PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Dragonfly shows narrowing operating losses and an active new-title pipeline, but it is still navigating a trading suspension and listing eligibility review that has continued since March 2025.
2025 revenue came to KRW 15.88bn with an operating loss of KRW 1.94bn, a marked narrowing from the prior year.
Trading has been suspended since March 2025 following a disclaimer of audit opinion; a 2026 unqualified opinion resolved the formal delisting trigger, but a substantive listing eligibility review is still underway.
The flagship IP title Special Force Remastered is moving from early access toward full launch, while the Japan co-developed title Downdown Town also awaits release.
Total equity fell sharply from KRW 56.0bn in 2022 to KRW 5.5bn in 2025, pushing the debt ratio up to 139.3%.
The company has pursued balance-sheet repair via CB conversion and cost restructuring, but the exchange's final decision after the improvement period is still pending.
Dragonfly is a first-generation Korean online game developer that built its brand recognition through the first-person shooter Special Force, launched in 2004.
According to company disclosures, Dragonfly and its subsidiary DF Lab focus on online and mobile content software development and distribution, while also operating functional film and automotive sound-absorption material businesses alongside gaming.
In the game division, the company is attempting a revenue rebound through an FPS remaster and expansion into new mobile IP, while the film and sound-insulation segment provides a comparatively steadier industrial-goods revenue base.
The core IP, Special Force, has been cited as having served over 90 countries since its 2004 launch and was the first Korean FPS title to establish a professional league.
Special Force Remastered, a reimagining of this IP on Unreal Engine 5, was directed by original developer and Managing Director Park Chul-seung as executive producer.
A new growth driver is Downdown Town (DDT), a strategy defense mobile game co-developed with Japan's Funcrew Japan, which drew attention for involving veteran Japanese game producer Yoshiki Okamoto.
The company is also extending its development capability into healthcare through Guardians DTx, an ADHD digital therapeutic co-developed with Skonec.
Competitively, the domestic FPS and casual game market is crowded with new releases from larger publishers, and Dragonfly is pursuing a niche strategy centered on rebooting legacy IP and small-scale collaborative development.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩4.1B | -₩200M | −6.0% |
| 2025Q3 | ₩4.2B | -₩400M | −10.5% |
| 2025Q4 | ₩3.4B | -₩800M | −22.7% |
| 2026Q1 | ₩2.9B | -₩500M | −18.3% |
| 2026Q2 | ₩2.7B | -₩300M | −10.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩7.1B | -₩9.6B | -₩14.4B | −135.2% | −25.8% | 17.9% |
| 2023 | ₩16.6B | -₩13.3B | -₩27.7B | −80.2% | −96.5% | 32.6% |
| 2024 | ₩25.6B | -₩9.6B | -₩14.1B | −37.7% | −106.1% | 75.7% |
| 2025 | ₩15.9B | -₩1.9B | -₩8.9B | −12.2% | −159.7% | 139.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Dragonfly's annual revenue rose from KRW 7.1bn in 2022 to KRW 16.6bn in 2023 and KRW 25.6bn in 2024, before declining to KRW 15.9bn in 2025.
The operating loss narrowed sharply from KRW 9.6bn in 2022 and KRW 13.3bn in 2023 to KRW 9.65bn in 2024 and then KRW 1.94bn in 2025, with the operating margin improving from -37.7% in 2024 to -12.2% in 2025.
Net loss attributable to owners also narrowed for three consecutive years, from KRW 27.65bn in 2023 to KRW 14.05bn in 2024 and KRW 8.86bn in 2025.
On a quarterly basis, 2025 Q2 revenue was KRW 4.09bn with an operating loss of KRW 0.25bn, and Q3 revenue was KRW 4.15bn with an operating loss of KRW 0.43bn, both relatively stable, but Q4 revenue fell to KRW 3.38bn while the owners' net loss surged to KRW 6.36bn, an unusually large figure compared with other quarters.
