FY 2026 2Q Consolidated Financial Results: Supplementary Material

GungHo Online Entertainment’s consolidated financial results for the second quarter of fiscal year 2026 reflect a period of moderate contraction in sales and operating profit compared to the previous quarter. The company reported net sales of 25,164 million yen, representing a quarter-on-quarter decrease of 1,430 million yen. Operating profit for the same period reached 2,686 million yen, with an operating profit margin of 10.7 percent, down from 11.9 percent in the first quarter. Despite these declines, the company maintained a quarterly profit attributable to owners of the parent of 1,760 million yen, showing a slight increase from the 1,700 million yen recorded in the first quarter.

The company’s performance remains anchored by its flagship title, Puzzle & Dragons, which continues to generate solid revenue through ongoing brand-strengthening initiatives, including seasonal events and strategic collaborations. Simultaneously, the subsidiary Gravity Co., Ltd. serves as a critical revenue driver. While the second quarter saw a reactionary decline following the strong performance of Ragnarok: The New World in the first quarter, the successful launch of Ragnarok Origin Classic across South Korea, Taiwan, Hong Kong, Macau, and Southeast Asia provided essential support to consolidated results.

Operational efficiency remained a focus throughout the quarter, with the company optimizing advertising expenditures to 1,431 million yen, a reduction of 310 million yen from the previous quarter. Salary and allowance costs remained stable at 1,793 million yen, supported by a consolidated workforce of 1,626 employees. These financial results underscore a strategy of balancing the long-term lifecycle management of established titles with the global expansion of new releases to sustain profitability across diverse international markets.