Nexon Q2 2025 Earnings Letter

Key insights

6 takeaways

01
Nexon reported Q2 2025 revenue of ¥118.9 billion and operating income of ¥37.7 billion, exceeding the high end of its previous guidance by 8% and 21%, respectively.See it on page 3
02
Core PC titles showed strong momentum, with MapleStory revenue growing 60% and Dungeon&Fighter (PC) revenue increasing 67% year-over-year.See it on page 4
03
The company is positioning the Mabinogi IP as its fourth major revenue pillar, supported by the launch of MABINOGI MOBILE and the positive reception of Vindictus: Defying Fate.See it on page 6
04
Nexon is executing a global expansion strategy that includes the October 30 global launch of ARC Raiders and a partnership with Tencent to develop a Chinese adaptation of THE FINALS.See it on page 2
05
The company completed a ¥50 billion share buyback program and has committed to additional repurchases through early 2026 to prioritize shareholder value.See it on page 7
06
Nexon is diversifying its business model by integrating blockchain technology into the MapleStory franchise via the upcoming MapleStory N.See it on page 6

Summary

Nexon’s second quarter of 2025 demonstrates a successful execution of its strategy to revitalize core franchises while expanding its portfolio through new titles and regional growth. The company reported revenue of ¥118.9 billion and operating income of ¥37.7 billion, exceeding the high end of its previous guidance by 8% and 21%, respectively. While year-over-year revenue and operating income saw slight declines due to the high-performance benchmarks set by the 2024 launch of Dungeon&Fighter Mobile, the company’s core PC titles, including MapleStory and Dungeon&Fighter (PC), achieved significant growth, with the former rising 60% and the latter 67% year-over-year.

The company’s growth strategy centers on leveraging live operations to transform established intellectual property into multi-platform ecosystems. MapleStory serves as a primary example, with the franchise expanding through MapleStory Worlds and the upcoming MapleStory: Idle RPG. Furthermore, the successful launch of MABINOGI MOBILE and positive reception for Vindictus: Defying Fate suggest that the Mabinogi IP is positioned to become a fourth pillar of sustainable revenue alongside Dungeon&Fighter, FC ONLINE, and MapleStory.

Looking toward the second half of 2025, the company is focused on global expansion and new releases. Key upcoming milestones include the October 30 global launch of ARC Raiders and the ongoing development of a Chinese adaptation of THE FINALS in partnership with Tencent. Additionally, the company is exploring innovative economic models through the blockchain-based MapleStory N and continues to prioritize shareholder value, having completed a ¥50 billion share buyback with plans for further repurchases through early 2026. Despite a cautious Q3 outlook due to year-over-year comparisons, the company maintains a positive long-term trajectory toward its 2027 growth targets.