NC (036570) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales were KRW 360.0 billion, down 6% sequentially and 10% year-over-year, with an operating loss of KRW 7.5 billion due to lower sales and one-time labor costs; net income surged to KRW 347.4 billion, driven by a one-time property sale and FX gains.

• Revenue for the first nine months of 2025 was KRW 1,102.7 billion, with 37% from overseas markets including Asia, North America, and Europe.

• Operating income for the nine months was KRW 12.8 billion, and net income attributable to owners was KRW 348.9 billion.

• The company completed the sale of NC Tower I for KRW 443.5 billion and is investing KRW 580 billion in a new global RDI center.

• Major mobile and online games, including Lineage M, Lineage 2M, and Lineage W, remain key revenue drivers.

Financial highlights

• Q3 sales: KRW 360.0 billion (down 6% QoQ, down 10% YoY); operating loss: KRW 7.5 billion, positive excluding one-time severance; net income: KRW 347.4 billion, including a large one-time real estate gain.

• Pre-tax income surged to KRW 435.1 billion in Q3, reflecting significant one-time gains.

• Total assets as of September 30, 2025: KRW 4,358.8 billion; total equity: KRW 3,422.3 billion.

• Cash and cash equivalents at period end: KRW 416.5 billion.

• R&D expenses for the first nine months: KRW 263.5 billion, representing 24% of sales.

Outlook and guidance

• Ion 2 launches in eight days, expected to expand the MMO player base; global launch planned for H2 2026.

• Three new IPs (Limit Zero Breakers, Time Takers, Cinder City) to launch globally in 2026; next-gen MMORPG to be unveiled at G-STAR.

• Continued focus on global expansion, platform diversification, and strengthening of core IPs.

• Ongoing investment in R&D and infrastructure to support long-term growth.

• Proprietary payment system for mobile games to reduce variable costs, rolling out across major titles by November.