NC (036570) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached KRW 557.4 billion, up 55% YoY and 38% QoQ, driven by Aion 2, Lineage Classic, and mobile casual business growth.

• Operating income was KRW 113.3 billion with a 20% margin, and net income attributable to owners of parent was KRW 148.8 billion.

• Cash and cash equivalents increased to KRW 1.06 trillion, and total assets reached KRW 4.58 trillion at quarter-end.

• Major acquisitions in mobile casual gaming included INDYGO GROUP, Springcomes, and the post-quarter acquisition of JustPlay GmbH.

Financial highlights

• Q1 2026 revenue: KRW 557.4 billion; operating income: KRW 113.3 billion; net income: KRW 148.8 billion; basic EPS: KRW 7,672.

• Cash flows from operating activities: KRW 196.9 billion; investing activities: KRW 359.6 billion inflow; financing activities: KRW -17.5 billion.

• Dividend payout for the period: KRW 22.3 billion, with a cash dividend per share of KRW 1,150.

• Debt-to-equity ratio at 29.4%; liquid financial assets cover current liabilities by over 3x.

• JustPlay Q1 revenue grew 70% YoY to KRW 98.3 billion, with operating profit up 138% YoY to KRW 13.6 billion.

Outlook and guidance

• Confident in achieving annual revenue guidance of KRW 2.5 trillion for FY2026, with internal targets set higher.

• Long-term revenue guidance of KRW 5 trillion by 2030, supported by a pipeline of 20 titles.

• Continued expansion of global and mobile casual gaming, with new titles and IP launches planned for 2026.

• Ongoing investments in R&D and infrastructure, including a new global RDI center.

• Dividend policy targets payout of 30% of adjusted net income through 2027.