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GungHo Profit Slumps as Puzzle & Dragons Sales Weaken Despite Solid Ragnarok Performance

Story Highlights
  • GungHo reported lower 2025 sales and a steep profit plunge, as reduced collaboration events for Puzzle & Dragons weighed on revenue and sharply cut earnings.
  • Ragnarok titles and Gravity’s overseas launches held up well, but higher personnel and SG&A costs after the Alim acquisition further compressed GungHo’s profitability.
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GungHo Profit Slumps as Puzzle & Dragons Sales Weaken Despite Solid Ragnarok Performance

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Gungho Online Entertainment ( (JP:3765) ) has shared an announcement.

GungHo Online Entertainment reported a sharp year-on-year decline in earnings for the fiscal year ended December 31, 2025, as net sales fell 10.0% to ¥93.2 billion and profit attributable to owners of parent plunged 87.4% to ¥1.4 billion. The drop was driven by weaker sales from flagship title Puzzle & Dragons, which held fewer collaboration events with popular external characters than in the previous year.

Ragnarok-related titles showed more resilience, with strong anniversary-driven engagement in Japan and a year-on-year net sales increase at subsidiary Gravity Co., Ltd., supported by launches such as Ragnarok M: Classic and Ragnarok: Twilight. However, higher selling, general and administrative expenses, particularly personnel costs after the full acquisition of Alim Co., Ltd., further pressured margins and significantly reduced operating and ordinary profits compared with the prior year.

The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2881.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.

More about Gungho Online Entertainment

GungHo Online Entertainment, Inc. is a Japanese online and mobile game developer and publisher best known for hit titles such as Puzzle & Dragons and the Ragnarok series. The company focuses on global distribution, user-base expansion, and brand strengthening across multiple regions, including Japan, Southeast Asia, Taiwan, Hong Kong, and Macau.

Average Trading Volume: 191,647

Technical Sentiment Signal: Buy

Current Market Cap: Yen142.9B

For an in-depth examination of 3765 stock, go to TipRanks’ Overview page.

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