FinancialNCSoft

NCSOFT Q4 2025 Earnings Release

10 Feb 202612 pages~7 min full read

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Key insights

7 takeaways · ~3 min read

01
NCSOFT returned to operating profitability in Q4 2025 with an operating income of KRW 3.2 billion, following losses in the previous period.See it on page 4
02
Full-year 2025 net income surged 269% to KRW 347.4 billion, primarily due to a one-time gain from a real estate sale.See it on page 5
03
Quarterly revenue reached KRW 404.2 billion, a 12% increase quarter-over-quarter, driven by a 92% spike in PC online game revenue to KRW 168.2 billion following the launch of Aion 2.See it on page 6
04
Full-year 2025 operating expenses decreased by 12% to KRW 1,490.8 billion, supported by a 14% reduction in labor costs and an 18% decline in annual marketing spend.See it on page 9
05
Regional growth was broad-based in Q4, with revenue increasing 9% in Korea, 25% in Asia, and 42% in the NA/EU markets.See it on page 8
06
Mobile games remained the largest revenue contributor at KRW 178.1 billion, representing 44% of total Q4 revenue.See it on page 6
07
Marketing expenditures saw a sharp 231% increase in Q4 compared to the previous quarter, reflecting costs associated with new title releases and industry events.See it on page 9

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Summary

NCSOFT’s financial results for the fourth quarter of 2025 demonstrate a return to operating profitability, with quarterly revenue reaching KRW 404.2 billion. This represents a 12% increase compared to the previous quarter, though it reflects a 1% decline year-over-year. The company achieved an operating income of KRW 3.2 billion for the quarter, marking a turnaround from the losses reported in the prior period. For the full fiscal year 2025, revenue totaled KRW 1,506.9 billion, while operating income reached KRW 16.1 billion. Net income for the year saw a significant surge of 269% to KRW 347.4 billion, primarily driven by a one-time gain from a real estate sale.

The revenue performance in the final quarter was characterized by a shift in product contribution. Mobile games generated KRW 178.1 billion, accounting for 44% of total revenue, while PC online games saw a substantial 92% quarter-over-quarter increase to KRW 168.2 billion, bolstered by the launch of Aion 2 and strong performance from the Guild Wars 2 expansion. Regionally, the company experienced growth across all major markets, with Korea, Asia, and the NA/EU regions reporting revenue increases of 9%, 25%, and 42% respectively on a quarterly basis.

Operating expenses for the full year 2025 were reduced by 12% to KRW 1,490.8 billion, largely due to a 14% decrease in labor costs following lower one-time severance payments. Marketing expenditures for the year also declined by 18% to KRW 105.6 billion, despite a sharp 231% increase in the fourth quarter attributed to new title releases and industry event participation. These results, prepared under K-IFRS standards, reflect the company’s ongoing efforts to manage costs while navigating a transition in its product portfolio across its global subsidiaries.