Nexon FY2025 Q4 Online Earnings Presentation: Q&A Summary

Key insights

7 takeaways

01
Nexon projects 30% to 40% year-over-year growth in revenue and operating income for early 2026.See it on page 6
02
The new title ARC Raiders sold over ten million units in less than two months and maintains six million weekly active users.See it on page 2
03
A refund program for MapleStory: Idle RPG reduced Q4 revenue by ¥9 billion and operating income by ¥4 billion, with further impacts expected in Q1.See it on page 1
04
Of the ¥27.7 billion in revenue deferred from Q4, primarily due to Steam sales of ARC Raiders, more than half is expected to be recognized in Q1 2026.See it on page 3
05
Nexon is increasing development resources and collaborating with Tencent to stabilize Dungeon&Fighter Mobile while leveraging the upcoming World Cup to boost the FC franchise.See it on page 4
06
The company is strengthening internal governance and oversight of external studios to prevent future probability-related operational incidents.See it on page 5
07
Nexon maintains a shareholder return policy of distributing at least 33% of the previous year’s operating income while balancing investments in new titles.See it on page 2

Summary

Nexon’s FY2025 Q4 earnings discussion centers on the company’s strategy to balance growth across its established intellectual property portfolio while addressing operational challenges and revenue deferral accounting. The primary thesis emphasizes maintaining player trust through transparent crisis management and leveraging a robust pipeline of content updates to sustain long-term engagement. Management projects significant growth for early 2026, with revenue and operating income expected to rise by 30% to 40% year-over-year.

Key financial developments include the impact of a refund program for MapleStory: Idle RPG, which reduced Q4 revenue by ¥9 billion and operating income by ¥4 billion, with additional impacts projected for Q1. Conversely, the new title ARC Raiders has emerged as a major growth pillar, selling over ten million units in less than two months and maintaining six million weekly active users. Due to the nature of its sales, a portion of ARC Raiders revenue—specifically from Steam—is being deferred into 2026, with more than half of the ¥27.7 billion deferred from Q4 expected to be recognized in Q1.

Operational priorities for 2026 include stabilizing Dungeon&Fighter Mobile through increased development resources and co-development with Tencent, while capitalizing on the upcoming World Cup season to drive growth for the FC franchise. To prevent future probability-related incidents, the company is reinforcing its internal governance and operational controls, particularly regarding external studio oversight. Nexon remains committed to a shareholder return policy of distributing at least 33% of the previous year’s operating income, balancing these payouts with disciplined investments in new titles and long-term IP expansion.