**Wemade Successfully Achieves Turnaround to Profit in Q1 Through IP Dispute Settlement**

EmuDe successfully turned a profit in the first quarter of 2026. Although game sales slightly declined, licensing revenue driven by the end of the intellectual property licensing dispute over China’s Shengqu’s “Legend 2” contributed to the performance.

On the 12th, EmuDe announced that, based on consolidated financial statements, the operating profit for the first quarter is tentatively 8.5 billion won. In the same period last year, there was an operating loss of 11.3 billion won, but this time it achieved a profit. The sales for the same period were 153.3 billion won, an increase of 8.1%, and net profit reached 19.9 billion won, successfully turning a loss into a profit. The simultaneous improvement in profitability and sales attracted market attention.

By business segment, the game division’s sales were 115.2 billion won, licensing sales were 30.5 billion won, and the blockchain division’s sales were 7.5 billion won. Among these, the core of the quarterly performance improvement was licensing sales. The main business, the game division, slowed down compared to the previous quarter, but with the conclusion of the long-term licensing dispute over China’s Shengqu “Legend 2,” related revenue was reflected. From the perspective of a game company, besides sales obtained through direct game operations, licensing income from providing popular proprietary IPs to external companies and charging fees can help reduce revenue volatility.

The blockchain division also continued its growth momentum. EmuDe launched the “Yumeru Legend” based on Wemix’s economic system for the global market in October last year. As this segment became more active, blockchain sales increased by 17% quarter-over-quarter. Compared to the same period last year, it surged by 867%. However, its absolute sales scale remains relatively small compared to the game division, so whether the blockchain business can surpass the temporary rebound and become a stable source of income will be key in the future.

EmuDe also outlined future growth drivers. The company stated that it is preparing more than 20 new titles across various genres, including MMORPGs, casual games, and anime-style games, through its headquarters and subsidiaries. Especially in the second half of this year, it plans to launch new titles utilizing the “Yoru Kage” IP, followed by the release of its first global console blockbuster, “Project Tar.” After all, if this turnaround is not to be a one-time gain, the company must continue to achieve success with new games and expand its blockchain business beyond the licensing benefits from the dispute resolution. Therefore, future performance will likely depend on the results of new titles and the actual effectiveness of business diversification.