Shift Up FY2026 Q2 Earnings Release

Q2 2026
Earnings Release
2026.08.11

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Disclaimer
The financial and operating results in this material are based on preliminary financial statements and prepared for investors ‘ c onvenience;
please note that figures may change upon final closing of accounts.
The Company does not guarantee the accuracy or completeness of the financial and operating results described herein,
and assumes no obligation to update statements of fact as of the date of preparation; please take note.
Accordingly, this material shall not be used for any legal purpose with respect to investors’ investment outcomes,
and the Company assumes no responsibility or liability for any investment results arising from the use of the information pro vid ed herein.

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Contents
01. Q2 2026 Highlights
02. Earnings Summary
03. Revenue
04. Operating Expenses
05. Operating Profit & Net Profit
06. Q&A
Appendix
· Summary Financial Statements

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IP brand power driven by
a strong fan base
1
Growing anticipation
following the new title unveil
2
First reveal of
confirms strong global interest in the IP
First revealed at SGF (Summer Game Fest);
1.61mn views 1 on IGN’s channel, top -tier among
new -title reveals
Global: 3.5th anniversary
results reaffirm the IP’s brand power
3.5th anniversary successfully completed ;
peaked at No.1 revenue on Apple App Store &
Google Play in both Korea and Japan
Live service operating stably ahead of major
2nd half events (4th anniversary, winter event, etc.)
Note: 1As of end of July 2026
Targeting reveal within 2026
01. Q2 2026 Highlights

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02. Earnings Summary
Note: Q2 2026 results are preliminary figures based on consolidated financial statements and are subject to change upon exter nal audit
Q2 Earnings
Q2 2026: Revenue KRW 55.7bn, OP KRW 28.1bn, Net profit KRW 41.7bn
Category 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ
Operating revenue 112,383 75,499 64,430 47,309 55,724 -50.4% 17.8%
GoV : NIKKE 45,112 44,463 43,435 32,689 43,266 -4.1% 32.4%
Stellar Blade 65,719 27,693 17,185 12,904 8,831 -86.6% -31.6%
Others 1,552 3,343 3,810 1,716 3,626 133.6% 111.3%
Operating expense s 44,167 25,952 27,026 25,803 27,606 -37.5% 7.0%
Operating profit 68,215 49,548 37,403 21,506 28,118 -58.8% 30.7%
Operating profit margin 60.7% 65.6% 58.1% 45.5% 50.5% -10.2%(p) 5.0%(p)
Non -op . P&L (5,629) 18,512 18,510 25,705 26,210 Turnaround 2.0%
Equity method P/L – – 14,841 (820) (568) N/A 30.7%
Net Profit bef. Corp. Tax 62,586 68,059 70,755 46,390 53,759 -14.1% 15.9%
Net profit 51,306 54,628 58,649 37,796 41,736 -18.7% 10.4%
Net profit margin 45.7% 72.4% 91.0% 79.9% 74.9% 29.2%(p) -5.0%(p)
(Unit: M KRW, %)

61.9% 67.4%
60.9%
51.5%
56.5%
Note: Q2 2026 results are preliminary figures based on consolidated financial statements and are subject to change upon exter nal audit1 2Q25 was the launch quarter of the PC version; the YoY revenue decline ( −50.4%) reflects the new -release base effect
03. Revenue
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EBITDA
69,529
50,882
39,223
24,345 31,484
2Q25 3Q25 4Q25 1Q26 2Q26
(Unit: M KRW, %)
Q2 2026 revenue of KRW 55.7bn (QoQ +17.8%, YoY -50.4%1)
45,112 44,463 43,435 32,689 43,266
65,719
27,693 17,185
12,904 8,831
2Q25 3Q25 4Q25 1Q26 2Q26
NIKKE Stellar Blade Others
IP Revenue (Unit: M KRW)
112,383
75,499
64,430
47,309
• : 3.5th anniversary completed; solid revenue growth in its 4th year of service
➢ [Global] No.1 revenue in both Korea & Japan right after the update; Global revenue up both YoY and QoQ
➢ [China] Narrowing the contents gap with the global version; reinforcing the mid/long -term service base
• : Steady -seller sales momentum sustained by sequel reveal
➢ [Sales] Expanding new -user touchpoints via seasonal promotions and the sequel reveal at Summer Game Fest
55,724
Q2 Earnings

