COWAY (021240) Q3 2025 earnings summary

Executive summary

• Achieved double-digit consolidated revenue growth of 14.0% year-over-year in 3Q'25, with operating profit margin reaching a historical high of 19.4% and operating profit up 17.4% year-over-year.

• Net profit for 3Q'25 was KRW 176.0bn, a slight decrease of 2.0% year-over-year, despite record revenue and operating profit.

• Revenue for the nine months ended September 2025 was KRW 3,688.2 billion, with rental revenue accounting for 91.1% of total sales.

• Operating income reached KRW 697.0 billion, and net income attributable to owners was KRW 470.5 billion.

• The company maintains a leading position in the domestic home wellness appliance rental market, with 7.52 million rental and membership accounts.

Financial highlights

• 3Q'25 consolidated revenue: KRW 1,254.4bn (+14.0% YoY); operating profit: KRW 243.1bn (+17.4% YoY); net profit: KRW 176.0bn (−2.0% YoY).

• Gross profit for 3Q'25 was KRW 807.7bn (+14.2% YoY), with COGS at KRW 446.7bn (+13.7% YoY).

• SG&A expenses increased 12.9% YoY to KRW 564.6bn.

• Revenue for the nine months ended September 2025 was KRW 3,688.2bn, down from KRW 4,310.1bn YoY; operating income declined to KRW 697.0bn from KRW 795.4bn; net income attributable to owners dropped to KRW 470.5bn from KRW 565.6bn.

• Basic EPS for the period was KRW 6,554, down from KRW 7,841 in the prior year.

Outlook and guidance

• By 3Q'25, 80% of annual revenue and 82% of operating profit guidance had been achieved, indicating strong progress toward full-year targets.

• The company targets a shareholder return policy of distributing 40% of consolidated net income as dividends for 2024–2027.

• Continued focus on expanding rental business, digital transformation, and ESG management.

• Ongoing investment in R&D and product innovation to maintain market leadership.