Pearl Abyss Q2 2026 Earnings Letter

 

Pearl Abyss has continued the practice of issuing earnings letters instead of holding quarterly calls with investors and investment analysts. The latest earnings letter for the second quarter of 2026 came out yesterday. With the sell-off of CCP Games (now Fenris Creations) on 6 May 2026 revenue from the studios was removed from these documents. When news of the divestment of the company leaked Pearl Abyss share price dropped down to ₩36,400 on 24 June. But as usually happens the price slowly increased as the quarterly information release approached. The stock price closed the trading day on 11 August at ₩37,050.

From the Q2 2026 earnings letter

As expected, the quarter over quarter numbers dropped significantly after the launch of Crimson Desert. Operating revenue dropped 41.4% down to ₩192.6 billion ($128.3 million), which is still a 247.7% increase compared to the second quarter of 2025.

But the big item is profits. At least for this year Pearl Abyss has returned to profitability. QoQ profits declined 58.3% down to ₩70.9 billion ($47.2 million) but were a lot better than the ₩15.5 billion ($11.1 million) loss recorded in the Q2 2025.

From the Q2 2026 earnings letter

Since Pearl Abyss has switched to a written format I don't need to try to summarize from a call like I had the previous six years. First, the Black Desert IP. Year-over-year revenue was flat although when currency effects are taken into account, revenue was slightly down when looked at in U.S. dollars.

Black Desert revenue softened slightly QoQ, as its operations focused on content optimization rather than major expansions. On PC, updates centered on revamping the 'Red Battlefield’ matching system and ‘Node/Conquest Wars’, while mobile held celebratory events for its 3,000th day of service, showing positive user engagement trends.

Slightly softening was a 10.7% revenue decline down to ₩55 billion ($36.6 million). To put the amount into perspective, the Cloud Imperium Games/Star Citizen brought in $67.7 million during the second quarter.

Crimson Desert, as expected, experienced a large revenue decline after its March launch. Still ₩136.1 billion ($90.6 million) is nothing to sneeze at.

Crimson Desert sold approximately 2.11 million copies during 2Q26, with digital sales accounting for 1.72 million copies (82%) and physical sales accounting for 0.39 million copies (18%). In 2Q26, average selling price (ASP) decreased QoQ due to a higher proportion of sales from channels, where revenue is recognized as a percentage of gross payment. Furthermore, for physical packages, there was a time lag between sell-through and revenue recognition based on distributor settlement terms, and revenue came in below guidance as 20% of the settlement amount was deferred for refund guarantee purposes. The ASP in 2Q26 stood at approximately KRW 63 thousand (compared to KRW 74 thousand in 1Q26), declining QoQ due to factors including regional pricing strategies, sales split across distribution channels, and the proportion of digital vs. physical sales. 

The big news that probably influenced trading on the KOSDAQ today was the revised guidance due to disappointing sales of Crimson Desert. Pearl Abyss put its best spin on the situation.

From the Q2 2026 earnings letter

2Q26 performance came in below guidance due to factors including sales splits across distribution channels for Crimson Desert, regional pricing strategy differences, time lags between sell-through and revenue recognition for physical packages, and revenue deferrals for refund guarantees. Accordingly, we provide updated guidance reflecting actual first-half performance and revised estimates. 

2026 operating revenue for game is expected to come in at KRW 709.8~743.8 billion. 

• Operating revenue from Black Desert is projected to be KRW 239~244.6 billion, which is approximately a decrease of 4~7% YoY. 
• Operating revenue from Crimson Desert is projected to be KRW 468.9~497.3 billion. 

2026 operating profit is expected to record KRW 315.5~345.2 billion.  

• Operating profit is expected to increase by approximately 1,259~1,387% YoY, thanks to solid Black Desert performance and Crimson Desert launch, and operating profit margin is anticipated to reach 44.4~46.4%.

In blunt terms, Pearl Abyss revised its guidance for CD sales down 30% from the initial expectations given to investors. The result of the disappointing sales results in a 22% decrease in expected revenue for 2026 and an approximately 38% decrease in profits.

The downwards revision does affect the dividend plan Pearl Abyss announced earlier this year:

To enhance shareholder value, we announced a shareholder return policy after comprehensively considering our financial structure, business environment, and future investment plans. We plan to initiate our first dividend payout based on FY2026 performance, with the annual dividend scale set at the higher of KRW 10.0 billion or 10% of net profit. 

Total dividend payouts will still exceed the minimum of ₩10 billion but fall 38% less than originally thought.

The bad news of the revised guidance probably overshadowed the news of DokeV having an expected release window of the second quarter of 2028. At the end of the trading day, the price of Pearl Abyss stock had tumbled 14.5% down to ₩31,550. Since word of the divestment of CCP Games (now Fenris Creations) back on 29 April the stock price has fallen 47.9%.

From Google as seen on 12 August 2026