NEXON Co.

NEXON Co., Ltd. has formalized a strategic reduction in its equity base through the mandatory cancellation of treasury shares, a move approved by its Board of Directors in accordance with Article 178 of the Companies Act. This corporate action involves the retirement of 36,487,500 ordinary shares, representing approximately 4.4% of the company’s total issued shares as of January 31, 2026. By eliminating these shares, the company effectively reduces its total outstanding share count to an expected 792,078,539 shares, thereby consolidating ownership for existing shareholders.

The scope of this cancellation encompasses the entirety of the treasury shares held by the company as of the end of January 2026. The execution of this retirement is scheduled for February 27, 2026. This decision reflects a standard capital management practice within the Japanese gaming and technology sectors, typically aimed at improving earnings per share and enhancing shareholder value by permanently removing shares from circulation.

The data provided indicates a precise adjustment to the company's capital structure within the Tokyo Stock Exchange Prime Market. This administrative procedure follows the company's internal governance protocols and adheres to Japanese regulatory requirements for publicly traded entities. The financial impact is centered on the contraction of the share float rather than a change in the underlying business operations or geographic footprint of the organization.

Nexon reported record-breaking financial results for the fiscal year ended December 31, 2025, driven by a strategic IP growth initiative that balanced the expansion of legacy franchises with successful new global launches. Full-year revenue reached ¥475.1 billion, a 6% increase year-over-year, while operating income remained stable at ¥124.0 billion. The fourth quarter saw a significant revenue surge of 55% to ¥123.6 billion, although net income declined 66% to ¥10.9 billion, primarily due to fluctuations in foreign exchange gains compared to the previous year and higher-than-anticipated costs related to performance bonuses and platform fees.

The growth was spearheaded by the launch of ARC Raiders, which sold over 14 million units within 15 weeks and achieved a peak of 960,000 concurrent users. Simultaneously, the 22-year-old MapleStory franchise delivered its highest annual revenue in history, growing 43% year-over-year. This performance offset a 21% decline in the Dungeon&Fighter franchise, despite a strong recovery in its PC segment in China and Korea. The period was also marked by a significant player trust initiative regarding MapleStory: Idle RPG; a coding error led Nexon to offer full refunds, resulting in a ¥9 billion reduction in Q4 revenue.

Geographically, the results reflect Nexon’s successful diversification beyond its traditional Asian strongholds into Western markets via console and PC platforms. Looking ahead to the first quarter of 2026, the company expects revenue growth between 32% and 44%, supported by sustained momentum from new titles and major updates to core IPs. Nexon remains committed to aggressive shareholder returns, doubling its dividend and completing a ¥100 billion share buyback program during the fiscal year.

Nexon Group achieved record-breaking consolidated revenue of ¥475.1 billion for the fiscal year ended December 31, 2025, representing a 6.5% year-on-year increase. This growth was primarily driven by the Korea segment, which contributed ¥400.7 billion, and a robust performance in the PC online market. Key intellectual properties, including Dungeon&Fighter and MapleStory, alongside the successful launch of ARC Raiders, underpinned this expansion. Despite the revenue gains, profit attributable to owners fell 31.7% to ¥92.1 billion. This decline was largely influenced by foreign exchange losses, increased marketing and royalty expenses, and an ¥8.6 billion impairment loss on equity method investments.

The financial position remains strong, characterized by a cash reserve of ¥498.9 billion and total assets reaching ¥1.41 trillion. Net cash from operating activities rose significantly to ¥171.9 billion, while investing activities turned positive due to ¥197.6 billion in proceeds from the sale and redemption of securities. To enhance shareholder value and capital efficiency, the annual dividend was doubled to ¥45.00 per share, and the board approved the cancellation of approximately 36.5 million treasury shares. These actions followed a substantial ¥96.9 billion allocation toward treasury share purchases during the fiscal year.

Looking forward to the first quarter of 2026, revenue is projected to grow between 32.1% and 44.0% year-on-year, reaching up to ¥164.0 billion. This optimistic outlook is supported by the continued momentum of the MapleStory franchise and the integration of recent releases like Mabinogi Mobile. While the Dungeon&Fighter franchise may face a temporary revenue decline, the overall trajectory suggests a pivot toward aggressive growth. The company continues to leverage its free-to-play microtransaction model across PC and mobile platforms to maintain its dominant market position in Korea and expand its footprint in North American and European markets.

Nexon Co., Ltd. has announced its slate of candidates for the Board of Directors, including members of the Audit and Supervisory Committee. These appointments are scheduled for official resolution at the 24th Annual General Meeting of Shareholders on March 25, 2026. The selection reflects a mix of internal leadership continuity and the strategic addition of external expertise in legal, financial, and industry-specific domains.

