reported a significant decline in financial performance for the fiscal year ending December 31, 2025. Consolidated net sales fell 10.0% year-on-year to 93,242 million yen, while operating profit plummeted 71.1% to 5,056 million yen. The downturn was primarily driven by a slowdown in non-consolidated sales from the flagship title Puzzle & Dragons, which suffered from fewer high-profile character collaborations compared to the previous year. Profitability was further pressured by rising labor costs following the full acquisition of Alim Co., Ltd. and increased bonus payments in the fourth quarter, leading to a quarterly operating loss of 811 million yen in the final period.
The geographic scope of operations remains centered in Japan, though subsidiary Gravity Co., Ltd. provided a strategic buffer through successful releases in Southeast Asia, Taiwan, Hong Kong, and China. While Puzzle & Dragons remains the company’s core asset with 63 million downloads in Japan as of April 2025, newer titles like Ragnarok M: Classic and Ragnarok: Twilight contributed to Gravity’s year-on-year revenue growth. Additionally, the company expanded its multi-platform presence with the December 2025 global launch of LET IT DIE: INFERNO on PlayStation 5 and PC.
Methodologically, the findings are based on consolidated financial statements and internal download tracking data. The results highlight a transition period for the company, characterized by a shifting sales mix and higher fixed costs. Despite the decline in annual net profit attributable to owners—which dropped 87.4% to 1,407 million yen—the company maintains a strong liquidity position with 130,474 million yen in cash and deposits, supporting continued investment in its long-term service titles and new global releases.
