NCSOFT (036570) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales were ₩360 billion, down 6% sequentially and 10% year-over-year, mainly due to a decline in live service game sales and business activity adjustments.

• Operating loss was ₩7.5 billion, impacted by weaker sales and one-time severance or labor costs; excluding this, operating profit would have been positive.

• Net income reached ₩347.4 billion, boosted by a ₩355.9 billion gain from the sale of NC Tower Samsung Dong and increased FX gains.

Financial highlights

• Q3 sales: ₩360 billion (down 6% QOQ, down 10% YOY).

• Operating loss: ₩7.5 billion, positive excluding one-time severance or labor costs.

• Net income: ₩347.4 billion, including a large one-time real estate gain and FX-related profit/loss.

• Royalty sales: ₩46.8 billion, up 11% QOQ and 23% YOY, mainly from Lineage M Taiwan and PC B&S China.

• Operating costs: ₩367.5 billion, flat QOQ, down 12% YOY.

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.

• Existing titles to expand globally: LNGW relaunch in Southeast Asia and expansion to North America and Russia in 2026; LNG2M and LNGM preparing for China launches.

• Four legacy IP spin-offs on track for 2026, with one launching in December 2025.

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