NEXON (3659) Q4 2025 earnings summary

Executive summary

• Achieved record full-year revenue of JPY 475.5 billion (¥475,102 million), up 6–6.5% year-over-year, driven by growth in core franchises and successful new titles like ARC Raiders, MapleStory Idle RPG, and MABINOGI MOBILE.

• ARC Raiders became the most successful new product launch, surpassing 14 million unit sales and maintaining high engagement metrics, validating global blockbuster potential.

• MapleStory Idle RPG faced a coding error, leading to a refund offer and process reforms to maintain player trust, but also expanded the franchise and reached #1 in multiple Asian markets.

• Company continues to diversify and strengthen its global presence, with significant progress in Western markets and a globally competitive portfolio.

• Key franchises like Dungeon & Fighter and MapleStory showed mixed results, with MapleStory revenue increasing and Dungeon & Fighter franchise revenue declining due to mobile segment weakness.

Financial highlights

• Fourth quarter revenue rose 55% year-over-year to JPY 123.6 billion; operating income turned positive at JPY 7.2 billion, though below outlook due to higher costs and bonuses.

• Full-year operating income was flat at JPY 124.0 billion; net income decreased 32% to JPY 92.1 billion due to lower foreign exchange gains and a one-time impairment loss.

• Deferred JPY 27.7 billion of ARC Raiders revenue to 2026 and beyond, with more than half to be recognized in Q1 2026.

• Cash and cash equivalents at year-end were ¥498.9 billion, up ¥166.9 billion from prior year; operating cash flow for 2025 was ¥171.9 billion.

• Bonuses and platform fees increased due to strong performance and new title launches.

Outlook and guidance

• Q1 2026 revenue expected to increase 32%–44% year-over-year (JPY 115–164 billion), with operating profit up 23%–47%.

• MapleStory franchise revenue projected to grow ~30% year-over-year in Q1 2026, driven by Idle RPG.

• ARC Raiders expected to maintain high engagement and sales momentum with monthly content updates.

• Growth expected from MapleStory and Dungeon & Fighter (PC), with ongoing contributions from new titles.

• Regional outlook: Korea and Rest of World to see revenue growth; China to decline due to Dungeon & Fighter Mobile.