NAVER (035420) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached KRW 3.24 trillion, up 16.3% year-on-year, driven by strong growth in advertising, commerce, and global C2C businesses, with all major segments contributing and Wallapop newly consolidated.

• Operating profit rose 7.2% year-on-year to KRW 541.8 billion, with an operating margin of 16.7%.

• Net income declined 31.13% year-on-year to KRW 291 billion, mainly due to higher FX losses and equity method investment losses.

• AI is central to strategy, with new user-facing agents and AI Tab launched, and plans for advertiser/business owner agents in H2.

• R&D investment reached KRW 601.9 billion, representing 18.6% of revenue, supporting AI and platform innovation.

Financial highlights

• Revenue up 16.3% year-on-year to KRW 3.24 trillion; excluding Wallapop, up 15%.

• Operating profit at KRW 541.8 billion, up 7.2% year-on-year.

• Operating margin at 16.7%; net margin at 9.0%.

• Free cash flow for Q1 2026 was KRW 202 billion; cash and cash equivalents at KRW 6.4 trillion.

• Dividend per share for the period was KRW 2,630, with a total payout of KRW 393.6 billion.

Outlook and guidance

• AI monetization to ramp up in H2 with GenAI ad products and expanded agent-driven services.

• Commerce to focus on logistics expansion, aiming for 25% N Delivery coverage this year and 50% in three years.

• Management expects continued growth in digital advertising, e-commerce, fintech, and global content, with AI as a key driver.

• Shareholder return policy targets 25–35% of average two-year FCF via dividends or share buybacks.

• Continued investment in AI infrastructure and global C2C growth expected to drive future revenue.