Nexon Games is a Nexon-affiliated game developer that makes and operates the PC FPS 'Sudden Attack,' the console and PC looter-shooter 'The First Descendant,' and the mobile subculture RPG 'Blue Archive.' With no new title launched in 2025, revenue fell 30% year on year to ₩179.3 billion, and unable to sustain the revenue that had swelled on the summer-2024 hit 'The First Descendant' while development costs for new titles kept flowing out, it swung to a loss with an operating loss of ₩60.2 billion and a net loss of ₩61.8 billion. What stands out lately is that if new titles in development such as 'Project RX' and 'Sudden Attack Zero Point' launch and 'The First Descendant' revives, the revenue gap can be filled and results can rebound; the caution is that if new-title launches slip or perform weakly, the development-cost burden remains and the loss can drag on.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 30.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 19.1% lower than a year earlier.
- ROE is -24.3% (total-net basis). It is below the sector average.
- Operating margin is -33.6%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Nexon Korea 60.01% (corporate)
Controlling bloc incl. related parties 63.38%
With the controlling bloc holding 63%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Nexon Games is a developer that makes and services games itself.
- A subsidiary of the Nexon Group, it has three flagship games.
- On PC, the long-running FPS (a competitive shooting game) 'Sudden Attack' and the console and PC looter-shooter 'The First Descendant,' launched in summer 2024, generate revenue.
- On mobile, the character-collecting subculture RPG 'Blue Archive' earns steadily at home and abroad.
- It also services existing mobile games such as 'V4' and 'HIT2.' Revenue comes from item and in-game purchases paid by players and from royalties on overseas service.
- The stock is at ₩8,770, in a weak stretch.
- Its 20-day, 60-day and 120-day moving averages (recent multi-day and multi-month average prices) are all above the current price, so the downtrend has continued.
- It fell 21% over three months and 29% over six months, and sits 41% below its 52-week high.
- The RSI (an indicator that reads overheated versus depressed on a 0-100 scale) is 39, slightly below neutral, toward the depressed side.
- The trend reads as the continued loss and concerns over new-title delays being reflected in the price.
- By the current figures alone, the financials are in a loss phase.
- 2025 ROE (how much is earned in a year on equity) is -24.3%, eroding equity, and the operating margin is -33.6%.
- The P/E (how many times one year's earnings the price represents) cannot be computed because earnings are in a loss, so we look at the P/B (how many times book net asset value the price represents).
- The P/B is 2.27x, not low for a company not making a profit.
- That said, financial safety is not bad: the current ratio (cash-like assets against debt due within a year) is an ample 471%, and net debt (total borrowings less cash) is a small ₩20.7 billion.
- The debt ratio (debt to equity) is 159%, but most of it is operating liabilities rather than interest-heavy borrowings.
- The FCF yield (the ratio of cash actually earned to market cap) is -8.1%, still in cash outflow due to the loss and development spending.
- Growth peaked in 2024 and then turned down.
- Revenue grew quickly, from ₩63.1 billion in 2021 to ₩132.4 billion in 2022, ₩193.3 billion in 2023 and ₩256.1 billion in 2024.
- It then fell 30% to ₩179.3 billion in 2025.
- The July 2024 launch of 'The First Descendant' had a large effect, and the key point is that in 2025, with no comparable new title, a gap opened.
- Earnings also swung from an operating profit of ₩38.7 billion in 2024 to -₩60.2 billion in 2025.
- The first quarter of 2026 was still in a loss too, with revenue of ₩41.5 billion (-19% year on year) and an operating loss of ₩21.1 billion.
- With the company developing several new titles, the direction of results hinges on the timing and success of those launches.
- Whether net profit swings positive this year is hard to state as a figure, as no official company forecast is confirmed.
- Recent disclosures center on regular filings and the shareholders' meeting.
- The regular shareholders' meeting was completed in March 2026, and the swing to a loss was confirmed via the 2025 business report.
- In May 2026 the first-quarter report showed the loss continuing.
- For this company, given the nature of a game developer, the schedule of new-title launches and updates is the real event for results.
- The subculture new title 'Project RX' in development, 'Sudden Attack Zero Point' slated for a Steam launch, and a new-season update for 'The First Descendant' are the watch points ahead.
- Nexon Games is a developer in a classic 'gap between hits.' Its strengths are clear.
- It has a steady cash cow in 'Blue Archive,' and its development capability, which produced a console and global hit with 'The First Descendant,' is proven.
- Cash and liquidity are also ample, giving it the capacity to fund development costs.
- The cautions are equally clear.
- Right now it is in a stretch of falling revenue and a loss from the new-title gap.
- Development costs keep flowing out until a new title arrives, so if launches slip, the loss drags on.