Note: Q2 2026 results are preliminary figures based on consolidated financial statements and are subject to change upon exter nal audit 1Salaries, bonuses, severance, and stock -based compensation; 2Commissions and fees, etc.; 3Depreciation & amortization, rent, and other costs; 4Includes independent directors and other non -executive directors (4), excludes interns; consolidated headcount basis; concurrent positions counted once
04. Operating Expenses
Category 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ
Total 335 329 339 355 442 31.9% 24.5%
Development 293 287 297 311 387 32.1% 24.4%
Exec. / Admin. 42 42 42 44 55 31.0% 25.0%
※ Quarterly Headcount 4 (Unit: Persons, %)
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Category 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ
Op. expenses 44,167 25,952 27,026 25,803 27,606 -37.5% 7.0%
Labor costs 1 16,441 13,977 13,589 16,240 15,572 -5.3% -4.1%
Variable costs 2 25,408 9,637 5,754 4,926 6,022 -76.3% 22.2%
Fixed costs 3 2,318 2,338 7,683 4,638 6,012 159.4% 29.6%
(Unit: M KRW, %)
Q2 2026 operating expenses of KRW 27.6bn (QoQ +7.0%, YoY -37.5%)
• Operating expenses reflect the consolidation of UNBOUND as a subsidiary this quarter
• Labor costs fell 4.1% QoQ to KRW 15.6bn as the one -off incentive paid in the prior quarter dropped out
Q2 Earnings

Note: Q2 2026 results are preliminary figures based on consolidated financial statements and are subject to change upon exter nal audit
05. Operating Profit & Net Profit
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Q2 2026 OP KRW 28.1bn (QoQ +30.7%, YoY -58.8%) / Net profit KRW 41.7bn (QoQ +10.4%, YoY -18.7%)
• Net non -operating income of KRW 26.2bn, in line with the prior quarter, on FX -related gains and investment income
Category 2Q25 3Q25 4Q25 1Q26 2Q26
Change
YoY QoQ
Operating profit 68,215 49,548 37,403 21,506 28,118 -58.8% 30.7%
Operating profit margin 60.7% 65.6% 58.1% 45.5% 50.5% -10.2%(p) 5.0%(p)
Non -op . P&L (5,629) 18,512 18,510 25,705 26,210 Turnaround 2.0%
Equity method P&L – – 14,841 (820) (568) N/A 30.7%
Net Profit before
corporate tax 62,586 68,059 70,755 46,390 53,759 -14.1% 15.9%
Corporate tax 11,280 13,431 12,105 8,594 12,024 6.6% 39.9%
Net profit 51,306 54,628 58,649 37,796 41,736 -18.7% 10.4%
Net profit margin 45.7% 72.4% 91.0% 79.9% 74.9% 29.2%(p) -5.0%(p)
(Unit: M KRW, %)
Q2 Earnings

06. Q&A
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Q.1 : How did perform in Q2 2026?
A.1 : once again proved the strength of its IP with the 3.5th anniversary update in April. Polish ed content — the event story ‘STAR ANIS’ built
around the beloved character Anis, a new character, a 3D visual concert, special animation, and full voice acting — drew an enth usiastic global response, and right after
the update hit No.1 grossing on both major app stores (Apple/Google) in Korea and Japan.
On the back of this, global revenue grew both YoY and QoQ this quarter, sustaining solid momentum in its fourth year of service. In July, we
also successfully wrapped up ‘Full Burst Live’, a two -day band concert reinterpreting 25 signature OST tracks in rock arrangemen ts. The concert confirmed the deep bond
with our users and the cohesion of the fandom, and such IP experiences inside and outside the game continue to reinforce ‘s foundation for
long -term success.
Q.2 : What is the outlook for going forward?
A.2 : Global user response has stayed strong from the 3.5th anniversary through the recent summer event. has repeatedly rebounded to top
grossing ranks in key markets such as Korea and Japan at every major update — the 1.5th and 2nd anniversaries among them. The 3. 5th anniversary results are thus not
a one -off: an update -driven revenue structure has become ‘s own robust live -service model. The 4th an niversary update planned for H2 is
being prepared with greater content volume and polish, and we expect solid revenue to continue on the fandom’s strong respons e t o our story and characters.
We also keep expanding IP touchpoints beyond the game — orchestra and band concerts, pop -up stores, and a broader merchandise li neup. These offline experiences
strengthen the bond with the fandom and feed back into in -game engagement. Building on our accumulated IP brand power, we will d o our utmost to repay the affection
our users show us.

