KRAFTON FY2025 3Q Earnings Results

Key insights

6 takeaways

01
KRAFTON reported Q3 2025 revenue of KRW 870.6 billion, a 21.0% year-over-year increase, with operating profit rising 7.5% to KRW 348.6 billion.See it on page 16
02
The company is transitioning to an 'AI First' organizational structure, supported by a KRW 100 billion investment in NVIDIA GPU infrastructure and the development of a 500-billion parameter foundation model.See it on page 14
03
PUBG remains the primary revenue driver, achieving four consecutive years of growth across PC and mobile platforms while the company simultaneously develops 'PUBG ALLY' agentic AI for cooperative gameplay.See it on page 9
04
Development projects have more than doubled from five in 2024 to eleven in 2025, with a notable project being the mobile adaptation of Palworld.See it on page 13
05
KRAFTON is aggressively expanding in India by leveraging BGMI for esports and diversifying into the cricket game market through local partnerships.See it on page 4
06
Net profit reached KRW 369.4 billion in Q3 2025, bolstered significantly by favorable foreign exchange effects.See it on page 16

Summary

KRAFTON’s third-quarter 2025 earnings results demonstrate robust financial growth and a strategic pivot toward AI integration and regional market expansion. The company reported quarterly revenue of KRW 870.6 billion, representing a 21.0% increase year-over-year and a 31.5% increase quarter-over-quarter. Operating profit reached KRW 348.6 billion, a 7.5% year-over-year rise, while net profit surged to KRW 369.4 billion, driven largely by favorable foreign exchange effects. These results underscore the sustained performance of the PUBG intellectual property, which has now achieved four consecutive years of growth across PC and mobile platforms.

The company’s strategic focus remains heavily centered on the Indian market, where it continues to leverage the Battlegrounds Mobile India (BGMI) title to drive user engagement and esports participation. Efforts in this region include localized content, infrastructure investments, and a diversification strategy that involves entering the cricket game market. By partnering with local developers and securing familiar intellectual properties, the company aims to increase its hit ratio for new titles scheduled for launch through fiscal year 2026.

Technological innovation serves as a primary pillar for future operations, with a formal transition toward an "AI First" organizational structure. This initiative includes the development of a 500-billion parameter foundation model and the deployment of "PUBG ALLY," an agentic AI designed to enhance cooperative gameplay. Supported by a KRW 100 billion investment in NVIDIA GPU infrastructure, these AI capabilities are intended to automate complex tasks and improve in-game situational awareness.

The company’s portfolio expansion is further evidenced by an increase in secured development projects, which grew from five in 2024 to eleven in 2025. Notable among these is the development of Palworld Mobile, which aims to translate the original survival-crafting gameplay to mobile devices. These efforts, combined with ongoing R&D for the PUBG 2.0 transition, reflect a broader strategy to diversify revenue streams while maintaining the core strength of existing franchises.