Kakao Games (293490) Q1 2026 earnings summary

Executive summary

• 1Q26 revenue was KRW 82.9 billion, down 33% YoY and 16% QoQ, reflecting stabilization of existing titles and limited impact from new releases.

• Operating loss widened to KRW 25.5 billion in 1Q26 due to continued investment in new game development.

• Net loss for 1Q26 was KRW 39.5 billion, with non-operating losses decreasing compared to the previous quarter.

• The company completed the sale of its golf business and Neptune stake in 2025, impacting discontinued operations.

Financial highlights

• 1Q26 revenue: KRW 82.9 billion; operating loss: KRW 25.5 billion; net loss: KRW 39.5 billion.

• Mobile game revenue: KRW 55.0 billion, down 42.7% YoY and 20.2% QoQ; PC game revenue: KRW 27.9 billion, up 4.1% YoY but down 6.8% QoQ.

• Cash and cash equivalents at 1Q26: KRW 530.4 billion.

• R&D expenses for 1Q26: KRW 40.8 billion, representing 49.2% of sales.

• Basic and diluted EPS for 1Q26: -KRW 337.

Outlook and guidance

• Pipeline includes several new titles scheduled for release in 2Q26 and beyond, such as Dungeon Arise, Project OQ, Odin Q, and ArcheAge Chronicle.

• The company is preparing multiple new global game launches in 2026, including AAA titles and expanding its global publishing portfolio.

• Focus remains on leveraging multi-platform and cross-play capabilities, with continued investment in AI and blockchain technologies.