COWAY (021240) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 13.7% YoY to KRW 1.426tn and operating profit rose 7.3% to a quarterly record KRW 260.8bn; overseas revenue reached 41.5% of the total.

• Rental accounts increased 11.9% YoY to 12.5m, supported by domestic and overseas additions.

• 9M revenue reached KRW 4,198.1bn and operating income KRW 765.0bn, up 13.8% and 9.7% YoY; 9M net income was nearly flat at KRW 471.8bn.

Financial highlights

• Q3 revenue was KRW 1,426.1bn (+13.7% YoY) and operating profit KRW 260.8bn (+7.3%); operating margin was 18.3%, down 1.1 percentage points.

• Q3 net income was KRW 111.5bn, down 36.6% YoY, primarily on FX impact; 9M consolidated net income was KRW 471.8bn versus KRW 470.3bn in 9M 2025.

• Domestic revenue rose 2.0% to KRW 754.9bn; overseas revenue increased 26.2% to KRW 591.8bn.

• Q3 COGS rose 17.0% YoY to KRW 522.8bn and SG&A rose 13.8% to KRW 642.4bn; higher raw-material costs and finance-lease mix lifted the COGS ratio.

• 9M operating cash flow was negative KRW 215.8bn versus positive KRW 237.0bn a year earlier, including a KRW 782.3bn increase in finance lease receivables in cash-flow adjustments.

Outlook and guidance

• By Q3, 77% of the upper-bound full-year revenue target and 80% of the operating profit target had been achieved; management expected to exceed annual targets.

• Thailand targets over 1m cumulative rental accounts and a double-digit operating margin by 2028 through category expansion and stronger sales execution.

• Strategy emphasizes rental-led sales, service and care networks, broader online and offline channels, and products incorporating AI and IoT features.