1Q26 Pearl Abyss Earnings Letter

Pearl Abyss achieved a record‑breaking first quarter of 2026, driven primarily by the launch of Crimson Desert. Operating revenue surged to KRW 328.5 billion, a 419.8 % year‑over‑year increase and 382.4 % quarter‑on‑quarter rise, while operating profit climbed to KRW 212.1 billion and net profit reached KRW 170.0 billion, supported by favorable foreign‑exchange gains and efficient marketing spend.

Crimson Desert dominated sales, generating KRW 266.5 billion and accounting for 81 % of total revenue, with a balanced split between PC and console. The title achieved rapid early‑stage sales milestones—2 million copies on day one, 5 million within 26 days—and maintained strong momentum through continuous content updates. Black Desert contributed KRW 61.6 billion, maintaining stable quarterly performance through content optimization and seasonal events across PC, console, and mobile platforms.

Operating expenses rose 72.7 % QoQ to KRW 116.4 billion, largely due to increased commissions (193.1 % QoQ) and advertising spend (151.6 % QoQ) linked to Crimson Desert’s launch, while labor costs increased 28.9 % QoQ because of temporary hires for the new IP.

The company projects 2026 operating revenue between KRW 879.0–975.4 billion, with operating profit expected to reach KRW 487.6–572.6 billion and margin improving to 55.5–58.7 %. Planned releases include DokeV (pre‑production) and Plan 8 (conceptualization), aiming to sustain a new title every 2–3 years. A subsidiary sale of Fenris Creations to its management was completed in May 2026, with future collaboration opportunities retained.