Nexon Q2 2026 Earnings Prepared Remarks

Key insights

6 takeaways

01
Nexon reported Q2 2026 revenue of ¥121.1 billion and operating income of ¥31.3 billion, exceeding internal outlooks.See it on page 5
02
The Board proposed a special dividend of ¥415 per share, totaling approximately ¥324 billion, following a divestiture that generated ¥142 billion in gains.See it on page 9
03
MapleStory franchise revenue grew 63% year-over-year, while ARC Raiders surpassed 16.3 million units sold globally since its October 2025 launch.See it on page 6
04
Nexon is shifting to a 'fewer, bigger, better' development model that mandates specific profit targets for all projects and freezes year-over-year human resource costs.See it on page 11
05
The company maintains total cash reserves of ¥842 billion and has set a long-term goal to increase return on equity from its current 10% minimum to 15%.See it on page 9
06
Upcoming H2 2026 growth initiatives include the 'Frozen Trail' update for ARC Raiders and multi-platform expansions for the Dungeon&Fighter and Mabinogi franchises.See it on page 4

Summary

Nexon’s second quarter 2026 performance demonstrates the successful execution of a strategic transformation initiative focused on cost discipline, portfolio optimization, and the expansion of established intellectual property. The company reported revenue of ¥121.1 billion, a 2% year-over-year increase, and operating income of ¥31.3 billion. These results exceeded internal outlooks, driven largely by the record-setting performance of the MapleStory franchise, which grew 63% year-over-year, and the continued commercial success of ARC Raiders, which has surpassed 16.3 million units sold globally since its launch in October 2025.

The company’s financial position remains robust, with total cash reserves reaching ¥842 billion following a divestiture that yielded ¥142 billion in gains. Consequently, the Board has proposed a special dividend of ¥415 per share, totaling approximately ¥324 billion, to be distributed to shareholders of record by the end of September. This capital allocation strategy aligns with a broader commitment to improve capital efficiency and maintain a minimum return on equity of 10%, with long-term goals of reaching 15%.

Operational strategy is currently centered on a "fewer, bigger, better" development model. By assigning specific profit targets to all projects and maintaining flat year-over-year human resource costs, the company aims to improve margins despite a challenging global industry environment characterized by contracting Western markets and rising production costs. Looking toward the second half of 2026, Nexon plans to leverage a steady pipeline of content, including the major "Frozen Trail" update for ARC Raiders and the expansion of the Dungeon&Fighter and Mabinogi franchises across mobile and PC platforms. The company maintains a neutral to positive outlook for the third quarter, anticipating continued growth from its core franchises while navigating the variable costs associated with new product launches and global service expansion.