Nexon financial report Q4 2025: ARC Raiders' record sales masked by margin compression and a ¥9B coding error
Summary
Nexon's Q4 2025 revenue hit ¥123.6B, up 55% YoY, driven by ARC Raiders and MapleStory
Operating income of ¥7.2B missed guidance due to bonuses, platform fees, and a ¥3.0B impairment
A MapleStory: Idle RPG coding error triggered full refunds, cutting Q4 revenue by ~¥9B
Full-year revenue reached a record ¥475.1B, but net income fell 32% to ¥92.1B
"ARC Raiders is a proof point in our global expansion strategy"
01
ARC Raiders drove record revenue but cost surges eroded Q4 margins
Q4 operating income of ¥7.2B missed guidance despite a 55% YoY revenue beat
Performance bonuses tied to ARC Raiders' outperformance inflated HR costs beyond plan
Platform fees exceeded forecasts due to strong new title sales mix
A ¥3.0B one-off impairment hit from a published title's service termination
Net income fell 66% YoY to ¥10.9B, partly due to a ¥31.7B FX gain in Q4 2024 not repeated
Live-service breakout hits generate variable cost surges not captured in pre-launch plans
02
MapleStory: Idle RPG coding error will drag results through Q1 2026
A coding error misapplied a paid item's stated value; it was corrected without notifying players or management
Nexon discovered the error on January 25 and offered full refunds on all purchases made before January 28
Q4 impact: ~¥9B revenue reduction and ~¥4B operating income reduction
Q1 2026 spill-over: ~¥5B revenue and ~¥3B operating income drag factored into guidance
"The large refund offer reflects a Nexon operating principle which prioritizes the preservation of player trust in our games and company"
03
ARC Raiders sold 14M units with ¥27.7B in deferred revenue still to recognize
Launched October 30; surpassed 10M units in under two months, 14M by earnings date
Peak concurrent users hit 960,000 in January 2026, 15 weeks post-launch
¥27.7B in ARC Raiders revenue was deferred out of Q4
More than half of that deferral is scheduled for Q1 2026 recognition
Q4 results materially understate the title's actual commercial contribution
04
MapleStory franchise hit its highest revenue in 22 years
Full-year franchise revenue grew 43% YoY, the best annual result in 22 years
Korea MapleStory grew 78% for the full year; Q4 PC cafe share reached a record 45%
Global MapleStory posted record quarterly revenue in the West in Q4
MapleStory Worlds full-year revenue more than tripled YoY
Horizontal revenues reached ¥143.6B for the full year, up 25% YoY
05
Q1 2026 guidance reflects deferred ARC Raiders revenue flowing through
Q1 2026 revenue guidance: ¥150.5B-¥164.0B, up 32%-44% YoY as reported
Operating income guidance: ¥51.2B-¥61.1B, up 23%-47% YoY
MapleStory franchise projected to grow ~30% YoY despite ongoing refund drag
Dungeon&Fighter PC expected to grow YoY in Q1
Capital Markets Briefing on March 31 will cover mid-term targets and content pipeline
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