NEXON Q1 2026 Earnings Prepared Remarks

Key insights

6 takeaways

01
Nexon reported 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 cumulative unit sales and a 42% year-over-year increase in the MapleStory franchise.See it on page 7
03
Nexon has initiated a multi-year transformation plan that includes cancelling three underperforming titles to reallocate resources toward projects like NAKWON and Woochi the Wayfarer.See it on page 4
04
Strategic partnerships were bolstered by a ten-year extension with Tencent for PC Dungeon&Fighter in China and a new agreement to publish Blizzard’s Overwatch on PC in Korea.See it on page 5
05
The company projects a soft Q2 2026 due to declines in the Dungeon&Fighter franchise and difficult year-over-year comparisons for MABINOGI MOBILE.See it on page 2
06
Nexon plans to regain momentum in the second half of 2026 through the Frozen Trail expansion for ARC Raiders, regional launches of MABINOGI MOBILE, and a new ¥30 billion share repurchase program.See it on page 3

Summary

Nexon’s first-quarter 2026 earnings report highlights a period of record-breaking financial performance tempered by a strategic shift in operational focus. The company achieved 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 primarily driven by the strong performance of the ARC Raiders franchise, which reached 16 million cumulative unit sales, and the continued expansion of the MapleStory franchise, which grew 42% year over year.

Despite these gains, the company anticipates a challenging second quarter, projecting it to be the softest of the year. This outlook stems from performance declines in the Dungeon&Fighter franchise and difficult year-over-year comparisons for MABINOGI MOBILE. To address these headwinds, Nexon has initiated a multi-year transformation plan focused on cost management, creative process evolution, and rigorous product portfolio reviews. As part of this initiative, the company has cancelled three underperforming titles to reallocate resources toward more viable projects like NAKWON and Woochi the Wayfarer.

Strategic partnerships remain a cornerstone of Nexon’s long-term growth. The company has secured a ten-year extension with Tencent for the Chinese service of PC Dungeon&Fighter and finalized a publishing agreement with Blizzard Entertainment to bring Overwatch to PC in Korea. Furthermore, Nexon is prioritizing long-term player retention for its FC franchise by throttling monetization during the upcoming World Cup period. Looking toward the second half of 2026, the company expects to regain momentum through a robust pipeline of content updates, including the Frozen Trail expansion for ARC Raiders and the regional launches of MABINOGI MOBILE in Taiwan and Japan, supported by a new ¥30 billion share repurchase program.