Shift Up's operating profit in the third quarter more than halved from a year earlier as revenue fell for "Goddess of Victory: NIKKE" and "Stellar Blade". It also posted a quarterly net loss due to foreign-currency valuation and translation losses. The company said it will pursue a recovery by updating existing games and expanding platforms, and will also cancel 320,000 treasury shares to boost shareholder value.

Shift Up said on Monday it posted third-quarter consolidated operating revenue of 46.2 billion won and operating profit of 20.7 billion won. That was down 38.8 percent and 58.2 percent, respectively, from a year earlier. From the previous quarter, they fell 17.1 percent and 26.4 percent.

Operating margin was 44.8 percent, down 20.8 percentage points from a year earlier and down 5.7 points from the previous quarter. Operating costs were 25.5 billion won, down 7.6 percent from the previous quarter, but the fall in revenue was larger.

Quarterly net profit and loss swung to a loss of 25.5 billion won. The company posted a 53.7 billion won loss in non-operating profit and loss as foreign-currency valuation and translation losses were reflected. It posted net profit of 41.7 billion won in the second quarter.

◆"NIKKE" and "Stellar Blade" revenue falls... pushing 4th anniversary update and platform expansion

Third-quarter operating revenue for "Goddess of Victory: NIKKE" was 35.3 billion won, down 20.6 percent from a year earlier and down 18.4 percent from the previous quarter. Revenue rose in the second quarter on the back of the service's 3.5th anniversary event, but in the third quarter it fell across all regions of the global service. A weaker dollar also increased the scale of the decline due to the won conversion effect.

Shift Up focused on live service operations in the third quarter by holding a summer season event, a collaboration with the "Persona" series and a bunny girl event.

In the fourth quarter, it is seeking a rebound in revenue through the fourth anniversary update held on Oct. 29. According to the company, it ranked No. 1 in revenue in South Korea and Japan immediately after the update. Through the fifth anniversary next year, it plans to strengthen story-focused direction and gradually introduce new features using SD characters.

Operating revenue for "Stellar Blade" was 5.9 billion won, down 78.6 percent from a year earlier and down 32.9 percent from the previous quarter. That reflected a natural decline in sales after its release on existing PC and console platforms.

To expand its sales base, Shift Up launched a Nintendo Switch 2 version of "Stellar Blade" globally on Nov. 6 under a self-service model. In September, it announced the release schedule and a collaboration with "Bayonetta" at Nintendo Direct and started pre-orders.

The company said early sales of the Switch 2 version are in line with internal expectations and are contributing to an increase in cumulative sales.

Other operating revenue was 5.0 billion won, up 48.7 percent from a year earlier and up 37.1 percent from the previous quarter. Most of it came from royalty income from IP licensing, reflecting an expanded business scope for "NIKKE" into figures and merchandise, a trading card game, music and performances. "Stellar Blade" is also expanding its IP business into areas such as a trading card game and music streaming.

◆Adjusting timing for unveiling "Project Spirit"... continuing new IP development

"Stellar Blade: Blood Reign", unveiled in June at "Summer Game Fest 2026", will secure sufficient development time to raise quality, the company said. According to the company, the in-game trailer released at the time recorded 1.78 million views on IGN's official channel as of late October.

The unveiling schedule for the new flagship title "Project Spirit" has been adjusted. It initially planned to reveal the game within this year, but changed the timing after considering major new releases by other game companies from the end of this year into early next year.

Shift Up said it recently completed build evaluations by development stage positively. It plans to unveil the game's world and gameplay at a time that can raise interest among global users. It will announce the specific timing as it is confirmed.

It will also unveil multiple new titles being developed by its subsidiary Unbound in sequence depending on their state of preparation.

Its development workforce is also growing. As of the end of the third quarter, total headcount on a consolidated basis was 460, up 18 from the previous quarter. Of those, development staff totaled 406, up 19.

The company expects operating costs to rise in the fourth quarter from the third quarter due to new hiring, performance incentives, outsourced development costs for "NIKKE" content and marketing costs for the Switch 2 version of "Stellar Blade". It plans to continue investment to develop new IP and secure self-publishing capabilities for PC and console platforms, while managing a balance with profitability.

◆Additional cancellation of 320,000 treasury shares... 650,000 shares this year

Shift Up also disclosed it held a board meeting on Monday and decided to cancel 320,000 treasury shares it holds. The planned cancellation date is Nov. 27, and the planned cancellation amount based on the previous day's closing price is 9.87 billion won.

The cancellation will be carried out on treasury shares already acquired. As a result, the total number of issued shares will fall, but capital stock will not decrease.

Shift Up canceled 330,000 treasury shares in March and will cancel an additional 320,000 shares this time, bringing the total number of shares canceled this year to 650,000. That is about 1.1 percent of the total number of issued shares before the cancellations.

The remaining treasury shares after the cancellation will be used as resources for employee compensation, and the plan to hold treasury shares will be approved at the annual regular shareholders meeting each year. Shift Up said it will continue shareholder returns while considering a balance between boosting shareholder value and investing for future growth such as developing new IP.