KOSDAQGames208640

Thumbage

₩696▼ 9.26%2026-10-02 close

Market Cap

₩9.7B

Turnover

₩200M

Volume

330,000 shares

Shares out.

13.9M

PER

—

PBR

0.9×

EPS

-₩496

Dividend Yield

0.00%

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

Report overview

Shrinking Revenue, Betting on Two New Titles

Amid a multi-year decline in both revenue and equity, the company has restructured its capital base via a reverse split and rights offering while attempting a turnaround through two new game launches.

1
Annual revenue fell more than half from KRW 12.52 billion in 2022 to KRW 6.02 billion in 2025, with quarterly revenue stalling in the KRW 1 billion range.
2
Operating losses narrowed from KRW -16.48 billion in 2022 to KRW -7.88 billion in 2025, staying around KRW -0.98 billion and KRW -1.20 billion in Q1 and Q2 2026, respectively.
3
The company carried out a 10-to-1 reverse stock split in June 2026 followed by a KRW 12.5 billion rights offering in August 2026, restructuring its capital base.
4
The company is targeting the launch of two new titles, 'Paladog Invenrise' and 'Project RB,' in the second half of this year in an attempt to revive its game business.
5
Non-core issues also persist, including parent company 4:33's financial strain, a sharply expanded convertible bond and bond-with-warrant issuance ceiling, and a declared pivot into virtual asset business.

Business structure

ThumbAge is a small-to-mid-cap KOSDAQ-listed mobile game developer and publisher whose largest shareholder is 4:33 Creative Lab.

The company's main titles include the team-battle RPG 'GODS RAID,' the fighting-action title 'Boxing Star,' the MMORPG 'Dekaron M/G,' and the idle game 'Yeonghung Kiugi.' Its recent revenue mix is heavily concentrated, with Boxing Star accounting for 81%, Dekaron M/G 14%, GODS RAID 4%, and Yeonghung Kiugi 1%, reflecting a structure highly dependent on a single title.

Most of its in-house development teams have reportedly been dissolved, leaving mainly Champion Studio, the developer of Boxing Star. Observers have pointed out that revenue from most of its existing titles has fallen sharply since launch, with profitability remaining weak.

The mobile game market is dominated by intensifying competition among large publishers, meaning smaller companies like ThumbAge see their results swing heavily on the success or failure of new titles.

Separately, the company holds a stake in The Black Label acquired via a venture fund investment of KRW 2 billion in 2021, which has drawn market attention apart from its core game business.

The company has stated a plan to build a recovery foundation for its game business through new title launches and genre diversification.

Earnings trend

Quarterly revenue · Operating profit

₩1.8B-₩2.8B25Q2₩1.3B-₩1.5B25Q3₩1B-₩1.2B25Q4₩1B-₩1B26Q1₩1B-₩1.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩12.5B-₩16.5B2022₩11.6B-₩12.8B2023₩14B-₩10.2B2024₩6B-₩7.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩1.8B	-₩2.8B	−156.1%
2025Q3	₩1.3B	-₩1.5B	−119.8%
2025Q4	₩1B	-₩1.2B	−119.5%
2026Q1	₩1B	-₩1B	−96.9%
2026Q2	₩1B	-₩1.2B	−118.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩12.5B	-₩16.5B	-₩21.5B	−131.6%	−62.3%	39.3%
2023	₩11.6B	-₩12.8B	-₩12.4B	−110.9%	−47.5%	49.9%
2024	₩14B	-₩10.2B	-₩6.9B	−72.8%	−30.4%	10.8%
2025	₩6B	-₩7.9B	-₩9.3B	−130.9%	−71.7%	10.2%

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

Earnings analysis

Confirmed results show annual revenue fluctuating from KRW 12.52 billion in 2022 to KRW 11.56 billion in 2023 and KRW 13.98 billion in 2024, before sharply dropping to KRW 6.02 billion in 2025.

Operating loss narrowed for four consecutive years, from KRW -16.48 billion in 2022 to KRW -12.82 billion in 2023, KRW -10.17 billion in 2024, and KRW -7.88 billion in 2025, a trend attributable to cost cuts and organizational downsizing even as revenue fell.

However, net loss attributable to owners narrowed from KRW -21.45 billion in 2022 to KRW -12.35 billion in 2023 and KRW -6.89 billion in 2024, then widened again to KRW -9.27 billion in 2025, suggesting non-operating factors offset the improvement in operating loss.

On a quarterly basis, revenue declined from KRW 1.78 billion in Q2 2025 to KRW 1.28 billion in Q3, KRW 1.00 billion in Q4, and roughly KRW 1.01 billion in both Q1 and Q2 2026, stabilizing at a low level.

Operating loss over the same period generally narrowed, moving from KRW -2.78 billion to KRW -1.53 billion, KRW -1.19 billion, KRW -0.98 billion, and KRW -1.20 billion.

