COWAY (021240) Q2 2025 earnings summary

Executive summary

• Achieved historical high quarterly revenue and operating profit in 2Q'25, with balanced growth in both domestic and overseas business.

• Revenue for the half-year ended June 2025 was KRW 2,433.8 billion, with operating income of KRW 454.0 billion and net income of KRW 294.3 billion, reflecting continued strength in the core rental business and stable profitability.

• Rental and membership sales accounted for over 90% of total revenue, with a domestic customer base of approximately 7.36 million accounts.

• Major business developments included the spin-off of the cosmetics division and the acquisition of NECOA HOLDINGS, Inc. as a consolidated subsidiary.

• The company maintains a robust financial position, with total assets of KRW 6,325.3 billion and equity of KRW 3,255.6 billion as of June 2025.

Financial highlights

• 2Q'25 consolidated revenue KRW 1,258.9bn (+16.3% YoY), operating profit KRW 242.7bn (+14.9% YoY), net profit KRW 155.5bn (+0.9% YoY).

• Revenue for H1 2025 was KRW 2,433.8 billion, down from KRW 4,310.1 billion for FY2024.

• Gross profit margin at 64.6%, operating margin at 19.3%, and net margin at 12.4% for 2Q'25.

• Gross profit for H1 2025 was KRW 1,568.9 billion.

• Basic EPS for H1 2025 was KRW 4,096.

Outlook and guidance

• 2Q'25 results reached 53% of annual revenue guidance and 54% of operating profit guidance, indicating strong progress toward full-year targets.

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

• Continued focus on expanding the rental business, digital transformation, and ESG initiatives is expected.