- In the end this stock has a structure where, if the new titles in development launch on time and succeed, results rebound quickly; conversely, if new titles are delayed or the response is weak, the loss and price weakness continue.
- That the P/B and P/S are not low for a loss-making company can be seen as the market already pricing in some of this new-title rebound potential.
🔎 Valuation vs peers Inconclusive
Among domestic listed game developers and publishers, those with a similar dependence on hit titles and a similar earnings cycle were taken as the comparison group.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Krafton | 14.98x | 1.56x | 10.43% |
| Pearl Abyss | 0.00x | 2.93x | -1.05% |
| Devsisters | 20.08x | 1.27x | 6.31% |
| Kakao Games | 0.00x | 0.64x | -8.45% |
Because it is currently in a loss, it cannot be assessed on P/E, so we use P/B and P/S. The P/B of 2.27x is higher than profitable Krafton (1.56x) or Devsisters (1.27x), and closer to Pearl Abyss (2.93x), which is awaiting new titles. In other words, looking only at the current loss-making state, it is not cheap. But it is hard to conclude 'overvalued' from this figure alone. For a game developer, a structure in which a single new title greatly changes earnings means the trailing metrics (last-year multiples) in a loss phase easily distort the company's actual value. The market pricing the P/B high can be seen as it factoring in the new titles in development and the recovery potential of 'The First Descendant.' Therefore, until a new-title launch and its success are confirmed, it is reasonable to hold judgment rather than conclude undervalued or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩8,770 and the market capitalization is ₩577.6 billion. The price sits below its 20-day moving average (₩8,950) and below its 60-day moving average (₩10,418). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 39.4, a neutral level. The one-month change is -6.2%, the three-month change is -21.4%, and the position relative to the 52-week high is -40.8%. Relative strength versus the KOSDAQ is 54 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 54% of all stocks. Over the past three months it outpaced the index by 6.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +6.34% / 6M -16.33% / 12M -40.02%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 2.27x is above the sector median (1.58x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -24.3%, below the sector average (10.0%). The operating margin is -33.6%. The debt ratio is 158.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $128.1M | $169.7M | $118.8M | -29.97% ↓ slower |
| Operating profit | $8.0M | $25.7M | -$39.9M | -255.52% ↓ slower |
| Net profit | $7.5M | $20.8M | -$41.0M | -296.60% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $41.8M | $87.7M | $128.1M | $169.7M | $118.8M |
| Operating profit | -$2.6M | $3.4M | $8.0M | $25.7M | -$39.9M |
| Net profit | -$5.3M | $4.0M | $7.5M | $20.8M | -$41.0M |
| Revenue CAGR | 4-yr avg 29.85% | ||||
Revenue fell 30.0% year over year (2023 ₩193.3 billion → 2024 ₩256.1 billion → 2025 ₩179.3 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 255.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 29.8%. The two-year revenue CAGR is -3.7%. In the most recent quarter (Q1 2026), revenue was 19.1% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 30.0% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-14EarningsFirst-quarter 2026 quarterly report filed. Revenue ₩41.5 billion (-19% year on year), operating loss ₩21.1 billion, with the loss continuing.Confirms the loss continuing as the new-title gap persists. An earnings rebound depends on new-title launches from the second half on (medium term). Source
- 2026-03-27FilingDisclosure of the results of the regular shareholders' meeting. Regular agenda items such as financial-statement approval processed.Completes regular procedures such as governance and dividends, with limited direct effect on the direction of results (short term). Source
- 2026-03-19Earnings2025 business report filed. Revenue ₩179.3 billion (-30%), operating loss ₩60.2 billion, net loss ₩61.8 billion, confirming the swing to a loss.Officially confirms the revenue shrinkage and swing to a loss from the 2024 peak. The causes are the absence of new titles and continued development costs (medium term). Source
- 2026-02-20FilingDisclosure of a loan of funds to a related party. A funds transaction within the affiliated relationship.A routine disclosure regarding intra-group fund flows, with little direct effect on core-business results (short term). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 full-year revenue (consolidated) | ₩179.3 billion | ₩179.3 billion | Confirmed | link |
| 2025 operating profit and loss (consolidated) | -₩60.2 billion | -₩60.2 billion | Confirmed | link |
| First-quarter 2026 revenue | ₩41.5 billion | ₩41.5 billion | Confirmed | link |
| This year's net profit outlook | — | — | Unverified | link |
Recent filings
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-03-10Disclosure
- 2026-03-10Shareholders' meeting notice
- 2026-03-10Shareholders' meeting notice
- 2026-03-10Shareholders' meeting notice
- 2026-02-27Large-business-group status disclosure
- 2026-02-20Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.