Shift Up said on Sunday it posted first-quarter consolidated revenue of 47.3 billion won, operating profit of 21.5 billion won and quarterly net profit of 37.8 billion won.

Revenue rose 12 percent from a year earlier, but operating profit fell 18.1 percent. Quarterly net profit rose 40.8 percent. Operating margin was 45.5 percent, down 16.7 percentage points from a year earlier.

Revenue rose from a year earlier, but profitability weakened as operating expenses increased and revenue from its main IP fell from the previous quarter. Revenue from "Goddess of Victory: Nikke" was 32.7 billion won, up 1.2 percent from a year earlier but down 24.7 percent from the previous quarter. Revenue from "Stellar Blade" was 12.9 billion won, up 84 percent from a year earlier but down 24.9 percent from the previous quarter. Other operating income was 1.7 billion won.

Shift Up explained that it focused on managing global user satisfaction and retention for "Goddess of Victory: Nikke" ahead of a large-scale 3.5-year anniversary event. In global markets, it confirmed a positive response to the New Year event and an update tied to the "Lycoris Recoil" collaboration. Its China service, "Goddess of Victory: New Hope," is gradually narrowing the content gap with the global build and securing a basis for mid- to long-term service.

The recent 3.5-year anniversary update was presented as an example showing service momentum ahead of a fourth anniversary event in the second half of the year. The company said it introduced new characters and large-scale content in the 3.5-year anniversary update and ranked No. 1 in peak revenue on both iOS and Android markets in South Korea and Japan. It reached a high of No. 4 on iOS in Taiwan and a high of No. 17 on iOS in the United States. The company plans to maintain Nikke service momentum through season events in the first half and the fourth anniversary event in the second half.

"Stellar Blade" is centered on long-term sales management. Shift Up said it minimized the decline in sales through a PC promotion in February and is maintaining an "overwhelmingly positive" rating on the Steam platform. The PS5 version drove a rebound in sales through a PlayStation Store discount promotion in February.

The company plans to broaden brand awareness and maintain sales momentum through global IP collaborations, seasonal and holiday promotions and strategic discounts until it launches its next title. It is also actively reviewing additional platform expansion.

◆ Costs and profitability

First-quarter operating expenses were 25.8 billion won, up 61.4 percent from a year earlier and down 4.5 percent from the previous quarter. Labor costs rose 19.5 percent from the previous quarter to 16.2 billion won due to incentive payments. Variable costs fell 14.4 percent from the previous quarter to 4.9 billion won due to lower fees related to "Stellar Blade", while fixed costs fell 39.6 percent to 4.6 billion won due to lower outsourcing costs for "Goddess of Victory: Nikke".

Costs fell from the previous quarter, but revenue declined more, and higher labor costs reflecting incentive payments lowered the operating margin. Total headcount was 355, up 8.9 percent from a year earlier, including 311 developers.

Despite the decline in operating profit, net profit increased from a year earlier. Non-operating profit and loss rose 38.9 percent from the previous quarter to 25.7 billion won, driven by foreign exchange-related gains from exchange-rate fluctuations and returns from fund management. Operating margin fell to 45.5 percent, but quarterly net margin was 79.9 percent due to higher non-operating profit and loss.

◆ New-title strategy and pipeline

Shift Up sees the period from this year onward as a time for a new-title cycle and strengthening its in-house service capabilities. The company plans to disclose information within the year on the next title in the "Stellar Blade" series and on "Project Spirit." It also added multiple PC and console development pipelines through Unbound joining. Through this, it aims to secure multiple IPs not only in live service games but also in PC and console games.

It plans to release both the next title in the "Stellar Blade" series and a new Unbound title as in-house services. The company explained that switching to a direct publishing system would allow it to lead marketing strategies that reflect each IP's distinct identity. To that end, it said talent with experience launching and servicing major global titles is also joining.

"Project Spirit" is Shift Up's next flagship title in preparation. The company said it is developing the title under an efficient and systematic process and will provide information on the new title within 2026.

Unbound is simultaneously developing multiple pipelines spanning high-end titles and small- to mid-sized titles, based on a development team of about 60 people. Shift Up said a significant portion of Unbound's developers have experience developing and producing hits with top-level global IP.

Shareholder return measures are also under additional review. Shift Up said it is considering an additional new treasury stock buyback program after the second half of 2026 to repay shareholder trust, and it will provide details on the size and timing later.