NEXON (3659) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of ¥152.2 billion and operating income of ¥58.2 billion, up 34% and 40% year-over-year, driven by ARC Raiders and MapleStory franchise.

• ARC Raiders surpassed 16 million units sold, maintaining high engagement and winning multiple awards.

• MapleStory franchise revenue grew 42% year-over-year, led by MapleStory: Idle RPG and MapleStory Worlds.

• Transformation initiatives included project cancellations, cost management, creative process evolution, and increased funding for select titles.

• Strategic partnerships and long-term publishing agreements secured for Overwatch, EA FC franchise, and Dungeon & Fighter in China.

Financial highlights

• Q1 2026 net income was ¥57.2 billion, up 118% year-over-year, aided by a ¥14.5 billion FX gain.

• Horizontal revenue (new titles) up 188% year-over-year to ¥59.3 billion, led by ARC Raiders.

• PC/Console revenue grew 52% year-over-year; mobile revenue declined 5%.

• Refunds for MapleStory: Idle RPG coding issue reduced Q1 revenue by ¥6.7 billion and operating income by ¥3.5 billion.

• North America and Europe revenue surged 310% year-over-year, Rest of World up 111%.

Outlook and guidance

• Q2 2026 expected to be the softest quarter, with revenue forecasted at ¥107–119.7 billion, a 10% decrease to 1% increase year-over-year.

• Q2 operating income forecasted at ¥16.1–25.3 billion, a 57–33% decrease as reported.

• Net income for Q2 projected at ¥16.1–23.2 billion, a 4% decrease to 38% increase as reported.

• For H1 2026, revenue forecasted at ¥259,190–271,905 million (up 11.3–16.8% YoY); operating profit expected at ¥74,222–83,507 million (down 6.4% to up 5.3% YoY).

• Cost increases anticipated due to higher HR and marketing expenses.