Krafton has posted its best second quarter ever, with "Subnautica 2" playing a central role in the record-breaking results despite months of legal turmoil between the publisher and the game's own development studio.
The South Korean publisher reported the numbers just weeks after settling a bitter dispute with Unknown Worlds' former leadership.
'Subnautica 2' Helps Krafton Achieve Record Q2 Performance
Krafton reported second quarter revenue of 1.29 trillion KRW, roughly $889.1 million, marking a 94.9% increase year over year and the company's best second quarter on record. Operating profit climbed 67% to 410.9 billion KRW, also a new high for the period. Krafton credited the results directly to "Subnautica 2's" early access performance alongside continued growth from the "PUBG" franchise.
"Subnautica 2" entered early access on May 14 and sold more than five million copies within its first 22 days, helping push PC revenue past 500 billion KRW for the first time in company history.
Combined first-half revenue from the entire "Subnautica" franchise, including the original game and "Subnautica: Below Zero," reached 232.5 billion KRW.
Despite the strong operating numbers, Krafton posted a net loss of 29.9 billion KRW for the quarter, which the company attributed to a 316.7 billion KRW non-operating expense tied directly to its dispute with Unknown Worlds.
Krafton and Unknown Worlds' Messy Breakup
The financial windfall arrived only weeks after Krafton settled a contentious legal battle with Unknown Worlds' founders, Ted Gill, Charlie Cleveland, and Max McGuire, as per PCGamer. Krafton had acquired Unknown Worlds in 2021 for $500 million, with a contractual provision allowing up to $250 million in additional earnout payments if "Subnautica 2" hit specific performance targets.
According to a previous ruling, when it became clear the game was on track to trigger those earnout targets, Krafton fired the studio's founders in July 2025, citing concerns the game wasn't ready for release.
The court later found those justifications to be pretextual, ruling that Krafton had effectively delayed the launch in an attempt to avoid the payout.
A judge ordered Krafton to reinstate Ted Gill as CEO and extend the earnout period, and the two sides ultimately reached a mutual settlement on July 1, agreeing to dismiss all pending legal proceedings.
Is 'Subnautica 2' Any Good?
Despite the drama surrounding its development, "Subnautica 2" has been well received both critically and commercially. The game is currently in early access, but there are already several reviews on Metacritic that highly praise its atmospheric underwater world, new DNA-based gene modification system, and full four-player co-op support as a strong evolution of the original "Subnautica" formula.
IGN gave the game a 7 out of 10 rating, giving high regard to the early access, which it said was a faithful sequel to the original underwater survival game.
On Steam, the game maintains a "Very Positive" user rating, with many players highlighting the sense of immersion and exploration that made the first game a standout in the survival genre. Some reviewers have noted the usual early access limitations, including a limited story and a smaller number of craftable items compared to what's expected at full release, though most agree the foundation shows real promise.
With Krafton now looking to turn "Subnautica" into what it has called a lasting franchise IP, the studio's next challenge will be delivering on that early access promise as development continues toward a full 1.0 launch.
