November 7, 2025
GungHo Online Entertainment, Inc.
FY 2025 Supplementary Material
Net sales increases YoY, but non-consolidated sales slowdown Decrease in profit due to increase in outsourcing expenses for development
of new titles and advertising expenses, etc.
Summary of quarter consolidated result
【Net Sales】
In the 3rd quarter of the fiscal year ending December 31, 2025, we continued the roll-out of various events, including original events for each season and collaborations with famous characters of other companies to have more users enjoy "Puzzle & Dragons" over the long-term, but sales slowed down in July when there were no collaborative events.
Furthermore, subsidiary Gravity Co., Ltd. and its consolidated subsidiaries worked to continuous release new titles with the launch of "Ragnarok: Twilight" and "Ragnarok Zero" in Taiwan, Hong Kong, and Macau on July 3, 2025 and "Ragnarok Idle Adventure Plus" in Korea on August 28, 2025.
As a result, net sales for the 3rd quarter of the year was 23,007 million yen (a decrease of 3,805 million yen quarter on quarter).
【Gross profit】
Consolidated gross profit for the 3rd quarter was JPY 10,413 million (a decrease of JPY1,590 million quarter on quarter) due to the lower net sales. The gross profit margin was 45.3% (increased by 0.5% quarter on quarter).
【Operating profit】
[Salary and allowances]
As of the end of the 3rd quarter of the year, the number of GungHo non-consolidated employees was 462 (an increase of 13 year on year and flat quarter on quarter), and the number of consolidated employees was 1,637 (an increase of 162 year on year and an increase of 3 quarter on quarter). For the 3rd quarter, the salary and allowances were JPY 1,741 million (an increase of JPY 105 million quarter on quarter).
[Advertising expenses]
In the 3rd quarter of the fiscal year ending December 31, 2025, in addition to the promotion of existing titles such
as "Puzzle & Dragons," GungHo (non-consolidated) held the offline event "GungHo Tour 2025" in six cities nationwide from August 2025, and also exhibited at the "TOKYO GAME SHOW 2025" held from September 25, 2025. Gravity implemented promotions related to its new Ragnarok-related titles. As a result, advertising expenses in the 3rd quarter were JPY 2,671 million (a decrease of JPY 595 million quarter on quarter).
As a result, the operating profit for the 3rd quarter of this year was JPY848 million (a decrease of JPY 1,341 million quarter on quarter). The operating profit margin was 3.7% (decreased by 4.5% quarter on quarter)
GungHo Online Entertainment Transition of non-consolidated monthly sales
Non-consolidated monthly sales2017.1
3
5
7
9
11
2018.1
3
5
7
9
11
2019.1
3
5
7
9
11
2020.1
3
5
7
9
11
2021.1
3
5
7
9
11
2022.1
3
5
7
9
11
2023.1
3
5
7
9
11
2024.1
3
5
7
9
11
2025.1
3
5
7
9
In the 3rd quarter, we have been making comprehensive efforts with the aim of having a greater number of users enjoy our games, such as adding new content, collaboration with famous characters from other companies and TV anime broadcasts. Moreover, we announced "LET IT DIE: INFERNO," a new title in the "LET IT DIE" series, at the "TOKYO GAME SHOW 2025," held from September 25, 2025, and also set up a test booth ahead of the global release scheduled for December 4.
