NHN Entertainment Corp (XKRX:181710) Q4 2025 Earnings Call Highlights: Record Growth and …

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Fri, February 13, 2026 at 10:07 AM GMT+9 4 min read

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**Full Year Revenue:** KRW2,516.3 billion, 2.5% growth YoY.

**Full Year Operating Profit:** KRW132.4 billion, returning to positive earnings.

**Full Year Net Profit:** KRW57.7 billion.

**Q4 Revenue:** KRW685.7 billion, 6.5% YoY and 9.6% QoQ increase.

**Q4 Operating Profit:** KRW55.1 billion, 120.5% YoY and 99.5% QoQ growth.

**Q4 Operating Margin:** 8.0%.

**Q4 Game Revenue:** KRW126.1 billion, 6.0% YoY and 6.7% QoQ increase.

**Mobile Game Revenue:** KRW83.8 billion, 12.3% YoY and 9.3% QoQ increase.

**Payment Revenue:** KRW345.6 billion, 16.2% YoY and 5.6% QoQ growth.

**Tech Revenue:** KRW139.1 billion, 17.4% YoY and 24.5% QoQ increase.

**NHN Cloud Revenue:** 30.7% YoY and 37.6% QoQ increase.

**Other Businesses Revenue:** KRW94.3 billion, 5.2% QoQ increase.

**Operating Expenses:** KRW630.6 billion, 1.9% YoY and 5.5% QoQ increase.

**Q4 Net Profit:** KRW28.7 billion, 59.2% QoQ increase.

Warning! GuruFocus has detected 7 Warning Signs with XKRX:181710.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

NHN Entertainment Corp (XKRX:181710) achieved record performance in Q4 and full year 2025, reflecting successful business structure optimization.

The amendment of the Korean Game Act led to a double-digit increase in web board game revenue, indicating positive regulatory impact.

NHN KCP recorded a 16% YoY increase in Q4 revenue, driven by a significant rise in overseas merchant volume.

NHN Cloud achieved quarterly positive operating profits for the first time, with a 17% YoY and 24% QoQ increase in tech business revenue.

The company successfully streamlined its business portfolio, leading to improved profitability and a focus on core businesses.

Negative Points

The company's earnings are subject to change pending external auditor review, introducing potential uncertainty.

Quarter-to-quarter volatilities are expected due to seasonality and the inherent nature of the game, payment, and tech businesses.

Despite positive trends, Q1 is not expected to be the strongest season due to seasonal business fluctuations.

The company recognized a goodwill impairment loss of KRW16.7 billion related to subsidiaries, impacting net profit.

Revenue from other businesses decreased by 25.8% YoY due to the discontinuation of some services, reflecting challenges in non-core areas.

Q & A Highlights

Q: Your Q4 results were quite strong. Do you think this trend could continue throughout 2026? Can you provide guidance for Q1 and full year 2026, especially for your cloud business? A: (Hyeon Sik Ahn, CFO) The strong Q4 performance is largely due to our business streamlining efforts. We expect this effect to continue throughout 2026. While Q1 is typically less strong due to seasonality, we anticipate strong performance in Q2, Q3, and Q4. For the cloud business, we expect continued revenue growth from the GPU business and disaster recovery work, with a clear profit goal on an operating profit basis.

Story Continues  

Q: Can you share expectations for your new game pipeline this year? A: (Hyeon Sik Ahn, CFO) We have high expectations for our new games, particularly the Final Fantasy game, which is based on a popular IP. We aim for at least a 10% contribution to our operating profit. Additionally, changes in web board game regulations present growth opportunities.

Q: Regarding your business streamlining initiatives, how far have you come, and what is left to do? A: (Hyeon Sik Ahn, CFO) We made significant progress in 2025, but some streamlining remains for 2026. We expect additional upside in operating profit from these efforts.

Q: There was KRW16.7 billion of goodwill impairment recognized. Is there room for further decreases in goodwill impairment? A: (Hyeon Sik Ahn, CFO) Most goodwill impairments were related to streamlined or downsized businesses and have been reduced to a low level. We do not expect further goodwill impairments.

Q: With the easing of web board game regulations, do you expect users to max out their additional billing limits? A: (Hyeon Sik Ahn, CFO) We expect trends similar to previous regulatory changes, where users max out their billing limits, leading to top-line growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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