The proposed slate for general Directors includes current executives Junghun Lee (CEO), Shiro Uemura (CFO), Patrick Söderlund (Executive Chairman), and Daehyun Kang. Alexander Iosilevich, currently an Audit and Supervisory Committee member and Global President of NXC Corporation, is transitioning to a general Director role. Additionally, Kaoru Hattori, a partner at Nagashima Ohno & Tsunematsu with extensive legal and trade policy experience, is nominated as a new Outside Director.

For the Audit and Supervisory Committee, the candidates include Shiro Kuniya, Naoya Tsurumi, and Hanmin Cho. Tsurumi brings significant gaming industry experience from his previous leadership roles at SEGA SAMMY HOLDINGS and SEGA CORPORATION. Cho, currently the Head of Investment Division (Korea) for NXC Corporation, provides expertise in private equity and accounting. All three committee candidates are designated as Outside Directors under the Companies Act, emphasizing the organization's focus on independent oversight and corporate governance. None of the new candidates currently hold shares in the company.

Nexon Co., Ltd. has officially approved a significant increase in its dividend payments for the fiscal year ending December 31, 2025, reflecting a robust commitment to shareholder returns. The year-end dividend is set at 30.00 yen per share, which aligns with the forecast previously issued in November 2025. This figure represents a 100% increase over the 15.00 yen per share paid out during the same period in the previous fiscal year. The total dividend payment for this period amounts to approximately 23,787 million yen, sourced entirely from retained earnings, with an effective payment date scheduled for March 26, 2026.

The annual dividend structure for the 2025 fiscal year totals 45.00 yen per share when combining the interim and year-end distributions. This is a substantial rise from the 22.50 yen total distributed in 2024. The decision to double the payout is based on a corporate policy that evaluates shareholder equity, management performance, and the overall earnings outlook to determine appropriate profit distribution. By doubling the per-share payout, the company signals a strong financial standing and a positive outlook on its business results.

This financial action pertains specifically to Nexon’s performance within the Japanese securities market, where it is listed on the Tokyo Stock Exchange Prime Market. The scope of the announcement covers the full 2025 fiscal year, providing a comparative analysis against 2024 data to illustrate the company's aggressive shift toward higher shareholder compensation. The strategy underscores a balanced approach to utilizing retained earnings while maintaining the necessary capital to support ongoing business operations and future growth initiatives.

Nexon Co., Ltd. – Q3 2024 Earnings Press Release (Nov 12 2024)

1. Core Financial Results (Q3 2024, ended Sept 30 2024)

| Metric | FY 2024 Q3 | YoY Change | Constant‑Currency (CC) | |--------|------------|------------|------------------------| | Revenue | ¥135.6 bn | +13 % (as‑reported) / +12 % (CC) | Slightly below outlook (FX headwind) | | Operating Income | ¥51.5 bn | +11 % (as‑reported) / +10 % (CC) | Within expected range | | Net Income | ¥27.0 bn | ‑23 % (as‑reported) / ‑24 % (CC) | Impacted by ¥19.6 bn FX loss | | FX Impact | – | Revenue hit by adverse yen movements; FX loss drove net‑income decline |

All figures are in Japanese yen (¥).

2. Growth Drivers & Franchise Performance

| Franchise | Q3 2024 Growth | Highlights | |-----------|----------------|------------| | Dungeon & Fighter (DnF) | +142 % YoY (overall franchise) | • Launch of DnF Mobile in China (May 21) <br>• New updates & “New Year” content for both mobile & PC in China (Q4 2024 / Q1 2025) <br>• Upcoming titles: The First Berserker: Khazan, DnF: Arad, Project OVERKILL | | MapleStory | +23 % YoY (outside Korea) | • Outside‑Korea revenue > 40 % of total <br>• Record Q3 sales in Japan, NA, EU & Rest‑of‑World (hyper‑localization) <br>• Soft‑launch of MapleStory Worlds (NA & SA) <br>• Large Q4 test for MapleStory N (PC MMORPG with blockchain) | | FC (Fighting‑Club) Franchise | Slight decline YoY (tough comparison to record Q3 2023) | • Expect double‑digit YoY growth in Q4 2024 <br>• Full‑year revenue projected near 2023 record | | New IP – The First Descendant | Strong start (July launch) | • ~75 % of global revenue from Western markets <br>• Ongoing updates planned to cement it as a “consistent contributor” |

3. Strategic Initiatives

| Initiative | Focus | Key Actions | |------------|-------|-------------| | Vertical Growth Initiative | Deepen existing franchises | • Product extensions, new platforms, regional expansion, hyper‑localization <br>• New titles & major content updates (see DnF & MapleStory) | | Horizontal Growth Initiative | Add new pillars to the portfolio | • Shooters – The First Descendant, THE FINALS (Season 5 in Dec), ARC Raiders (public test Oct, release 2025) <br