Nexon Q1 2026 Earnings Letter

Key insights

7 takeaways

01
Nexon achieved record Q1 2026 financial results with ¥152.2 billion in revenue and ¥58.2 billion in operating income, marking year-over-year growth of 34% and 40% respectively.See it on page 6
02
Growth was primarily fueled by the ARC Raiders franchise reaching 16 million unit sales and sustained performance from the MapleStory franchise.See it on page 2
03
The company is executing a strategic transformation plan that includes cancelling three underperforming projects to reallocate resources toward high-potential titles like NAKWON: LAST PARADISE.See it on page 13
04
Nexon is restructuring its collaborative framework with Tencent in China and prioritizing hyperlocalization to address performance challenges within the Dungeon&Fighter franchise.See it on page 4
05
The company anticipates a softer Q2 2026 due to difficult year-over-year comparisons and planned user acquisition spending for the FC franchise during the World Cup.See it on page 10
06
Nexon maintains a pipeline of over 15 games in development for the second half of 2026, including MABINOGI MOBILE and an Overwatch release for the Korean market.See it on page 11
07
Shareholder value initiatives include a committed annual dividend of ¥60 per share and a ¥30 billion share repurchase program.See it on page 13

Summary

Nexon’s Q1 2026 earnings report highlights a period of record-breaking financial performance alongside the implementation of a strategic transformation plan aimed at long-term margin improvement and portfolio optimization. The company achieved record quarterly revenue of ¥152.2 billion and operating income of ¥58.2 billion, representing year-over-year growth of 34% and 40%, respectively. This success was largely driven by the strong performance of the ARC Raiders franchise, which surpassed 16 million unit sales, and sustained growth within the MapleStory franchise.

The company is currently executing a multi-year transformation initiative that emphasizes rigorous cost management, creative process efficiency, and a disciplined review of its product pipeline. As part of this effort, Nexon has cancelled three underperforming projects to reallocate resources toward high-potential titles such as NAKWON: LAST PARADISE. Furthermore, the company is actively addressing performance challenges within the Dungeon&Fighter franchise by restructuring its collaborative framework with Tencent in China and prioritizing hyperlocalization to improve player engagement.

While Q1 results were strong, the company anticipates a softer second quarter due to difficult year-over-year comparisons and planned investments in user acquisition for the FC franchise during the World Cup. However, the outlook for the second half of 2026 remains positive, supported by a robust pipeline of over 15 games in development, including MABINOGI MOBILE, Overwatch for the Korean market, and various expansions for established IP. To bolster shareholder value, the company has committed to an annual dividend of ¥60 per share and a ¥30 billion share repurchase program. Nexon maintains a neutral to optimistic stance, focusing on leveraging its deep player communities and strategic partnerships to drive sustainable growth through 2027 and beyond.