In contrast, net loss attributable to owners widened sharply to KRW -3.41 billion in Q4 2025, far exceeding the operating loss of KRW -1.19 billion for that quarter, implying a one-off non-operating loss item.

Total equity fell continuously from KRW 34.42 billion in 2022 to KRW 12.93 billion in 2025, while the debt ratio dropped sharply from 49.9% in 2023 to 10.8% in 2024 and 10.2% in 2025.

Operating cash flow remained negative across all four years, ranging from KRW -11.88 billion to KRW -3.96 billion, reflecting a continued lack of cash generation from operations.

Industry analysis

Korea's mobile game market is increasingly consolidating around large publishers and top-tier IPs, narrowing the survival conditions for small and mid-sized developers.

Indeed, the sharp year-over-year revenue decline in ThumbAge's first-quarter 2026 results was attributed to intensifying competition in the mobile game market and the maturing life cycle of its existing live-service titles.

This reflects an industry-wide dynamic in which user acquisition costs are rising while the revenue contribution of legacy titles naturally declines.

As new genres such as extraction shooters and casual action games gain global traction, domestic small and mid-cap developers that were previously focused on MMORPGs and collection-based RPGs are also attempting genre diversification.

Large publishers, by contrast, possess substantial marketing resources and global distribution networks, structurally widening the competitive gap with smaller peers.

In this environment, a company like ThumbAge, which is highly dependent on a single title for revenue, sits in a position where earnings volatility can expand significantly depending on the success or failure of new releases.

There has also been a broader industry trend of smaller game companies undertaking capital restructuring through reverse splits and rights offerings amid concerns over capital impairment, and ThumbAge's recent moves fall in line with this pattern.

Outlook

The company has confirmed plans to launch two new titles in the second half of this year: the defense-puzzle RPG 'Paladog Invenrise' and the metaverse casual game 'Project RB,' followed by the strategy simulation title 'Project AR' in March 2027 and the idle RPG 'Project EH' in September 2027, according to company disclosures.

Over the longer term, it is developing 'Project H' (also referred to as 'Project FPS'), an extraction-shooter title built on Unreal Engine 5 for PC and console platforms targeted for a March 2028 launch, and began marketing efforts in July 2026 by releasing related videos in sequence.

The company stated that proceeds from the roughly KRW 12.5 billion rights offering completed in August 2026 would be directed toward new title development costs and global marketing resources.

However, the company itself has cautioned that specific launch timing will be determined based on development completeness, test results, and market conditions, and that actual schedules may change.

After this year's launches, the company plans to progressively roll out follow-up projects using IP inherited from its parent company and expand into new genres to build an IP-driven business model.

Separately, at an extraordinary shareholders' meeting in August 2025, the company added blockchain platform development, virtual currency investment business, and security token offering-related business to its articles of incorporation, generating both market interest and skepticism about its direction beyond gaming.

New title launch performance and the actual execution of raised capital are cited as the key variables that will shape future earnings trends.

Valuation

PER

—

PBR

0.9×

ROE

-48.3%

EPS

-₩496

BPS

₩752

Dividend per share

₩0

The company's equity capital has continued to shrink over multiple years, while the stock trades at a level discounted relative to net asset value.

Years of accumulated deficits were addressed structurally through a 10-to-1 reverse stock split in June 2026, after which fresh capital was injected via the August rights offering, further adjusting the capital structure.

The company currently pays no dividend, meaning dividend-related metrics are not comparable to peers that do distribute dividends.

On the earnings side, operating losses have shown a gradual narrowing trend over several years, but the company remains in a loss-making position, making profit-based valuation metrics difficult to apply at this stage.

Market observers cite both the recovery trajectory of the core game business and the potential value of non-operating assets such as the stake in The Black Label, along with whether the announced virtual-asset business initiative is actually executed, as variables relevant to how the stock is assessed.

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

Bull factors

Narrowing Operating Loss Trend

Operating loss narrowed for four consecutive years, from KRW -16.48 billion in 2022 to KRW -7.88 billion in 2025, and remained at roughly KRW -0.98 billion and KRW -1.20 billion in Q1 and Q2 2026, respectively.

This reflects concurrent cost reduction and organizational downsizing even as revenue declined, suggesting the loss structure is gradually being refined. However, net loss widened sharply to KRW -3.41 billion in Q4 2025, indicating that non-operating factors also introduce volatility.

New Title Pipeline Activation

The company has confirmed the launch of 'Paladog Invenrise' and 'Project RB' this year and disclosed a roadmap of five new titles through 2027-2028. Proceeds from the KRW 12.5 billion rights offering are earmarked for development costs and global marketing, providing a funding base. However, as the company itself noted, actual launch timing may change depending on development progress.

The Black Label Stake Value Narrative

ThumbAge holds a 6.31% stake in a venture fund that invested KRW 2 billion in The Black Label in 2021.

