NC (036570) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue surged to KRW 770.5 billion, up 101% year-over-year and 38% sequentially, led by Mobile Casual and strong Lineage Classic performance.

• Operating income reached KRW 173.9 billion, up 1,053% year-over-year and 53% quarter-over-quarter, with an operating margin of 23%.

• Net income for the quarter was KRW 131.2 billion, down 14% sequentially.

• Operates as a leading digital entertainment and game development company with a global presence, focusing on PC, mobile, and casual games, and expanding through acquisitions and R&D investments.

• Maintains a robust portfolio of proprietary IPs and continues to diversify through new titles and global launches.

Financial highlights

• Revenue: KRW 770.5 billion in Q2 2026 (+101% YoY, +38% QoQ); H1 2026 consolidated revenue: KRW 1,327.9 billion.

• Operating income: KRW 173.9 billion in Q2 2026 (+1,053% YoY, +53% QoQ); H1 2026: KRW 287.1 billion.

• Net income: KRW 131.2 billion in Q2 2026 (down 14% QoQ); H1 2026: KRW 283.6 billion.

• Operating expenses: KRW 596.6 billion in Q2 2026 (+34% QoQ), with labor costs at KRW 260.0 billion (+7% QoQ).

• Cash and cash equivalents at period end: KRW 671.1 billion; total assets: KRW 4,664.7 billion; equity: KRW 3,582.0 billion.

Outlook and guidance

• Mobile Casual established as a key growth pillar, with ongoing investments in platform and studio expansion.

• Focus on expanding global reach, launching new IPs, and strengthening the mobile casual segment.

• Continued investment in R&D and infrastructure, including a new RDI center.

• Maintains a 3-year shareholder return policy targeting a 30% payout of adjusted net income.

• Continued focus on global revenue diversification and capital efficiency through data-driven platforms.