FY2026 2Q & 1H Earnings Results: KRAFTON

Krafton’s financial performance for the first half of 2026 demonstrates significant growth, driven by the continued expansion of the PUBG franchise and the successful early access launch of new intellectual property. The company reported record-high half-year revenue of KRW 2.7 trillion, representing a 73.3% increase year-over-year. Operating profit for the same period reached KRW 972.5 billion, a 38.3% increase compared to the previous year, effectively achieving 92% of the total operating profit recorded for the full 2025 fiscal year.

The core PUBG franchise remains the primary engine for this growth, bolstered by content platformization and the integration of user-generated content (UGC) through the World of Wonder creation tools. This strategy has successfully reactivated core fandom engagement and expanded traffic. Simultaneously, the company is executing a repeatable franchise growth model, evidenced by the performance of Subnautica 2, which surpassed 5 million units sold within 22 days of its early access release. This success validates the company’s systematic approach to discovering and scaling genre-defining titles, with five additional projects currently in development or validation stages.

Despite strong revenue, the second quarter of 2026 saw a 5.9% quarter-over-quarter revenue decline and a 26.8% decrease in operating profit, alongside a net loss of KRW 29.9 billion for the quarter. These results were influenced by increased operating expenses, which rose 111.4% year-over-year due to higher platform fees, commissions, and the inclusion of new subsidiaries. Nevertheless, the company maintains a robust financial position and remains committed to shareholder returns, announcing an additional KRW 100 billion share buyback and cancellation plan for the third quarter of 2026, following the completion of significant capital reduction and share cancellation programs earlier in the year.