GungHo Online Entertainment Main titles currently distributed
Original Titles
Platform
Release Date
Distribution Area
Downloads
Reached Date
Puzzle & Dragons
（Japan）
Smart Phone
2/20/2012
Japan
63million
4/30/2025
Puzzle & Dragons
（North America）
Smart Phone
11/8/2012
North America
15million
9/10/2023
Puzzle & Dragons
（Korea）
Smart Phone
12/10/2012
Korea
3million
2/22/2020
Puzzle & Dragons
（Hong Kong / Taiwan）
Smart Phone
1/23/2014
Hong Kong Taiwan
3million
1/9/2020
Puzzle & Dragons Battle
Smart Phone
3/17/2016
Japan
6million
9/29/2018
Princess Punt Sweets
Smart Phone
11/19/2012
Japan
12million
10/4/2017
SUMMONS BOARD
Smart Phone
2/10/2014
Japan Hong Kong
Taiwan
6million
4/9/2024
TEPPEN
Smart Phone
7/4/2019
Japan / North America /
Europe / Asia / Latin America
5million
8/7/2022
LET IT DIE
Playstation4・5 Steam（PC）
12/3/2016
Japan / North America / Europe / Asia / Latin America
9million
6/7/2025
Ninjala
Nintendo Switch™
6/25/2020
Japan / North America / Europe / Asia /
Australia
11milliion
5/14/2024
Partner Publishing Titles
Platform
Release Date in Japan
Ragnarok Online
PC
12/1/2002
Ragnarok Masters
Smart Phone
6/5/2019
Ragnarok Origin
Smart Phone
6/28/2021
Rangarok X
Smart Phone, PC
11/20/2024
Consolidated Balance Sheets （Unit: Millions of Yen）
2023
2024
2025
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
Current assets
139,487
154,697
154,280
155,967
155,592
118,559
113,889
120,875
111,729
153,074
152,411
Cash and deposits
122,633
134,173
133,753
136,198
135,724
97,371
95,574
99,598
91,851
131,804
130,192
Accounts receivable-trade and contract
12,410
16,827
13,807
13,379
11,986
13,713
10,764
13,515
11,398
11,891
10,263
Short-term investment securities
2,234
1,941
3,880
3,835
4,384
4,743
4,542
5,018
4,787
5,028
5,778
Others
2,208
1,755
2,839
2,553
3,497
2,731
3,007
2,742
3,692
4,350
6,176
Non-current assets
10,456
11,635
11,985
12,077
11,989
52,176
52,434
54,588
54,573
15,506
15,498
Property, plant and equipment
890
1,131
1,347
1,240
1,114
1,026
901
1,326
1,347
1,396
1,401
Intangible assets
379
356
341
502
483
458
436
748
618
832
692
Investments and other assets
9,187
10,147
10,296
10,334
10,390
50,690
51,096
52,513
52,608
13,277
13,405
Long-term deposit
-
-
-
-
-
40,000
40,000
40,000
40,000
-
-
Others
Total assets
Current liabilities
Notes and accounts payable-trade
9,187
149,944
16,486
6,001
10,147
166,332
23,002
10,626
10,296
166,265
17,767
7,740
10,334
168,045
17,493
5,616
10,390
167,582
16,820
5,931
10,690 11,096 12,513 12,608
13,277
168,581
17,678
7,644
13,405
167,909
15,457
6,463
170,735
18,438
5,331
166,323
14,848
4,980
175,464
19,453
5,861
166,303
18,804
5,797
Income taxes payable 2,414 4,036 1,905 2,913 2,963 4,110 1,699 2,989 1,298 1,802 697
Others
8,070
8,339
8,121
8,963
7,925
8,996
8,168
10,602
11,708
8,231
8,296
Non-current liabilities
1,453
1,687
1,665
1,056
1,035
1,020
1,037
2,475
2,533
2,538
2,581
Total liabilities
17,940
24,690
19,433
18,550
17,856
19,458
15,885
21,929
21,337
20,217
18,039
Shareholder's equity
114,784
119,803
123,286
126,073
123,416
122,247
124,115
125,624
118,884
120,212
120,652
Capital stock
5,338
5,338
5,338
5,338
5,338
5,338
5,338
5,338
5,338
5,338
5,338
Capital surplus
5,487
5,487
5,487
5,487
5,487
5,487
5,487
5,487
5,487
5,498
5,492
Retained earnings
187,135
192,160
195,644
198,415
200,621
192,324
194,193
195,670
152,447
153,301
153,729
Treasury shares
-83,177
-83,183
-83,184
-83,168
-88,031
-80,903
-80,904
-80,872
-44,389
-43,926
-43,908
Total Accumulated other comprehensive income
608
1,660
1,882
1,390
2,352
3,592
1,356
