1. Krafton Q2 Earnings: The Reality of the Earnings Shock

Krafton’s Q2 2025 revenue reached 662 billion KRW and operating profit was 246 billion KRW, both significantly below market consensus. Net profit plummeted to 15.2 billion KRW, characterizing the results as a true “earnings shock.”

2. Analyzing the Underperformance: The PUBG Shadow

The primary drivers of this underperformance are the slowing growth of PUBG and the disappointing performance of new game releases. Increased competition and a failing franchise expansion strategy have led to a decline in market share. New titles, including , have also underperformed, hindering the company’s search for new growth engines. Macroeconomic uncertainties further contributed to Krafton’s declining profitability.

3. Fundamentals and Stock Outlook: A Glimmer of Hope Amidst Uncertainty

While short-term downward pressure on the stock price is expected, the long-term outlook depends on the success of new IPs, a potential PUBG resurgence, and the commercialization of Krafton’s AI technology.

4. Investor Action Plan: A Cautious Approach is Necessary

Investors should carefully monitor further disclosures and market reactions while formulating their investment strategies. It’s crucial to focus on Krafton’s fundamental improvements rather than being swayed by short-term stock price volatility.