Market interest in the potential value of this stake has continued amid the global success of The Black Label's artists, a Series B funding round in November 2025 based on a KRW 1 trillion valuation, and subsequent reports of discussions on additional investment from Krafton and Tencent Music.

Investment industry sources have cited the possibility of substantial gains if the stake were monetized, though this remains at a discussion stage and is not yet finalized.

Bear factors

Weakening Revenue Base

Annual revenue plunged from KRW 13.98 billion in 2024 to KRW 6.02 billion in 2025, and quarterly revenue has stagnated in the low KRW 1 billion range.

Revenue from most existing titles has declined sharply since launch, and with 81% of revenue concentrated in a single title, Boxing Star, single-IP dependency risk is significant. With most in-house development teams reportedly dissolved, shrinking internal development capacity is also a concern.

Parent Company Financial Strain Linkage Risk

Parent company 4:33 has reportedly recorded losses over multiple years, and in August 2025 ThumbAge amended its articles of incorporation to sharply raise its convertible bond and bond-with-warrant issuance limits to KRW 300 billion each.

This figure exceeded the company's market capitalization at the time by more than fifteen-fold, leading market observers to question whether the move went beyond typical funding purposes and to raise concerns it could serve as a fundraising channel for the parent.

Actual capital inflow has reportedly not yet occurred, but concerns over shareholder dilution could grow if large-scale mezzanine issuance is executed in the future.

Execution Uncertainty in the Virtual Asset Pivot

In August 2025, the company added blockchain and virtual currency investment businesses to its articles of incorporation via an extraordinary shareholders' meeting, but a source familiar with the company indicated that concrete internal plans were unclear.

Around the same period, core development staff were reportedly cut and the organization was downsized, raising questions about the gap between stated intent and actual capability to pursue the new business.

Operating a virtual-asset-related business requires substantial capital, and the company's cash position has been noted as limited.

Risk factors

Earnings

Amid four consecutive years of revenue decline, operating cash flow has remained negative in every year, reflecting a persistent lack of cash generation. If new titles fail to perform as expected, the revenue base could shrink further.

There have also been quarters where net loss expanded far more than operating loss, indicating non-operating loss volatility that warrants monitoring.

Capital Structure

Total equity has continuously declined from KRW 34.42 billion in 2022 to KRW 12.93 billion in 2025, and in the first half of 2026 the company carried out a 10-to-1 reverse stock split followed by a rights offering.

With large convertible bond and bond-with-warrant issuance limits in place, the potential for share dilution remains if such instruments are actually issued in the future. Repeated capital reductions aimed at offsetting accumulated deficits could weigh on minority shareholder confidence.

Governance and New Business

Concerns have been raised that parent company 4:33's financial condition, combined with an overlapping CEO structure, could cause group-level funding needs to influence the listed subsidiary's decision-making.

Whether the declared virtual asset business pivot will actually materialize into a real business remains uncertain, and any deviation from stated plans could affect market confidence. Changes in management, including CEO transitions, are also a factor to watch in terms of continuity of business direction.

What to watch next

September 2026
Confirm whether 'Paladog Invenrise,' originally targeted for an August launch, has actually been released, and check its early performance in downloads and revenue rankings.
Around November 2026
Track the global launch schedule and early performance indicators for 'Project RB,' along with the Q3 2026 earnings disclosure, to assess whether the revenue and profit/loss trends continue.
Q4 2026 through early 2027
Check whether the additional investment in The Black Label reportedly under discussion with Krafton and Tencent Music is finalized, and if so, how the valuation is determined.
At the time of any future CB/BW issuance disclosure
Monitor whether actual issuance occurs within the KRW 300 billion CB/BW ceiling expanded in August 2025, and if so, verify the stated use of proceeds and allottees.
Targeted for March 2027
Verify whether the strategy simulation title 'Project AR' launches on its targeted schedule, and how the performance of earlier titles affects investment plans for the follow-up lineup.

Overall view

ThumbAge sits in a structural downturn where both revenue and equity have declined together over multiple years, and it is now in a phase of restructuring its capital base through a reverse split and rights offering in the first half of 2026 while attempting a turnaround with two new titles.

Operating losses have narrowed for four consecutive years but the company remains loss-making, and net losses have shown significant quarterly volatility driven by non-operating factors.

With most revenue dependent on a single title, the success or failure of new releases stands as the key variable shaping future performance.

Layered on top of this are non-core issues including an expanded convertible bond and bond-with-warrant issuance ceiling tied to the parent company's financial strain, and a declared pivot into virtual asset business, both of which warrant close attention to new title performance and actual capital deployment.

The potential value narrative around the non-operating Black Label stake also remains a point of market interest, though it remains at an unconfirmed discussion stage. Overall, this stock sits at an intersection of an attempted core business recovery, capital market events, and governance-related uncertainty.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.