Into 2026, Q1 revenue was KRW 2.93bn with an operating loss of KRW 0.54bn, and Q2 revenue was KRW 2.72bn with an operating loss of KRW 0.28bn; revenue was lower than in 2025, but the net loss shrank considerably to KRW 0.49bn and KRW 0.32bn respectively.
Total equity fell steadily from KRW 56.0bn in 2022 to KRW 28.4bn in 2023, KRW 13.2bn in 2024, and KRW 5.5bn in 2025, while the debt ratio climbed from 17.9% to 32.6%, 75.7%, and 139.3% over the same period.
Operating cash flow was negative throughout 2022-2025, though the outflow narrowed to KRW 1.49bn in 2025 from KRW 6.92bn in 2024.
Overall, while top-line revenue has contracted, cost restructuring appears to have meaningfully narrowed losses, and further disclosure would be needed to clarify whether the large Q4 2025 net loss reflected one-off items.
Korea's game industry continues to see intense new-release competition led by large publishers, with the FPS genre particularly exposed to competition from major global IPs.
Dragonfly's revived Special Force IP carries symbolic weight as the title behind Korea's first FPS professional league, but the company faces the dual challenge of attracting new users and rebuilding an esports ecosystem in the current market.
In the mobile strategy-defense genre, a collaborative title like Downdown Town represents an attempt to differentiate through combined development capability with an overseas partner.
Meanwhile, the digital therapeutics (DTx) market in Korea remains at an early stage, and the designation of Guardians DTx as an innovative medical device by the Ministry of Food and Drug Safety is notable as a game developer's foray into healthcare.
In terms of scale, as a small-cap KOSDAQ game stock, Dragonfly has more limited marketing and development resources than larger publishers, which increases the volatility of new-title outcomes.
From a cycle standpoint, the company is in a restructuring phase where revenue is contracting even as losses narrow, making the commercial performance of upcoming titles a key determinant of future earnings direction.
The most imminent event is the full launch of Special Force Remastered, which, according to an Inven interview, the company has scheduled for noon on September 17, 2026.
The company has said it will first stabilize domestic service before expanding to a global service including English-speaking markets later this year, and is also preparing to revive the Special Force World Championship esports league.
On the listing eligibility front, following submission of an improvement plan in June 2026, the improvement period ends on September 24, 2026, after which the company must submit an implementation report and an expert confirmation letter within 15 business days, with the exchange expected to convene a listing review committee within 20 business days of that filing to make a final delisting determination.
The company has indicated it intends to use this month's title launch performance to support its case in the exchange review.
On the balance-sheet side, the improvement plan centers on capital enhancement through third-party allotment capital increases, fixed-cost reduction, and strengthened internal controls over disclosure and fundraising.
In addition, the planned sale of long-held investment assets is expected to bring in roughly KRW 1.8bn in cash, which should provide some near-term operating liquidity support.
Overall, the coming months represent a period where new-title commercial performance and the exchange's final decision converge, and the outcomes of both will shape the company's future direction.
Dragonfly's shares have been suspended from trading since March 2025; while a 2026 unqualified audit opinion resolved the formal delisting trigger, a substantive listing eligibility review is still underway, meaning market price formation itself remains constrained.
Against this backdrop, conventional valuation metrics such as price-to-book need to be read together with the multi-year history of sharply eroding equity.
On the earnings side, operating and net losses have shown a multi-year narrowing trend, but this is occurring alongside near-complete capital impairment and shrinking revenue, making it difficult to judge financial stability from loss reduction alone.
No dividends have been paid in recent years amid continued net losses. Investors should also consider that whether and when trading resumes, and the market price that forms afterward, could materially change the meaning of the metrics currently displayed.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
The 2025 operating loss shrank sharply to KRW 1.94bn from KRW 9.65bn in 2024, and the company's CFO said operating expenses were dramatically cut through personnel restructuring and salary give-backs.
Net losses in 2026 Q1 and Q2 also narrowed to KRW 0.49bn and KRW 0.32bn respectively compared with the second half of 2025. This suggests the cost-restructuring effort is bearing some fruit.
