NHN (181710) Q2 2026 earnings summary

Executive summary

• Achieved record high quarterly consolidated revenue and operating profit in Q2 2026, with operating revenue at KRW 757.9 billion, up 25.3% YoY and 12.9% QoQ, and operating income at KRW 57.9 billion, up 164.1% YoY and 120.6% QoQ.

• Net income for Q2 was KRW 29.1 billion, up 158.8% YoY but down 6.6% QoQ due to prior quarter's one-off gains.

• Profitability improvements reflect multi-year business streamlining and cost control initiatives.

• Balanced profit structure now evident across all major business lines.

• Revenue for H1 2026 was KRW 1,429.3 billion, up 18.6% YoY; operating income rose 69.8% to KRW 84.2 billion; net income reached KRW 60.2 billion.

Financial highlights

• Q2 consolidated revenue: KRW 757.9 billion, up 25.3% YoY and 12.9% QoQ.

• Q2 consolidated operating profit: KRW 57.9 billion, up 164.1% YoY and 120.6% QoQ.

• Q2 net profit: KRW 29.1 billion, up 158.8% YoY but down 6.6% QoQ.

• Operating expenses: KRW 700 billion, up 20.1% YoY and 8.5% QoQ.

• Cash and cash equivalents at June 30, 2026: KRW 822.3 billion; total assets: KRW 3,519.4 billion; total liabilities: KRW 1,709.3 billion.

Outlook and guidance

• Focus on building further growth momentum in the second half of the year.

• Additional 30 MW AI data center capacity to be secured by next year, with new B300 GPUs to expand AI GPU business.

• Depreciation expected to remain stable in Q3, with increases tied to revenue growth.

• IPO plans for NHN Cloud impacted by new regulations; timing and valuation to be optimized.

• At least 15% of prior-year consolidated EBITDA to be allocated to shareholder returns through 2028.