Nexon Q3 2025 Earnings Letter

Key insights

7 takeaways

01
Nexon reported Q3 2025 revenue of ¥118.7 billion and operating income of ¥37.5 billion, representing a year-over-year decline of 12% and 27% respectively due to a high-base effect from 2024 launches.See it on page 4
02
Net income increased by 41% to ¥38.2 billion, primarily driven by favorable foreign exchange gains.See it on page 4
03
The MapleStory franchise is on track for its highest annual revenue in 22 years, recording a 40% year-over-year revenue increase.See it on page 2
04
The new PvPvE shooter ARC Raiders reached 4 million copies sold and achieved a peak of 700,000 concurrent players.See it on page 3
05
Nexon projects record-high Q4 2025 revenue between ¥115.8 billion and ¥129.3 billion, supported by the launch of MapleStory: Idle RPG and the Chinese market entry of THE FINALS.See it on page 4
06
The board doubled the year-end dividend to ¥30 per share and completed a ¥100 billion share buyback program, signaling confidence in cash flow and capital efficiency.See it on page 8
07
THE FINALS demonstrated strong performance with a 58% year-over-year revenue increase, contributing to the company's broader IP Growth Initiative.See it on page 9

Summary

Nexon’s Q3 2025 earnings report highlights the successful execution of its IP Growth Initiative, a strategic framework designed to drive long-term, sustainable expansion through both vertical growth in established franchises and horizontal development of new revenue streams. The company reported Q3 revenue of ¥118.7 billion and operating income of ¥37.5 billion, both aligning with internal guidance. While year-over-year revenue and operating income declined by 12% and 27% respectively—largely due to the high-base effect of major 2024 launches—net income rose 41% to ¥38.2 billion, bolstered by favorable foreign exchange gains.

Key performance drivers include the MapleStory franchise, which is tracking toward its highest annual revenue in 22 years with a 40% year-over-year increase. The franchise’s success is attributed to hyperlocalized content and the expansion of the MapleStory Worlds UGC platform. Additionally, the launch of the PvPvE shooter ARC Raiders marked a significant milestone, achieving 4 million copies sold and reaching 700,000 concurrent players. Other core titles, such as Dungeon&Fighter (PC) and THE FINALS, also demonstrated strong growth, with the latter seeing a 58% year-over-year revenue increase.

Looking toward Q4 2025, the company projects record-high quarterly revenue between ¥115.8 billion and ¥129.3 billion. This growth is expected to be fueled by continued momentum in the MapleStory and FC franchises, alongside contributions from new titles including MapleStory: Idle RPG and the Chinese market entry for THE FINALS. Reflecting confidence in its cash flow and strategic direction, the board doubled the year-end dividend to ¥30 per share and confirmed the completion of a ¥100 billion share buyback program. The company remains committed to balancing capital efficiency with aggressive investment in global market expansion and new game development through 2026.