NCSOFT (036570) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was KRW 404.2 billion, with mobile at KRW 178.1 billion and PC at KRW 168.2 billion, driven by AION 2's successful launch; revenue rose 12% sequentially but fell 1% year-over-year.

• Full year 2025 revenue reached KRW 1.5069 trillion, down 5% year-over-year; mobile contributed KRW 794.4 billion, PC KRW 430.9 billion.

• Operating income for Q4 was KRW 3.2 billion, with a net loss of KRW 1.5 billion due to a spike in corporate tax from deferred revenue recognition and absence of one-time gains.

• Annual operating income was KRW 36.9 billion excluding one-time severance; pre-tax income and net income were KRW 461.4 billion and KRW 347.4 billion, reflecting a one-time gain from property sale.

Financial highlights

• AION 2 gross billings in Q4 were KRW 94.1 billion; recognized revenue was KRW 77.4 billion due to revenue deferral.

• Legacy PC titles showed sequential growth, led by Guild Wars 2 expansion sales.

• Annual operating expenses decreased 12% year-over-year to KRW 1,490.8 billion; personnel and marketing expenses fell 14% and 18% respectively.

• Q4 pre-tax income was KRW 28.2 billion, with a net loss of KRW 1.5 billion, reflecting the absence of prior quarter's one-time gain and lower FX-related income.

Outlook and guidance

• 2026 revenue guidance targets the upper bound of KRW 2-2.5 trillion, driven by AION 2, new global IP launches, and mobile casual business expansion.

• Five spin-off titles and major global launches, including AION 2 and Lineage Classic, are planned.

• Mobile casual business expected to account for one-third of total revenue next year, with growth from both M&A and organic efforts.

• Operating margin improvement anticipated alongside revenue growth.

• Q4 results benefited from new game launches and regional expansions, with expectations for continued momentum in PC online games.