Nexon Q4 2025 Earnings Letter

Key insights

7 takeaways

01
Nexon achieved record-high annual revenue of ¥475.1 billion in 2025, representing a 6% year-over-year increase.See it on page 6
02
The launch of ARC Raiders drove significant engagement with 14 million units sold in 15 weeks, peaking at 960,000 concurrent users in January 2026.See it on page 3
03
Nexon maintains a strong financial position with over ¥100 billion in operating cash flow for the eighth consecutive year and a cash balance exceeding ¥800 billion.See it on page 10
04
A coding error in MapleStory: Idle RPG resulted in a ¥9 billion revenue loss in 2025, with an additional ¥5 billion impact expected in Q1 2026 due to refunds and compensation.See it on page 4
05
The company is doubling its annual dividend to ¥45 per share and executing significant share buybacks as part of a proactive shareholder return policy.See it on page 10
06
Nexon deferred ¥27.7 billion in revenue from ARC Raiders into 2026 to better align with its service-based business model.See it on page 3
07
Projected Q1 2026 revenue is estimated between ¥150.5 billion and ¥164.0 billion, supported by core franchise updates and a diversified IP portfolio.See it on page 8

Summary

Nexon’s 2025 fiscal performance underscores the successful execution of its IP Growth Initiative, which focuses on scaling established franchises while diversifying its portfolio through new, globally competitive titles. The company achieved record-high annual revenue of ¥475.1 billion, a 6% year-over-year increase, supported by strong momentum in flagship properties like MapleStory and the successful launch of new intellectual property. This growth strategy has transitioned the company into a more durable, multi-platform entity capable of sustaining blockbuster titles across diverse international markets.

A primary driver of this success was the launch of ARC Raiders, which sold 14 million units within 15 weeks. The title demonstrated significant long-term engagement, maintaining approximately six million weekly active users and peaking at 960,000 concurrent users in January 2026. While the company deferred ¥27.7 billion in revenue from this title into 2026 to better align with its service-based business model, the game serves as a cornerstone for the company’s global expansion strategy. Conversely, the launch of MapleStory: Idle RPG faced operational challenges due to a coding error regarding paid items. Management responded by offering full refunds and compensation, a move that negatively impacted 2025 results by ¥9 billion in revenue and is expected to affect 2026 first-quarter figures by an additional ¥5 billion.

Financially, the company remains robust, generating over ¥100 billion in operating cash flow for the eighth consecutive year and maintaining a cash balance exceeding ¥800 billion. This liquidity supports a proactive shareholder return policy, which includes doubling the annual dividend to ¥45 per share in 2025 and executing significant share buybacks. Looking toward 2026, the company anticipates continued growth, projecting first-quarter revenue between ¥150.5 billion and ¥164.0 billion, driven by ongoing content updates for its core franchises and the sustained performance of its new, diversified IP portfolio.