NHN (181710) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated revenue reached KRW 671.4 billion, up 11.9% year-over-year but down 2.1% sequentially, with operating income at KRW 26.3 billion and net income at KRW 31.1 billion, a turnaround from a loss in Q1 last year.

• Operating profit fell 52.5% quarter-over-quarter, mainly due to upfront infrastructure investments in NHN Cloud, with operating margin at 3.9%.

• Net profit margin improved to 4.6%, up 4.7 percentage points year-over-year.

• Payment and advertising accounted for 54.3% of sales, games 20.5%, and other segments 25.2%.

• Domestic sales comprised 84% of total revenue, with Japan and other regions contributing 13.8% and 2.3%, respectively.

Financial highlights

• Payment revenue reached KRW 354.6 billion, up 22.1% year-over-year and 2.6% quarter-over-quarter, leading segment growth.

• Game revenue was KRW 127.8 billion, up 6.8% year-over-year and 1.3% quarter-over-quarter.

• Tech revenue was KRW 125.7 billion, up 19% year-over-year but down 9.6% quarter-over-quarter.

• Operating expenses increased 12.7% year-over-year and 2.3% quarter-over-quarter to KRW 645.1 billion.

• Cash and cash equivalents at quarter-end were KRW 801.3 billion, down from KRW 1,563.7 billion at the end of 2025.

Outlook and guidance

• Cloud revenue from the Yangpyeong region is guided at KRW 300 billion over five years, with strong GPU demand.

• NHN Cloud expects about 30% year-over-year growth in CSP revenue.

• Payment transaction volume growth is expected to accelerate with new partnerships, including Mercedes Pay.

• The company maintains a shareholder return policy targeting at least 15% of prior year consolidated EBITDA for dividends and share buybacks from 2026 to 2028.

• Advertising spend is budgeted to increase by about 10% year-over-year, reflecting new game launches.