NEXON (3659) CMD 2026 summary

Strategic vision, leadership, and transformation

• Leadership has established a new Executive Chairman role to drive strategy, cost discipline, and creative direction, separating vision from daily operations and restoring investor trust.

• The company is shifting to fewer, high-conviction projects, applying strict ROI-based reviews and cost management across all functions, with weekly executive reviews and some projects to be restructured or cancelled.

• Previous 2027 revenue and operating income targets are being reset due to missed assumptions and underperformance; new guidance will be provided when certainty improves.

• AI and proprietary data (Mono Lake initiative) are being leveraged to enhance development efficiency and creative output, with context-driven insights from decades of player data.

• No layoffs are planned; workforce value is emphasized, with efficiency gains expected from smarter processes and technology rather than headcount reduction.

Financial performance, guidance, and shareholder returns

• Record 2025 revenue of JPY 475.1 billion and operating income of JPY 124 billion, with over JPY 800 billion in cash and eight consecutive years of JPY 100 billion+ operating cash flow.

• 2026 is positioned as the first year of transformation, with expectations for both revenue and operating income growth, and margin improvement driven by cost discipline and deferred ARC Raiders revenue.

• Shareholder returns have exceeded policy, with 95% of 2025 operating income returned via dividends and buybacks, including a doubled dividend and JPY 97 billion in buybacks; 2026 dividend set at JPY 60 per share.

• ROE target remains at 10%+, aiming for 15% medium-to-long term, supported by disciplined investment and capital efficiency; JPY 380 billion returned since 2019.

• Shareholder return policy is under review for further capital returns.

Franchise and product development

• MapleStory achieved 43% YoY growth in 2025, with further double-digit growth expected in 2026, driven by PC recovery, regional expansion, and new experiences like Idle RPG; 40% of revenue now comes from outside Korea.

• The MapleStory blueprint is being applied to other franchises, focusing on core expansion, nostalgia, casual experiences, and hyper-localization to attract diverse player cohorts.

• Dungeon & Fighter faces a rebuilding year for mobile in 2026, with new titles (Idle RPG, Classic, ARAD, OVERKILL) and global market entry expected to drive growth from late 2026 onward.

• FC franchise to leverage World Cup momentum in 2026, focusing on community engagement and cross-platform synergies.

• Emerging franchises and new games, including ARC Raiders, Mabinogi Mobile, Vindictus: Defying Fate, and NAKWON: Last Paradise, are expected to deliver strong double-digit revenue growth in 2026.