Netmarble 3Q 2025 Earnings Results

Key insights

7 takeaways

01
Netmarble reported Q3 2025 revenue of KRW 696.0 billion, a 7.5% year-over-year increase driven by new titles like VAMPIR and the expansion of Seven Knights Re:BIRTH.See it on page 3
02
Operating profit margins reached 13.1%, bolstered by a reduced commission-to-revenue ratio resulting from a higher proportion of in-house intellectual property sales.See it on page 4
03
Overseas markets remain the primary revenue driver at 68% of total earnings, with North America contributing 34% and Korea 32%.See it on page 6
04
Marketing expenditures rose 38.9% year-over-year to support new launches, while labor costs were successfully reduced by 4.9%.See it on page 7
05
Quarter-over-quarter performance saw slight declines, with revenue down 3.0% and EBITDA down 6.6% to an EBITDA margin of 17.6%.See it on page 3
06
Net profit fell to KRW 40.6 billion due to fair value adjustments on held assets.See it on page 4
07
The company’s future pipeline includes the late 2025 launch of Solo Leveling:ARISE OVERDRIVE and six additional titles scheduled for the first half of 2026.See it on page 8

Summary

Netmarble’s third-quarter 2025 earnings results demonstrate a period of growth and strategic portfolio management, characterized by a 7.5% year-over-year revenue increase to KRW 696.0 billion. This performance was primarily driven by the successful introduction of new titles, such as VAMPIR, and the regional expansion of established games like Seven Knights Re:BIRTH. While revenue and EBITDA grew compared to the previous year, both metrics experienced a slight quarter-over-quarter decline of 3.0% and 6.6%, respectively. The company maintained an EBITDA margin of 17.6% and an operating profit margin of 13.1%, the latter supported by a reduced commission-to-revenue ratio resulting from a higher proportion of in-house intellectual property sales.

The company’s revenue remains geographically diverse, with 68% of earnings generated from overseas markets, led by North America at 34% and followed by Korea at 32%. The game portfolio is balanced across genres, with casual games and RPGs each accounting for 34% of revenue, while MMORPGs contribute 22%. Operating costs were managed at KRW 605.1 billion, reflecting a 4.0% year-over-year increase. Notably, marketing expenditures rose significantly by 38.9% year-over-year to support new game launches and global releases, while labor costs saw a 4.9% reduction.

Net profit for the quarter reached KRW 40.6 billion, though this figure reflects a decline attributed to fair value adjustments on held assets. Looking ahead, the company is focused on a robust pipeline, including the late 2025 launch of Solo Leveling:ARISE OVERDRIVE and a series of six new titles scheduled for the first half of 2026. These upcoming releases, alongside a planned showcase of five additional titles at G-Star 2025, underscore a continued commitment to expanding its mobile, PC, and console offerings.