1,687
15
1,157
1,268
Foreign currency translation adjustment
608
1,660
1,881
1,390
2,352
3,592
1,356
1,687
15
1,157
1,268
Others
-
-
-
-
-
-
-
-
-
-
-
Stock Option
1,163
1,213
1,264
1,300
1,350
1,394
1,444
1,464
1,514
1,088
1,117
Non Controlling Interests
15,447
18,964
20,399
20,731
22,606
24,043
23,521
24,759
24,552
25,905
26,831
Total net assets
132,004
141,642
146,832
149,495
149,725
151,277
150,437
153,535
144,966
148,364
149,870
Total liabilities and net assets
149,944
166,332
166,265
168,045
167,582
170,735
166,323
175,464
166,303
168,581
167,909
Consolidated Statements of Income （Unit: Millions of Yen）
2023 | 2024 | 2025 | |||||||||||
1Q | 2Q | 3Q | 4Q | Total | 1Q | 2Q | 3Q | 4Q | Total | 1Q | 2Q | 3Q | |
Net sales | 30,722 | 36,948 | 30,177 | 27,466 | 125,315 | 25,736 | 27,918 | 22,828 | 27,116 | 103,600 | 23,775 | 26,812 | 23,007 |
Cost of sales Cost of sales ratio Gross profit Total selling, general and administrative expenses Salaries, wages and bonuses etc. | 15,602 50.7% 15,120 6,637 1,240 | 21,513 58.2% 15,435 6,855 1,390 | 16,443 54.4% 13,734 7,236 1,391 | 14,785 53.8% 12,680 8,360 1,767 | 68,344 54.5% | 12,435 48.3% 13,301 7,035 1,376 | 13,190 47.2% 14,728 8,786 1,461 | 11,321 49.5% 11,507 7,893 1,522 | 13,238 48.8% 13,877 12,208 2,104 | 50,185 48.4% | 12,319 51.8% 11,456 8,624 1,566 | 14,808 55.2% 12,004 9,815 1,636 | 12,593 54.7% 10,413 9,565 1,741 |
56,971 29,090 | 53,415 35,923 | ||||||||||||
5,790 | 6,466 | ||||||||||||
Advertising & marketing | 1,872 | 1,834 | 1,992 | 2,482 | 8,181 | 1,886 | 3,130 | 2,424 | 3,756 | 11,198 | 2,489 | 3,267 | 2,671 |
Others Operating profit Operating profit ratio Non-operating profit Interest income | 3,524 8,483 27.6% 351 221 | 3,630 8,580 23.2% 732 272 | 3,852 6,497 21.5% 381 309 | 4,110 4,320 15.7% -10 437 | 15,118 | 3,771 6,266 24.3% 676 432 | 4,194 | 3,945 | 6,346 | 18,258 | 4,569 2,831 11.9% 429 416 | 4,911 2,189 8.2% 450 445 | 5,152 848 3.7% 547 469 |
27,880 | 5,941 21.2% 643 485 | 3,614 15.8% 215 471 | 1,669 6.1% 1,017 566 | 17,491 | |||||||||
22.2% | 16.9% | ||||||||||||
1,454 | 2,552 | ||||||||||||
1,241 | 1,955 | ||||||||||||
Foreign exchange gains | 123 | 453 | 55 | -455 | 177 | 183 | 97 | -281 | 428 | 428 | - | - | - |
Others Non-operating expenses Interest expenses | 7 6 3 | 5 7 5 | 15 7 6 | 6 5 4 | 35 | 59 7 4 | 61 | 25 | 22 | 168 | 13 36 7 | 4 512 7 | 78 -221 7 |
27 | 15 4 | 87 3 | -79 3 | 30 | |||||||||
21 | 15 | ||||||||||||
Foreign exchange losses | - | - | - | - | - | - | - | 83 | -83 | - | 26 | 503 | -229 |
Others | 2 | 2 | 1 | - | 5 | 2 | 11 | 1 | - | 15 | 2 | 2 | - |
Ordinary profit | 8,828 | 9,304 | 6,871 | 4,304 | 29,308 | 6,935 | 6,569 | 3,741 | 2,766 | 20,013 | 3,224 | 2,127 | 1,617 |
Extraordinary profit | - | - | - | 682 | 682 | - | - | - | - | - | - | - | - |
Gain on sale of shares of subsidiaries and affiliates | - | - | - | 682 | 682 | - | - | - | - | - | - | - | - |
Gain on liquidation of investment securities | - | - | - | - | - | - | - | - | - | - | - | - | - |
Extraordinary loss | - | 76 | 1 | 183 | 261 | - | - | 65 | 109 | 174 | - | 28 | 32 |
Impariment loss | - | 3 | - | 182 | 186 | - | - | 65 | 109 | 174 | - | 28 | 32 |
Loss on valuation of investment securities Profit before income taxes and Non Controlling Interests Profit Attributable To Owners Of Parent | - 8,828 5,150 | 72 9,228 5,025 | 1 6,869 3,483 | - 4,803 2,774 | 75 | - 6,935 4,002 | - 6,569 3,820 | - 3,675 1,868 | - 2,657 1,479 | - | - 3,224 1,609 | - 2,098 854 | - 1,584 428 |
29,729 16,433 | 19,838 11,171 | ||||||||||||