NC (036570) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached KRW 557.4 billion, up 55% YoY and 38% QoQ, driven by strong PC and mobile casual performance, including Aion 2 and Lineage Classic launches.

• Operating income was KRW 113.3 billion (20% margin), up 3,389% QoQ and 2,070% YoY; net income was KRW 152.4 billion, up 563% QoQ and 499% YoY, aided by FX gains.

• JustPlay's Q1 revenue grew 70% YoY to KRW 98.3 billion, with operating profit up 138% YoY.

• Mobile casual segment contributed KRW 35.5 billion, reflecting consolidation of Lihuhu and Springcomes.

• Record PC revenue, led by Aion 2 and Lineage Classic, with Lineage Classic billings at KRW 192.4 billion in 90 days post-launch.

Financial highlights

• Revenue: KRW 557.4 billion (+38% QoQ, +55% YoY); PC revenue: KRW 318.4 billion (+69% QoQ, +210% YoY); mobile revenue: KRW 182.8 billion (-3% QoQ, -14% YoY).

• Operating expenses: KRW 444.1 billion (+11% QoQ, +25% YoY); personnel expenses: KRW 244 billion, including incentive pre-recognition.

• Marketing expenses: KRW 37.8 billion (core games: KRW 16.5 billion, mobile casual: KRW 21.2 billion).

• JustPlay's 2023 revenue: KRW 250 billion, operating profit: KRW 28 billion (11% margin).

• Cash and cash equivalents increased to KRW 1,055.9 billion from KRW 503.5 billion at FY 2025.

Outlook and guidance

• Confident in achieving annual revenue guidance of KRW 2.5 trillion for FY2026.

• Targeting higher internal revenue and operating profit; aiming for KRW 5 trillion revenue by 2030 with 20-title pipeline.

• Expecting continued YoY and QoQ revenue and profit growth each quarter.

• AION 2 global launch in Q3, with major marketing events planned.

• Mobile casual revenue to scale further as JustPlay is consolidated from Q2.