Krafton posts record half-year earnings on Subnautica 2 success

Korean game developer eyes long-term IP expansion with user generated-content initiatives and upcoming new titles

Krafton on Wednesday reported record revenue and operating profit for the first half of this year on the back of continued performances by its megahit PUBG franchise, a battle-royale-style shooter, and the early success of Subnautica 2, an underwater survival adventure.

According to the company’s preliminary earnings, Krafton logged 2.66 trillion won ($1.84 billion) in sales and 972.5 billion won in operating profit in the first six months of 2026, up 73.3 percent and 38.3 percent, respectively, from the same period last year. The first-half operating profit already accounted for approximately 92 percent of the firm’s full-year operating profit last year.

For the second quarter alone, the Korean game firm recorded revenue of 1.29 trillion won and operating profit of 410.9 billion won, up 94.9 percent and 67 percent, respectively, from the same period last year. Both figures marked the company’s highest-ever second-quarter earnings.

Krafton’s flagship PUBG intellectual property franchise generated 25 percent higher revenue in the first half than a year earlier, led by solid user engagement and growth in paying users across PC and mobile platforms, according to the company.

Krafton said it will continue transforming the PUBG franchise into a broader content platform by expanding user-generated content, or UGC, and global IP collaborations beyond automotive brands and K-pop celebrities. Since 2023, the popularity of UGC has risen steadily with more players participating in other players’ content, generating more monetization opportunities.

Subnautica 2, which began early access in May, sold 5 million copies within 22 days of its launch, indicating the new title’s potential to be Kraton’s next major franchise. The launch of the new game pushed Krafton’s quarterly PC revenue over 500 billion won for the first time.

“Krafton has proved the potential of our core IP in the second quarter, setting up the growing structure of our franchise IP,” said Kim Chang-han, CEO of Krafton, during an earnings call Wednesday. “We will strengthen the system to continue developing IP with a competitive edge.”

Krafton plans to unveil five new titles at Gamescom 2026 in Cologne, Germany, in August, including an unannounced project based on the PUBG intellectual property, alongside No Law, Project Zeta, Age Twisters and Tarae: The Unbound. The company aims to launch the new titles by 2027 as part of its strategy to cultivate more franchise IP.

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