NEXON Co., Ltd.

Q2 revenue was JPY118.9 billion, down 3% YoY as reported and up 6% on a constant-currency basis. Q2 operating income was JPY37.7 billion, down 70% YoY as reported and down 10% constant-currency, while net income was JPY16.8 billion, down 58% YoY, mainly due to a JPY17.5 billion FX loss on U.S. dollar cash deposits. By franchise, MapleStory revenue grew 60% YoY, Dungeon&Fighter PC grew 67% YoY, the Korean Dungeon&Fighter business grew 132% YoY, and MapleStory Worlds grew more than 7x YoY. For Q3, NEXON guided revenue to JPY116.6 billion-JPY127.1 billion, operating income to JPY32.7 billion-JPY41.2 billion, and net income to JPY26.4 billion-JPY32.8 billion. Management said Q3 revenue should be down 14% to 6% YoY as reported, or down 12% to 4% constant currency, with operating income down 36% to 20% YoY as reported.

CEO Junghun Lee framed the quarter as evidence that NEXON has “reignited growth” in its core franchises and successfully launched new products and services. He emphasized the company’s strategy of extending major IP through new experiences, hyper-localization, and live operations, especially around MapleStory, Dungeon&Fighter, and MABINOGI MOBILE. His tone was confident and forward-looking, with repeated focus on ARC Raiders, MapleStory: Idle RPG, THE FINALS in China, and expanding NEXON’s international footprint.

CFO Shiro Uemura said Q2 beat expectations despite negative FX, with revenue of JPY118.9 billion and operating income of JPY37.7 billion, but net income was only JPY16.8 billion because of a JPY17.5 billion FX loss. He walked through the franchise mix, noting stronger-than-expected Dungeon&Fighter PC, MapleStory, FC Online, and MABINOGI MOBILE performance, and he outlined Q3 margin pressure from higher royalty expenses, platform fees, marketing for FC/MapleStory/MABINOGI MOBILE/ARC Raiders, and higher creator fees for MapleStory Worlds. He also noted a JPY4 billion gain from liquidating subsidiary funds, and confirmed shareholder returns: JPY50 billion repurchased by June 25, with another JPY25 billion approved for August 14 to October 31.

Analysts focused on what titles could drive the next leg of growth, why Dungeon&Fighter PC was strong in Korea and China yet expected to soften sequentially, and whether labor and SG&A costs would rise sharply. Management said the biggest near-term momentum is ARC Raiders, while MapleStory: Idle RPG, THE FINALS in China, and a global MABINOGI MOBILE rollout are also important pipeline pieces. On costs, Junghun Lee said there would be no abrupt increase in HR costs outside existing policy, and Uemura added that recruiting is on track, incentive bonuses are lower, and the company is investing in people to support 2027 goals. For Dungeon&Fighter Mobile, management said the key KPI is bringing back dormant players and raising MAUs, and that Tencent co-developed content is intended to drive long-term growth rather than an immediate turnaround.