Nexon Q2 Results: Net Profit Up 77% YoY, $2 Billion Special Dividend

3 min read | Published on 13 Aug 2026, 10:59 PM |Updated on 13 Aug 2026, 10:59 PM

Reviewed by

Shriram SScanX News Team

Key Highlights

Nexon’s Q2 2026 net income surged 77% to ¥29.6 billion, driven by MapleStory’s record revenue and reduced FX losses. Operating income fell 17% to ¥31.3 billion due to higher variable costs. The company declared a ¥324 billion special dividend, citing strong cash reserves of ¥842 billion.

*this image is generated using AI for illustrative purposes only.

Nexon Co., Ltd. (Nexon) (3659.TO) reported second-quarter 2026 results with net income rising 77% year-over-year to ¥29.6 billion, significantly exceeding internal outlooks. The top-line performance was supported by the MapleStory franchise, which delivered record quarterly revenue up 63% year-over-year, alongside continued contributions from ARC Raiders. Despite revenue growth of 2% to ¥121.1 billion, operating income contracted 17% to ¥31.3 billion as higher revenue-linked costs, including creator fees and cloud services, outpaced top-line gains.

In a major capital return move, Nexon announced a special dividend of ¥415 per share, totaling approximately ¥324 billion ($2 billion). This payout is funded by a cash reserve of ¥842 billion as of June 30, 2026, bolstered by recent investment divestitures that generated ¥142 billion in gains. The Board aims to improve capital efficiency, targeting a minimum return on equity (ROE) of 10%, with a mid-to-long-term goal of 15%.

Financial Performance

Metric:	Q2 2026	YoY Change	Notes
Revenue:	¥121.1 billion	+2%	Down 6% on constant-currency basis
Operating Income:	¥31.3 billion	-17%	Down 31% on constant-currency basis
Net Income:	¥29.6 billion	+77%	Driven by operating outperformance and FX

The 77% surge in net income was primarily operational in nature regarding the bottom line but heavily influenced by non-operating factors. Specifically, the quarter saw a ¥5.5 billion valuation gain on funds and a significant reduction in foreign exchange losses compared to the prior year. Nexon recorded a ¥1.7 billion FX loss in Q2 2026, a sharp improvement from the ¥17.5 billion loss recognized in Q2 2025. Total expenses came in below plan, as lower-than-expected human resource costs from a non-recurring reversal of share-based compensation offset higher creator fees.

What the Numbers Show

A critical divergence exists between Nexon’s revenue growth and its operating profitability. While revenue expanded 2% year-over-year, operating income declined 17%. This compression reflects a structural shift in cost dynamics; the company explicitly cited higher revenue-linked costs such as creator fees, user-acquisition expenses, and cloud service fees associated with growing global live services. The margin contraction suggests that while new titles like ARC Raiders and updates to MapleStory are driving top-line volume, the associated variable costs are currently absorbing a larger share of incremental revenue than in the prior period.

Franchise Highlights

The MapleStory franchise remained the primary growth engine, contributing approximately 15% of total revenue through ARC Raiders and sustaining momentum across its portfolio:

MapleStory Franchise: Reached a record quarterly high with 63% year-over-year revenue growth. Korea MapleStory grew 7% year-over-year, building on last year’s 91% surge. Global MapleStory declined 7% against a strong prior-year base but is expected to grow double digits in Q3.
ARC Raiders: Cumulative unit sales surpassed 16.3 million, adding 800,000 units in Q2. The title has generated more than ¥88 billion since its October 2025 launch. A major content update, Frozen Trail, is scheduled for October.
Dungeon&Fighter: Franchise revenue declined 44% year-over-year. PC revenue in China declined year-over-year despite solid retention, while Korea revenue fell due to a soft reception to the March update.
FC Franchise: Revenue fell below outlook and declined year-over-year as traffic and monetization were softer than expected for both FC ONLINE and FC MOBILE.

Outlook and Pipeline

For the third quarter of 2026, Nexon expects revenue between ¥120.7 billion and ¥133.4 billion, representing a 2% to 12% year-over-year increase on an as-reported basis. Operating income is projected at ¥22.6 billion to ¥32.3 billion, down 14% to 40% year-over-year. Net income guidance stands at ¥18.2 billion to ¥25.6 billion, reflecting a 33% to 52% decline year-over-year. This decline is partly attributed to non-recurring items in Q3 2025, including a ¥3.9 billion gain from trust liquidation and a ¥9.2 billion FX gain, which will not repeat. Additionally, Q3 2026 includes a one-time cost of ¥1.5 billion for stock option adjustments related to the special dividend.

The upcoming pipeline includes the global mobile launch of DAVE THE DIVER on September 17 and the regional expansion of MABINOGI MOBILE in Taiwan, Hong Kong, and Macau. Nexon also launched Overwatch on PC in Korea in partnership with Blizzard Entertainment.

How will the structural increase in revenue-linked costs, such as creator fees and cloud services, impact Nexon's ability to achieve its mid-to-long-term 15% ROE target?

What is the projected contribution of the global mobile launch of *DAVE THE DIVER* to Q3 and Q4 revenue, and will it help offset the declining performance of the *Dungeon&Fighter* and *FC* franchises?

With operating income expected to decline significantly in Q3 due to one-time factors, how sustainable is the current dividend payout policy given the reduction in cash reserves from the ¥324 billion special dividend?