NAVER (035420) Q2 2026 earnings summary

Executive summary

• Revenue grew 16.2% year-on-year to KRW 3.388 trillion, driven by global C2C and shopping business growth.

• Net income surged 41.6% year-on-year to KRW 704.3 billion, supported by equity method and financial instrument gains.

• Strategic partnership with NVIDIA to build global AI Factories, with a $1 billion investment and first 55 MW facility launching in 2027.

• Asset-light approach in AI Factory and commerce logistics, leveraging partnerships for capital efficiency.

• Strong growth in commerce, financial platform, and global expansion segments.

Financial highlights

• Q2 operating profit was KRW 520.3 billion, flat year-on-year, with an operating margin of 15.4%.

• Net income rose 41.6% year-on-year to KRW 704.3 billion, aided by equity method and valuation gains.

• Free cash flow decreased by KRW 150.5 billion year-on-year to KRW 406.3 billion due to increased CapEx.

• Advertising revenue grew 7.5% year-on-year to KRW 1.4472 trillion; service revenue up 31.3% to KRW 455 billion.

• Global growth revenue increased 24.4% year-on-year to KRW 1.159 trillion; C2C segment up 74.9%.

Outlook and guidance

• Continued investment in AI, commerce, and offline payment infrastructure expected in the near term.

• Growth-related spending to moderate starting next year as current year marks peak investment.

• Asset-light strategy in AI Factory and logistics to minimize capital requirements and support scalability.

• New revenue streams from AI-powered ads and business owner solutions anticipated to drive long-term growth.

• Logistics initiatives and investments in data-driven logistics are planned for the second half to expand N-Delivery and AI commerce.