Special Force Remastered, a reinterpretation of the core IP, is scheduled to launch fully on September 17, 2026, with the company also preparing global service expansion and a revived esports league.
Multiple additional growth drivers are progressing in parallel, including the Japan co-developed title Downdown Town and the ADHD digital therapeutic Guardians DTx. Having several titles queued simultaneously partially diversifies single-title failure risk.
Financial investor HPNK Investment exercised conversion rights on its entire convertible bond holding, becoming the largest shareholder and boosting paid-in capital.
The company has proposed third-party allotment capital increases and stronger internal controls over disclosure and fundraising as core elements of its improvement plan. A planned sale of long-held investment assets is also expected to bring in roughly KRW 1.8bn in cash, which should partly aid near-term liquidity.
Trading has remained suspended since March 2025 following a disclaimer of audit opinion tied to going-concern uncertainty. While a 2026 unqualified opinion resolved the formal delisting trigger, a substantive listing eligibility review is ongoing, with the improvement period ending September 24.
Depending on the outcome, paths ranging from resumption of trading to an additional improvement period or delisting all remain open.
Total equity fell sharply for four consecutive years, from KRW 56.0bn in 2022 to KRW 5.5bn in 2025, while the debt ratio rose markedly from 17.9% to 139.3% over the same period.
According to a thebell report, repeated delays in capital increases and CB issuances brought the company close to near-total capital impairment. This financial structure could pressure the company's viability if further fundraising attempts fail.
Annual revenue fell from KRW 25.6bn in 2024 to KRW 15.9bn in 2025, and quarterly revenue has also trended lower, from KRW 4.15bn in 2025 Q3 to KRW 2.72bn in 2026 Q2. While losses have narrowed, this has relied heavily on cost cuts, and the durability of the improvement could be limited without revenue growth. If new titles fail to gain commercial traction, the revenue contraction trend could persist.
Depending on the substantive listing eligibility review outcome, results ranging from resumption of trading to outright delisting remain possible. Multiple procedural gates remain, including submission of an implementation report after the improvement period and deliberation by the exchange's listing review committee. Delays or an unfavorable review outcome could directly affect shareholder value.
The FPS and mobile strategy-defense genres are crowded with new releases from large publishers, making commercial success difficult to predict in advance. Whether user response during the Special Force Remastered early access period will carry through to the full launch remains uncertain. If new titles underperform expectations, the timing of a revenue recovery could be delayed.
If the third-party allotment capital increase central to the improvement plan proceeds further, existing shareholders could face dilution. As seen in the prior change of largest shareholder through CB conversion, there is also an ongoing possibility of governance shifts during the fundraising process. If fundraising does not proceed as planned, improvement in the financial structure could be delayed.
The scheduled full launch date of Special Force Remastered; early user reception and revenue contribution could influence both future earnings and the exchange's review.
The end date of the improvement period for the listing eligibility review; whether the company submits the implementation report and expert confirmation letter within the following 15 business days should be checked.
The point at which the KRX listing review committee makes a final decision on delisting or granting an additional improvement period, a pivotal moment for whether trading resumes.
The confirmed launch schedule and early performance of the Japan co-developed title Downdown Town should be monitored.
Whether the loss-narrowing trend continues and whether new-title effects are actually reflected in revenue and profitability should be confirmed.
Dragonfly has steadily narrowed its losses through cost restructuring even as revenue contracted and capital eroded over multiple years.
While a 2026 unqualified audit opinion resolved the formal delisting trigger, the substantive listing eligibility review and improvement period process have not yet concluded, leaving the resumption of trading itself uncertain.
Against this backdrop, the full launch of the core IP title Special Force Remastered is imminent, alongside multiple other growth initiatives including a Japan co-developed title and a digital therapeutics business.
However, the financial structure remains fragile given the sharp decline in total equity and rising debt ratio, and the possibility of shareholder dilution from further fundraising cannot be ruled out. Investors should monitor both the commercial performance of new titles and the exchange's final review outcome. This report is for informational purposes only and does not constitute a buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.