NHN (181710) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 2.5% to KRW 2,516.3 billion; operating and net profit returned to positive earnings.

• Q4 revenue increased 6.5% YoY and 9.6% QoQ; operating profit more than doubled YoY and QoQ.

• Portfolio streamlining and stronger profitability frame a 2026 strategy focused on growth in core businesses.

Financial highlights

• FY2025 operating profit was KRW 132.4 billion and net profit KRW 57.7 billion; operating margin was 5.3%.

• Q4 revenue was KRW 685.7 billion; operating profit was KRW 55.1 billion, up 120.5% YoY and 99.5% QoQ.

• Q4 net profit was KRW 28.7 billion, up 59.2% QoQ and returning to profit YoY; Q4 net margin was 4.2%.

• Q4 operating expenses rose 1.9% YoY and 5.5% QoQ, mainly on higher commissions and marketing; goodwill impairment was KRW 16.7 billion.

Outlook and guidance

• Streamlining benefits are expected to continue in 2026; Q1 seasonality may weigh on results, with management expecting stronger trends in Q2-Q4.

• Cloud GPU revenue is expected to grow substantially, supported by disaster-recovery work and the KRAFTON GPU project; the aim is operating profit clearly above breakeven in 2026.

• Dissidia Duellum Final Fantasy carries high expectations, with a target of at least 10% contribution on an operating-profit basis.

• Global IP-based mobile game launches, including Oshi no Ko: Match Star, are planned to support 2026 growth.