Nexon Q4 2025 Earnings Prepared Remarks

Key insights

6 takeaways

01
Nexon achieved record-high annual revenue of ¥475.1 billion in 2025, representing a 6% year-over-year increase driven by the IP Growth Initiative.See it on page 2
02
The launch of ARC Raiders was a primary growth driver, achieving 14 million unit sales and reaching 960,000 peak concurrent users in January 2026.See it on page 3
03
Q4 2025 revenue grew 55% year-over-year to ¥123.6 billion, despite a ¥9 billion revenue reduction from a MapleStory: Idle RPG refund program and a ¥27.7 billion revenue deferral for ARC Raiders.See it on page 5
04
Nexon maintained strong liquidity with over ¥100 billion in operating cash flow for the eighth consecutive year and a year-end cash balance exceeding ¥800 billion.See it on page 7
05
The company is increasing shareholder returns by raising its annual dividend from ¥45 per share in 2025 to a projected ¥60 per share for 2026.See it on page 7
06
Nexon projects continued growth for Q1 2026, forecasting revenue between ¥150.5 billion and ¥164.0 billion through content updates and new title momentum.See it on page 6

Summary

Nexon’s 2025 fiscal performance highlights the successful execution of its IP Growth Initiative, resulting in record-high annual revenue of ¥475.1 billion, a 6% year-over-year increase. The company’s strategy centers on revitalizing core franchises, such as MapleStory and PC-based Dungeon&Fighter, while simultaneously scaling new intellectual properties. A primary driver of this growth was the launch of ARC Raiders, which achieved 14 million unit sales and sustained high engagement levels, including 960,000 peak concurrent users in January 2026.

The fourth quarter of 2025 saw revenue reach ¥123.6 billion, a 55% increase compared to the same period in the previous year. However, financial results were impacted by specific operational adjustments. The company initiated a refund program for MapleStory: Idle RPG following the discovery of a coding error, which reduced Q4 revenue by approximately ¥9 billion. Additionally, the company deferred ¥27.7 billion in revenue related to ARC Raiders to better align with the game's service-based model. Despite these adjustments, the company maintained a strong financial position, generating over ¥100 billion in operating cash flow for the eighth consecutive year and ending 2025 with a cash balance exceeding ¥800 billion.

Looking toward 2026, the company anticipates continued growth, projecting Q1 revenue between ¥150.5 billion and ¥164.0 billion. The outlook remains focused on leveraging content updates for established titles and maintaining the momentum of new releases. To support shareholder value, the company doubled its annual dividend to ¥45 per share in 2025 and plans a further increase to ¥60 per share for 2026, alongside ongoing share buyback programs. These results reflect a broader corporate transformation aimed at establishing a more diversified and globally competitive portfolio.