NHN (181710) Q4 2025 earnings summary

Executive summary

• Achieved record performance in Q4 and full year 2025, driven by business structure optimization, streamlining, and focus on core businesses, with FY2025 operating revenue of KRW 2,516.3 billion, up 2.5% year-over-year.

• Turned profitable in both operating and net income for FY2025, with Q4 net profit of KRW 28.7 billion and FY net profit of KRW 57.7 billion.

• Significant improvement in operating profit margin to 8.0% in Q4 and 5.3% for FY2025.

• Streamlining efforts and portfolio rebalancing led to improved profitability and operational efficiency.

• Expect continued growth in 2026, with core businesses and further streamlining planned.

Financial highlights

• 2025 full-year revenue: KRW 2,516.3 billion, up 2.5% year-over-year.

• Full-year operating profit: KRW 132.4 billion; net profit: KRW 57.7 billion.

• Q4 revenue: KRW 685.7 billion, up 6.5% year-over-year and 9.6% quarter-over-quarter.

• Q4 operating profit: KRW 55.1 billion, up 120.5% year-over-year and 99.5% quarter-over-quarter; OP margin: 8.0%.

• Q4 net profit: KRW 28.7 billion, a 59.2% quarter-over-quarter increase despite a KRW 16.7 billion goodwill impairment.

Outlook and guidance

• Business streamlining effects expected to continue supporting strong performance through 2026.

• Cloud business anticipated to deliver significant growth, with GPU projects and disaster recovery as key drivers.

• Game business pipeline includes major IP launches, such as "Oshi no Ko: Match Star" and "Dissidia Duellum Final Fantasy," with high expectations for new titles and regulatory tailwinds.

• Additional streamlining planned in 2026, with further upside expected for operating profit.