Kakao Games reported ₩75.0 billion in revenue and a ₩23.0 billion operating loss for Q2 2026, its most recent filed quarter. This guide to Kakao Games financials tracks six quarters of results, the mobile and PC revenue split, 2025 cost cuts, the LY Corporation ownership deal, and Q3 2026 forecasts published as of October 26, 2026.
Kakao Games Financials
How Much Did Kakao Games Lose in Q2 2026?
Kakao Games lost ₩23.0 billion at the operating level in Q2 2026 on ₩75.0 billion of consolidated revenue. Sales fell 35.2% year over year and 9.5% from Q1.
The operating loss narrowed from ₩25.5 billion in Q1 2026. Net loss widened to ₩57.0 billion from ₩39.5 billion, and pretax loss grew to ₩64.5 billion, Aju Press reported from the regulatory filing.
Rising financing costs added to the operating deficit, the earnings release said. The Elec counted Q2 as the company’s seventh straight quarterly operating loss.
| Quarter | Revenue | Revenue YoY | Operating profit (loss) | Net profit (loss) |
|---|---|---|---|---|
| Q1 2025 | ₩122.9B | -31.1% | -₩12.4B | -₩33.4B |
| Q2 2025 | ₩115.8B | -24.2% | -₩8.6B | -₩33.6B |
| Q3 2025 | ₩127.5B | -21.7% | -₩5.4B | +₩34.6B |
| Q4 2025 | ₩98.9B | -25.8% | -₩13.1B | -₩110.6B |
| Q1 2026 | ₩82.9B | -33% | -₩25.5B | -₩39.5B |
| Q2 2026 | ₩75.0B | -35.2% | -₩23.0B | -₩57.0B |
Source: Kakao Games quarterly earnings releases (K-IFRS, consolidated), Q1 2025 to Q2 2026
Over a similar span, NC’s quarterly earnings offer a Korean peer comparison.
First-half 2026 revenue reached ₩157.9 billion, down 33% year over year, with a ₩48.5 billion operating loss, per The Elec.
Source: The Elec, H1 2026 (January to June)
Full-Year 2025: ₩465 Billion in Revenue
Annual revenue fell 25.9% to ₩465 billion in 2025, the same year covered in our breakdown of how Korea’s largest publishers fared.
The operating line swung to a ₩39.6 billion loss, and net loss reached ₩143 billion. Quartr’s summary of the Q4 call put the 2025 operating margin at -8.5%.
Q3 2025’s ₩34.6 billion net profit came from non-operating gains on derivatives and financial income. Intangible asset impairments drove most of Q4 2025’s ₩110.6 billion net loss.
Source: Kakao Games FY2025 earnings release, January to December 2025; Quartr Q4 2025 earnings summary
Mobile vs PC: Kakao Games Financials by Platform
Mobile games brought in ₩52.7 billion in Q2 2026, down 48% year over year and 4% from Q1. Gamemeca noted the segment has shrunk for four straight quarters since Q2 2025, to about half its ₩101 billion level a year earlier.
Management cited fading legacy titles and the transfer of servicing rights for R.O.M on the Q2 call. Mobile also leads worldwide, as our data on mobile’s share of global game revenue shows.
PC online revenue rose 51% to ₩22.3 billion. The line moves with Battlegrounds collaboration updates and jumped 187.8% quarter over quarter to ₩42.7 billion in Q3 2025.
Kakao Games services Battlegrounds and Path of Exile 2 on PC in Korea. Both are also available on Steam; see Steam’s player base for platform-wide figures.
| Quarter | Mobile games | PC online games | Total revenue |
|---|---|---|---|
| Q1 2025 | ₩96.1B | ₩26.8B | ₩122.9B |
| Q2 2025 | ₩101.0B | ₩14.8B | ₩115.8B |
| Q3 2025 | ₩84.8B | ₩42.7B | ₩127.5B |
| Q4 2025 | ₩69.0B | ₩29.9B | ₩98.9B |
| Q1 2026 | ₩55.0B | ₩27.9B | ₩82.9B |
| Q2 2026 | ₩52.7B | ₩22.3B | ₩75.0B |
Source: Kakao Games quarterly earnings releases, Q1 2025 to Q2 2026; Q4 2025 split via Eugene Investment & Securities results review, February 12, 2026
For full-year 2025, mobile revenue fell 35.1% to ₩350.8 billion and PC revenue rose 31.6% to ₩114.2 billion, Dealsite reported.
Source: Dealsite, FY2025 vs FY2024
₩504.6 Billion in 2025 Operating Costs, Down 17%
Kakao Games cut operating expenses to ₩504.6 billion in 2025 from ₩732.3 billion in 2024, Dealsite reported from company filings.
Commissions paid fell 28.9% to ₩234.2 billion, which Dealsite tied to mobile’s shrinking share of revenue. Labor costs dropped to ₩150.1 billion and marketing to ₩37.4 billion.
