Shift Up said on Monday it posted second-quarter consolidated operating revenue of 55.7 billion won, operating profit of 28.1 billion won and quarterly net profit of 41.7 billion won.

From the previous quarter, operating revenue rose 17.8 percent, operating profit gained 30.7 percent and net profit increased 10.4 percent. From a year earlier, operating revenue fell 50.4 percent, operating profit dropped 58.8 percent and net profit declined 18.7 percent.

Shift Up said the year-on-year decline was largely due to base effects from the launch of the PC version of "Stellar Blade" in the second quarter of last year. In last year's second quarter, Shift Up recorded operating revenue of 112.4 billion won, of which "Stellar Blade" accounted for 65.7 billion won.

Nikke's 3.5th anniversary lifts quarter-on-quarter results

The rebound from the previous quarter was led by "Goddess of Victory: Nikke". Second-quarter Nikke operating revenue was 43.3 billion won, up 32.4 percent from the previous quarter. It was down 4.1 percent from a year earlier. "Stellar Blade" operating revenue was 8.8 billion won, down 31.6 percent from the previous quarter and down 86.6 percent from a year earlier. Other operating revenue was 3.6 billion won.

After its 3.5th anniversary update in April, Nikke ranked No. 1 in peak sales rankings on Apple App Store and Google Play in South Korea and Japan. On a global service basis, sales increased from both a year earlier and the previous quarter. Its China service, "Goddess of Victory: New Hope", is strengthening its medium- to long-term service foundation by narrowing the content gap with the global service and expanding large-scale content.

Shift Up said Nikke's live service model has established a pattern in which sales rankings rise again in key markets including South Korea and Japan with each major update such as the 1.5th and 2nd anniversaries. It is preparing a fourth anniversary update in the second half with larger and more polished content. It plans to keep expanding IP touchpoints outside the game, including orchestra and band performances, pop-up stores and expanded merchandise.

"Stellar Blade" has maintained steady sales in the PC and console markets since launch. In the second quarter, it continued to draw new users through seasonal promotions and the unveiling of a new title. In the second half, it plans to maintain sales momentum by expanding to new platforms including Nintendo Switch2.

Costs rise but operating margin returns to 50 percent range

Second-quarter operating expenses were 27.6 billion won, up 7 percent from the previous quarter but down 37.5 percent from a year earlier. Related operating expenses were reflected as Unbound was incorporated as a consolidated subsidiary.

Personnel expenses fell 4.1 percent from the previous quarter to 15.6 billion won as the effect of one-off incentives paid in the previous quarter faded. Variable costs rose 22.2 percent quarter-on-quarter to 6.0 billion won and fixed costs increased 29.6 percent to 6.0 billion won.

Profitability also improved as the rise in revenue outpaced the increase in costs. The operating margin rose 5 percentage points to 50.5 percent in the second quarter from 45.5 percent in the first quarter. EBITDA rose to 31.5 billion won from 24.3 billion won the previous quarter, and the EBITDA margin was 56.5 percent.

Total headcount was 442, up 24.5 percent from the previous quarter. Development staff rose 24.4 percent to 387. Shift Up said it is gradually adding staff to develop new IP and internalise PC and console publishing capabilities, and with Unbound's consolidation it expects operating expenses including personnel costs to increase in stages.

The company said it views the rise in costs as a preemptive investment for future growth and will manage the balance with profitability under a policy of efficient spending.

Non-operating profit and loss came to 26.2 billion won, staying at a similar level to the previous quarter due to foreign exchange-related gains and returns on fund management. As a result, profit before corporate tax was 53.8 billion won and quarterly net profit was 41.7 billion won.

Shift Up to publish directly from next "Stellar Blade" title

Shift Up is expanding development of sequels and new IP alongside long-term services for existing IP. At "Summer Game Fest 2026" in June, it unveiled for the first time the official title and an in-game trailer for the next "Stellar Blade" title, "Stellar Blade: Blood Rain".

As of late July, the trailer had recorded cumulative views of 1.61 million on the official IGN channel. Shift Up said it will sequentially disclose game information after securing sufficient development time and implementing the targeted level of completeness.

From "Stellar Blade: Blood Rain", Shift Up will shift to a self-service structure in which it publishes directly. It plans to expand combat elements that were well received in the previous title, while strengthening the universe and story. It also plans to roll out marketing strategies directly that reflect the characteristics of the IP through self-publishing. The goal is to deliver results above the previous title based on the fandom it has built and its self-service capabilities.

It is developing the new flagship title "Project Spirit" with the aim of unveiling it in the second half of this year. Project Spirit is an AAA-grade title based on an eastern fantasy world and aimed at a global cross-platform live service. Shift Up plans to apply its existing development capabilities and live service experience gained through Nikke to the project.

It is also developing new IP in parallel beyond the announced projects. Shift Up said it is developing additional new IP alongside advancing existing IP and will continue investing to diversify its development pipeline. It said recent hiring underway is also part of expanding staffing to build its next growth lineup.