NEXON Q2 2025 Earnings Prepared Remarks

Key insights

7 takeaways

01
Nexon reported Q2 2025 revenue of ¥118.9 billion and operating income of ¥37.7 billion, exceeding the high end of previous guidance despite a 3% year-over-year revenue decline as reported.See it on page 2
02
Constant-currency revenue grew by 6% year-over-year, though net income was negatively impacted by a ¥17.5 billion foreign exchange loss on U.S. dollar-denominated cash holdings.See it on page 5
03
The MapleStory franchise grew 60% year-over-year, driven by a 91% surge in the Korean PC version and a sevenfold increase in the MapleStory Worlds platform.See it on page 3
04
Dungeon&Fighter PC revenue increased 67% year-over-year, with Korean operations nearly doubling their monthly and paying user counts.See it on page 5
05
Nexon projects a 6% to 14% year-over-year revenue decrease for Q3 2025 due to difficult comparisons with prior mobile launches and upcoming release schedules.See it on page 6
06
Strategic expansion plans include the global launch of ARC Raiders in October and the entry of THE FINALS into the Chinese market.See it on page 9
07
The company has completed ¥50 billion in share repurchases toward a ¥100 billion annual target and authorized an additional ¥25 billion buyback phase through October 2025.See it on page 8

Summary

Nexon’s second-quarter 2025 performance reflects a successful strategy of revitalizing established intellectual property and scaling new service-based titles. The company reported revenue of ¥118.9 billion and operating income of ¥37.7 billion, both exceeding the high end of previous guidance. While as-reported revenue and operating income declined year-over-year by 3% and 17% respectively, constant-currency figures showed a 6% revenue increase, highlighting the impact of foreign exchange volatility. Net income was notably affected by a ¥17.5 billion foreign exchange loss on U.S. dollar-denominated cash holdings.

Growth was primarily driven by the MapleStory and Dungeon&Fighter franchises. The MapleStory franchise achieved 60% year-over-year revenue growth, bolstered by a 91% surge in its Korean PC version and a sevenfold increase in the MapleStory Worlds platform following its expansion into Asian and European markets. Simultaneously, the Dungeon&Fighter PC title saw a 67% revenue increase, with Korean operations nearly doubling their monthly and paying user counts. These gains were complemented by the strong performance of MABINOGI MOBILE and the continued stability of FC ONLINE.

Looking toward the third quarter, the company anticipates continued double-digit growth for its flagship PC titles but projects a year-over-year revenue decrease of 6% to 14% due to difficult comparisons with previous mobile launches and upcoming release schedules. Strategic priorities include the global launch of ARC Raiders in October and the expansion of THE FINALS into the Chinese market. To support long-term value, the company remains committed to its capital allocation strategy, having completed ¥50 billion in share repurchases toward a ¥100 billion annual target, with an additional ¥25 billion buyback phase authorized through October 2025.