Source: Dealsite, FY2024 and FY2025 operating expenses
Cuts carried into 2026. Q2 2026 operating expenses came to ₩98.0 billion, down 21.2% year over year, on lower commissions and marketing spend.
Revenue fell faster, down 35.2% over the same period.
Source: Kakao Games Q2 2026 earnings release, April to June 2026
Kakao Games Financials After LY Corporation’s ₩300 Billion Investment
LAAA Investment, a vehicle funded by LY Corporation, became Kakao Games’ largest shareholder on June 19, 2026.
The stake equals 35,566,086 shares. Kakao Corp. fell to 14.68%, or 15,622,268 shares, and became the second-largest holder, per the filing as reported by Edaily and fnnews.
The deal raised ₩300 billion: ₩240 billion from a third-party share allotment and ₩60 billion from convertible bonds. Shares issued rose from 88,932,902 to 106,391,256.
| Shareholder | Before June 19, 2026 | After June 19, 2026 |
|---|---|---|
| LAAA Investment LLC | — | 33.43% |
| Kakao Corp. | 37.93% | 14.68% |
| Largest-shareholder group, incl. related parties | 45.38% (Kakao and 13 others) | 38.95% (LAAA and 10 others) |
Source: Kakao Games regulatory filing, June 19, 2026, via Edaily and fnnews
Co-CEOs Lee Si-woo and Kim Tae-hwan now lead the company; Kim previously worked at Nexon and Line Games. On the Q2 call, management said it has no plans to merge with LINE Games.
Cash vs Current Liabilities at June 30, 2026
Consolidated cash and cash equivalents stood at ₩720.1 billion at end-June 2026. Current liabilities totaled ₩947.2 billion, ₩227.1 billion more, according to The Elec.
Total assets fell from ₩3.17 trillion at end-2024 to ₩2.68 trillion at end-2025, before the LY deal closed.
Source: The Elec, balance sheet as of June 30, 2026; Kakao Games FY2025 earnings release, as of December 31, 2025
What Do Analysts Expect From Kakao Games Financials in Q3 2026?
| Forecaster | Q3 2026 revenue | Q3 2026 operating loss |
|---|---|---|
| Market consensus | ₩79.1B | ₩24.5B |
| Eugene Investment & Securities | ₩69.7B | ₩31.8B |
Source: The Elec, Q3 2026 (July to September) forecasts published October 12, 2026
The consensus revenue figure would be 38% below Q3 2025’s ₩127.5 billion, The Elec noted. Kakao Games had not published Q3 2026 results as of October 26, 2026.
On its August 5 call, management called Q2 and Q3 2026 the revenue bottom. It targets at least five new titles from Q4 2026 through Q1 2027 and a return to profit in Q1 2027.
Odin Q, developed with Lionheart Studio, is scheduled for January 2027.
Source: Kakao Games Q2 2026 earnings call, August 5, 2026
How Is World of Dokkaebi Performing?
Supercat’s World of Dokkaebi launched on PC and mobile in Korea on October 8, 2026. It reached No. 1 on Google Play’s top-grossing chart on October 13, Kakao Games said.
These are store grossing ranks, not revenue. Q3 2026 closed on September 30, before the launch.
Source: Kakao Games announcement, October 13, 2026
Shares traded at ₩11,730 at 10:13 a.m. on October 23, 2026, up 7.81% on the day and 29.01% over one month, Hankyung reported. Hyundai Motor Securities raised its target price to ₩13,000 from ₩11,000.
Source: Hankyung, intraday price on October 23, 2026
Kakao Games also agreed in September 2026 to buy 39.56% of social casino company Me2On for about ₩98.0 billion, with closing set for November. Me2On reported ₩120.9 billion in 2025 revenue and ₩12.6 billion in operating profit.
Source: The Elec, October 12, 2026
FAQs
Is Kakao Games profitable?
No. Kakao Games posted a ₩23.0 billion operating loss and a ₩57.0 billion net loss in Q2 2026, its seventh straight quarterly operating loss. Management is targeting a return to profit in Q1 2027.
How much revenue does Kakao Games make?
Annual revenue was ₩465 billion in 2025, down 25.9% from 2024. First-half 2026 revenue totaled ₩157.9 billion, 33% below the same period of 2025.
Who owns Kakao Games now?
LAAA Investment, a vehicle funded by LY Corporation, has held 33.43% since June 19, 2026. Kakao Corp. fell to 14.68% and is now the second-largest shareholder.
What do analysts expect for Kakao Games’ Q3 2026 results?
Market consensus cited by The Elec on October 12, 2026 put Q3 revenue at ₩79.1 billion with a ₩24.5 billion operating loss. Eugene Investment & Securities forecast ₩69.7 billion and a ₩31.8 billion loss.
Do Kakao Games’ filings back the turnaround talk on Reddit?
Not yet. Filed results through Q2 2026 show seven straight operating losses. World of Dokkaebi hit No. 1 on Google Play’s grossing chart on October 13, 2026, after Q3 closed on September 30.
