NAVER (035420) Q1 2026 earnings summary

Executive summary

• Q1 revenue reached KRW 3.24 trillion, up 16.3% year-on-year, driven by strong growth in advertising, commerce, and global C2C businesses.

• 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.

• C2C platforms like Poshmark and SODA delivered strong GMV and revenue growth, with Wallapop newly consolidated.

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%, down from 18.1% a year ago.

• Net income down 31.13% year-on-year to KRW 291 billion.

• Free cash flow decreased by KRW 152.1 billion year-on-year to KRW 319.8 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.

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

• Plans to broaden content genres and user base, and expand enterprise initiatives globally.