06. Q&A
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Q.3 : What performance do you expect for in H2 2026?
A.3 : has maintained steady sales since launch, solidifying its position as a steady -seller IP in the PC/console market. This quarter, new user inflow
continued on the back of seasonal promotions and the sequel reveal, keeping sales stable and in line with our expectations.
With events such as the platform expansion to Nintendo Switch 2 scheduled for H2, we expect the current sales momentum to con tin ue.
Q.4 : What is the development status and launch timing of the next title?
A.4 : In June, at Summer Game Fest 2026 (SGF 2026), we unveiled the official title of our next installment, , together with a 3m 30s in -game
trailer. Immediately after the reveal, the trailer recorded 1.61 million cumulative views on IGN’s official channel (as of en d o f July 2026) — one of the highest among all
titles revealed at SGF 2026 — with favorable reviews across domestic and global communities and game media channels, once again proving the strength of the
franchise IP’s fandom.
Development of is progressing smoothly toward the quality level we are targeting. Under the princ ipl e of securing sufficient development
time to deliver the highest level of polish, we will disclose further information about the game in stages. We will do our be st to live up to our users’ heightened
expectations.

Q.5 : What differentiates , and what results do you expect?
A.5 : amplifies the combat praised in its predecessor while further strengthening the world and s tor y. Starting with this title, we move to a self –
publishing model under which SHIFT UP publishes directly, leading a marketing strategy that fully expresses the IP’s identity . Building on the proven fandom and steady -seller
status of the original and on our self -publishing capabilities, we aim to reach global users more closely and surpass the previo us title’s results .

06. Q&A
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Q.6 : What is the development status and reveal timing of ?
A.6 : , SHIFT UP’s next flagship title and a core pipeline project, is progressing smoothly under an efficie nt and well -structured development process,
and we are target ing to unveil it in H2 2026. We ask for the continued interest and support of global users for our new IP, .
Q.7 : With competition intensifying in subculture games, what is ‘ competitive edge?
A.7 : is a AAA -class title built on an ‘Eastern fantasy’ universe, targeting a global cross -platform live serv ice. We are focused on delivering a highly
polished game that brings together the development capabilities and live -service experience we have accumulated.
Q.9 : What is the outlook for the upward trend in labor and other operating expenses?
A.9 : We are gradually adding the personnel needed for new IP development and for internalizing PC/console publishing capabil ities. Together with the effect of consolidating
UNBOUND , consolidated operating expenses — labor costs in particular — are expected to rise in stages. As this is a preemptive investme nt in future growth, we will manage
the balance with profitability under a disciplined cost -execution policy.
Q.8 : There is news of hiring for a new project — what kind of game is it?
A.8 : Beyond advancing our existing IPs, we are developing additional new IPs — besides those already announced — that can lever age SHIFT UP’s strengths. We will
continue to invest in development and pipeline diversification; this recruitment is likewise aimed at building our next growt h l ineup, and details will be shared in due
course in consideration of the development stage.

Appendix: Summary Financial Statements (Consolidated)
12 Note: Q2 2026 results are preliminary figures based on consolidated financial statements and are subject to change upon exter nal audit
Balance Sheet Income Statement
Category 2Q25 3Q25 4Q25 1Q26 2Q26
Revenue 112,383 75,499 64,430 47,309 55,724
Operating exp. 44,167 25,952 27,026 25,803 27,606
Operating profit 68,215 49,548 37,403 21,506 28,118
Non -operating
revenue 8,165 17,094 23,958 36,196 34,810
Non -operating
expense 13,794 (1,417) 5,448 10,492 8,600
Equity method
income (loss) – – 14,841 (820) (568)
Net profit bef.
corporate tax 62,586 68,059 70,755 46,390 53,759
Corporate tax 11,280 13,431 12,105 8,594 12,024
Net profit 51,306 54,628 58,649 37,796 41,736
Category FY13 (Prior) FY14 (Current)
Assets 1,083,336 1,110,351
Current assets 781,867 753,980
Non -current assets 301,468 356,372
Liabilities 162,145 127,625
Current liabilities 95,497 58,371
Non -current liabilities 66,648 69,254
Stockholders’ equity 921,191 982,726
Capital stock 11,792 11,814
Capital surplus 532,236 533,834
Retained earnings 410,501 472,818
Other comprehensive
income 13,675 13,528
Capital adjustment (47,013) (49,269)
Total equity &
liabilities 1,083,336 1,110,351
(Unit: M KRW ) (Unit: M KRW )
Q2 Earnings