Krafton grew its revenue in the third quarter of 2026, but its profit shrank sharply as weaker PC sales, higher costs and currency losses weighed on the PUBG publisher. Revenue for July to September rose 11.6% from a year earlier to ₩971.4 billion, according to results published on 10 November. Operating profit, however, fell 35.5% to ₩225.0 billion, and the company swung to a net loss of ₩68.4 billion after foreign exchange losses. Over the first nine months of the year, Krafton still recorded its highest revenue for that period, at ₩3.6 trillion, up 51%.
The quarter was a step down from an enormous first half. Revenue fell 24.7% from the second quarter, which included the early access launch of Subnautica 2 on 14 May, while operating profit dropped 45.2% quarter on quarter. Krafton’s operating margin slipped to 23.2%, down from 40.0% a year earlier. Even so, its nine-month operating profit of ₩1.2 trillion is already 114% of what it earned in the whole of 2025, the year covered in our report on Krafton’s record 2025 results.
Mobile carried Krafton’s third quarter as PC revenue fell
Mobile was the strongest part of the business, bringing in ₩504.3 billion, up 3.2% year on year and 11.8% on the previous quarter. That line combines PUBG Mobile, BGMI and the technology service fee Krafton receives for Peacekeeper Elite in China. Korean media reports credited the summer peak season and global collaborations for the rise, and Krafton’s own earnings presentation highlights “major collaborations and mobile accessibility” as growth drivers. Mobile now accounts for just over half of all revenue.
PC, by contrast, was the weak spot of the quarter. PC revenue fell 32.5% year on year to ₩238.9 billion, and 57.4% against the Subnautica 2 launch quarter, while console revenue slipped 15.9% to ₩8.6 billion. Krafton pointed to lower PC revenue as the main reason operating profit fell. Across the first nine months, however, the PUBG franchise still grew 11%, with mobile up 12% and PC and console up 8%, and the company expects double-digit growth for the full year.
| Platform (KRW billion) | 3Q 2025 | 2Q 2026 | 3Q 2026 | YoY | QoQ |
|---|---|---|---|---|---|
| PC | 353.9 | 560.4 | 238.9 | -32.5% | -57.4% |
| Mobile | 488.5 | 451.0 | 504.3 | +3.2% | +11.8% |
| Console | 10.2 | 23.8 | 8.6 | -15.9% | -64.0% |
| Others | 18.0 | 255.0 | 219.6 | +1,117.8% | -13.9% |
| Total | 870.6 | 1,290.2 | 971.4 | +11.6% | -24.7% |
The “Others” line explains much of the year-on-year growth. It jumped to ₩219.6 billion from just ₩18.0 billion a year ago, because Krafton now consolidates ADK, the Japanese advertising and content group it bought. Korean reports put ADK’s advertising and content revenue at ₩198.4 billion for the quarter. That acquisition also changes Krafton’s cost base, which matters for the profit picture below.
Why Krafton swung to a net loss in the third quarter
Operating expenses rose 43.0% year on year to ₩746.4 billion, which Krafton attributed mainly to the ADK consolidation. Paid commissions more than doubled to ₩284.6 billion, and marketing spend rose 50.2% to ₩65.0 billion, with Korean reports linking the extra spending to Krafton’s presence at Gamescom. Personnel costs also climbed 34.9% to ₩209.7 billion. Platform fees fell, though, which is consistent with lower PC sales through stores such as Steam.
The net loss came from below the operating line. Krafton booked a non-operating loss of ₩305.8 billion, driven by ₩277.8 billion in other expenses, and described the hit as “FX-related non-operating losses”. According to Ajunews, the company said a stronger won had reduced the won value of its dollar assets, calling it an accounting valuation loss that could reverse if the exchange rate moves back. It is Krafton’s second consecutive quarterly net loss, after a ₩29.9 billion loss in the second quarter, compared with a ₩369.4 billion profit a year ago.
Subnautica 2, DED.NET and the rest of Krafton’s pipeline
Subnautica 2 remains the headline new release for Krafton. Korean reports say the early access game has passed 5 million copies, and Krafton’s presentation lists a 91% positive rating on Steam and 4.5 million remaining wishlists. A major “EA 2.0” update is planned before the full launch, while Krafton and developer Unknown Worlds explore expanding the series beyond games. The launch has not been free of drama, as our explainer on Krafton’s Delaware court defeat over the studio’s founders showed.
Krafton is also widening the PUBG brand in several directions. DED.NET, a console-focused PUBG shooter with roguelike elements aimed at Western players, held a closed beta in October and is being prepared for 2027, according to reports. Lighter mobile versions, PUBG Mobile Flash and BGMI Air, are designed for lower-end phones in emerging markets, and a Netflix PUBG series has been confirmed. The company also listed brand tie-ins such as the PUBG x IVE collaboration and its in-house Raon-1 mini language model.
Shareholders, meanwhile, will still see more cash this year. Krafton has returned ₩617.2 billion so far in 2026 and plans a further ₩300 billion share buyback and cancellation in the fourth quarter, taking the year’s total to ₩917.2 billion.
That is its largest annual return since the policy began in 2023, and it comes as the company keeps expanding abroad, including the recently registered KRAFTON BRASIL HOLDINGS. Investors can follow the conference call on Krafton’s earnings call site, and the balance sheet shows ₩2.42 trillion in cash and equivalents at the end of September.
