Nexon Q1 2026 Earnings Results

Key insights

7 takeaways

01
Nexon reported record Q1 2026 financial results with revenue of ¥152.2 billion (up 34% YoY) and operating income of ¥58.2 billion (up 40% YoY).See it on page 2
02
Net income surged 118% to ¥57.2 billion, driven by strong performance in the ARC Raiders franchise, which reached 16 million cumulative units sold, and a 42% revenue increase in the MapleStory franchise.See it on page 2
03
The company is prioritizing its IP Growth Initiative by cancelling three underperforming projects to reallocate resources toward new titles including NAKWON: LAST PARADISE and Woochi the Wayfarer.See it on page 6
04
Nexon secured long-term publishing stability by extending partnerships with Tencent for Dungeon&Fighter in China and Electronic Arts for EA SPORTS FC in Korea.See it on page 2
05
Management expects a Q2 revenue decline for the Dungeon&Fighter franchise due to difficult year-over-year comparisons.See it on page 3
06
Future growth catalysts for late 2026 include the launch of MABINOGI MOBILE in Taiwan and Japan, Dungeon&Fighter: Idle RPG, and the publishing of Azur Promilia.See it on page 4
07
Nexon is implementing a cost-management strategy that includes a commitment to maintain flat headcount and human resources costs for the remainder of 2026.See it on page 2

Summary

Nexon achieved record-setting financial results for the first quarter of 2026, characterized by significant year-over-year growth in revenue and operating income. The company reported quarterly revenue of ¥152.2 billion, a 34% increase on an as-reported basis, and operating income of ¥58.2 billion, representing a 40% increase. Net income rose by 118% to ¥57.2 billion, bolstered by a substantial foreign exchange gain. These results were primarily driven by the sustained global performance of the ARC Raiders franchise, which surpassed 16 million cumulative units sold, and a 42% year-over-year revenue increase in the MapleStory franchise.

The company’s strategic focus remains on its multi-year IP Growth Initiative, which emphasizes both vertical expansion of existing franchises and horizontal development of new IP. Key operational highlights include the extension of long-term publishing partnerships with Tencent for Dungeon&Fighter in China and with Electronic Arts for the EA SPORTS FC franchise in Korea. Furthermore, Nexon is actively refining its development pipeline, having cancelled three underperforming projects to reallocate resources toward promising titles such as NAKWON: LAST PARADISE and Woochi the Wayfarer.

Looking toward the second half of 2026, the company anticipates growth catalysts including the release of MABINOGI MOBILE in Taiwan and Japan, the launch of Dungeon&Fighter: Idle RPG, and the introduction of new publishing projects like Azur Promilia. While the second quarter outlook reflects expected revenue declines in the Dungeon&Fighter franchise due to difficult year-over-year comparisons, management remains committed to a transformation initiative focused on creative process improvements, margin expansion, and strict cost management, including a commitment to maintain flat headcount and human resources costs throughout the remainder of the year.