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. Net income was JPY16.8 billion, down 58% YoY, mainly due to a JPY17.5 billion FX loss on U.S. dollar-denominated cash deposits. On the business side, MapleStory revenue grew 60% YoY, Dungeon&Fighter PC grew 67% YoY, MapleStory Korea revenue rose 91% YoY, and MapleStory Worlds grew more than 7x YoY. For Q3, NEXON guided to revenue of JPY116.6 billion to JPY127.1 billion and operating income of JPY32.7 billion to JPY41.2 billion. Management expects Dungeon&Fighter to decline about 45% YoY, MapleStory to accelerate to about 70% YoY growth, FC to be roughly flat, and MABINOGI MOBILE to contribute significantly. The company also said it had repurchased JPY50 billion under its JPY100 billion buyback policy, with another JPY25 billion scheduled from August 14 to October 31.

The CEO framed Q2 as evidence that NEXON has “reignited growth” in core franchises while also introducing new games that can expand the company’s global reach. He emphasized the strength of Dungeon&Fighter content updates, MapleStory’s transformation into a platform with multiple experiences, and the early success of MABINOGI MOBILE. His tone was confident and forward-looking, repeatedly pointing to ARC Raiders, MapleStory: Idle RPG, THE FINALS in China, and Woochi the Wayfarer as the next drivers of international expansion.

The CFO highlighted that Q2 results beat expectations despite FX headwinds: revenue of JPY118.9 billion and operating income of JPY37.7 billion were better than guidance, but net income of JPY16.8 billion was hit by a JPY17.5 billion FX loss. He detailed Q3 drivers and headwinds, including increased royalty and platform fees from MABINOGI MOBILE, higher marketing for FC, MapleStory, MABINOGI MOBILE, and ARC Raiders, and higher creator fees from MapleStory Worlds, partly offset by lower HR costs and a JPY4 billion gain from liquidating subsidiary funds. He also reiterated capital returns, noting JPY50 billion of the JPY100 billion buyback had been completed and that another JPY25 billion would be repurchased between August 14 and October 31.

Analysts focused on what new titles can drive the next leg of growth, especially ARC Raiders, MapleStory: Idle RPG, THE FINALS in China, and MABINOGI MOBILE’s global potential. Management said ARC Raiders is the biggest near-term launch, pointing to its October 30 release, number-six Steam wish-list ranking, and a USD40 price point, while also saying MapleStory: Idle RPG should broaden the audience with casual gameplay. Questions on Dungeon&Fighter PC and Mobile centered on why Q3 growth looks more moderate; management said there was no recent slowdown, that Q3 is easier only because Q1 and Q2 updates were very aggressive, and that the Tencent co-developed content is aimed at long-term recovery rather than an immediate turnaround. On costs, management pushed back on the idea of a sharp labor-cost spike, saying there would be no abrupt increase in HR costs and that staffing is being expanded in line with 2027 growth goals.