South Korean esports organisation DRX reported a sharp drop in profits for 2025, even as its overall revenue continued to grow, according to its latest audit report.
The company’s revenue rose to about ₩12.85 billion ($8.87 million) in 2025, up from ₩11.37 billion ($7.85 million) in 2024, driven mainly by stronger income from team operations and its esports academy business. However, this growth did not translate into higher earnings.
DRX’s net profit fell to just ₩9.9 million ($6,831), compared to ₩103.2 million ($71,208) the previous year, marking a decline of more than 90%. Operating profit also dropped significantly to ₩360.9 million ($249,021), less than half of what it earned in 2024.
The main reason for the decline was a sharp increase in expenses. The company spent much more on running its business, with total operating costs rising by over ₩2 billion ($1.38 million). In particular, service-related costs and travel expenses increased significantly, suggesting that DRX invested heavily in expanding its operations and activities during the year.
At the same time, DRX earned much less from non-core activities. In 2024, the company had benefited from strong investment gains, including income from affiliated companies. These gains dropped sharply in 2025, removing an important source of profit.
The previous year also included several one-time gains, such as asset sales and other income items, which did not repeat in 2025. Without these extra boosts, the company’s earnings appeared much weaker.
Other factors also weighed on profits. The company reported higher foreign exchange losses and additional costs outside its core business. Meanwhile, cash flow from operations turned negative, mainly because a large portion of revenue had not yet been collected in cash.
DRX also took on ₩2 billion ($1.38 million) in short-term loans during the year, indicating increased financial pressure as it continues to invest in growth.
2025 wasn’t exactly DRX’s best year, but they’ve kicked off the 2026 financial year on a strong note. They’ve rebranded to Kiwoom DRX after teaming up with Kiwoom Securities and also landed a deal with ASUS ROG to supply gaming gear for their VALORANT and League of Legends teams.
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