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Krafton Q2 2026 Earnings Hit Record High as Subnautica 2 and PUBG Drive Growth

Subnautica 2 and PUBG.
Image: Subnautica 2 and PUBG (Credit: Krafton)

Krafton posted record second-quarter earnings for 2026, driven largely by the explosive launch of Subnautica 2 and steady growth across the PUBG franchise.


The Korean gaming giant reported revenue of 1.29 trillion KRW ($889.1 million), marking a massive 94.9% year-over-year jump.


Operating profit wasn't far behind either, climbing 67% to reach 410.9 billion KRW ($283.1 million), a new company record.


Subnautica 2 hit 5 million

Unknown Worlds' Subnautica 2 hit Early Access in May, and it didn't waste time making an impact. The underwater survival sequel crossed 5 million units sold in just 22 days, a pace that clearly caught even Krafton off guard.


Combined with its predecessors, Subnautica and Subnautica: Below Zero, the franchise pulled in 232.5 billion KRW ($160 million) in first-half revenue alone. That's a serious number for a series that spent most of last year tangled up in legal drama rather than headlines.


Krafton has now confirmed plans to develop Subnautica into a full-blown "franchise IP," promising stable service through to the game's eventual full launch.


Unknown Worlds lawsuit finally wrapped up

Krafton settled its long-running dispute with Unknown Worlds' former leadership team near the end of the quarter. The company agreed to pay out the disputed $250 million bonus that had been at the center of the fight since last year.


Speaking to Bloomberg after the deal closed, former CEO Ted Gill said Unknown Worlds staff would be "compensated significantly more" than what the original acquisition agreement called for, adding they'd also receive "further incentives" as Subnautica development continues.


PUBG keeps quietly printing money

While Subnautica grabbed the spotlight, PUBG kept doing what it does best in the background. The franchise, covering PUBG: Battlegrounds on PC, PUBG Mobile, and Battlegrounds Mobile India (BGMI), saw revenue rise 25% year over year across the first half of 2026.


Krafton credited new content drops for the growth, including:

  • The co-op PvE mode Xeno Point on PC

  • A crossover event with the Payday series

  • Continued expansion of the World of Wonder UGC platform on mobile


On the UGC side, Krafton confirmed plans to keep building out creation tools tied to global IPs like Naruto and Spider-Man, alongside a new in-game currency meant to boost creator rewards.


A quick breakdown of the revenue split

Here's how the different platforms performed during the quarter:

  • PC revenue crossed 500 billion KRW ($344.4 million) for the first time, up 155.1% year over year

  • Console revenue jumped 143.3% to 23.8 billion KRW ($16.3 million)

  • Mobile revenue grew a more modest 5.5% to 451 billion KRW ($310.7 million)


What's next for Krafton?

Looking ahead, Krafton plans to unveil 5 new titles at Gamescom next month, all targeting release by 2027. That lineup includes a new PUBG-based project, along with No Law, Project Zeta, Age Twisters, and Tarae: The Unbound.


According to earlier statements from the company, Krafton currently has 26 games in active development, with 12 expected to launch within the next two years.


"We will remain focused on Krafton's core gaming business as we begin to move into the execution phase of producing new titles," said Krafton CEO CH Kim. "While expanding the PUBG IP franchise as a content platform, we will begin to create franchise IPs via our new title pipeline and creative leadership."

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