JONBUR Research · Initiation
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Kakao · 035720 · Internet
Kakao: Profits Recovering but Shares Down 48.5% Over One Year
Kakao's filed financials show operating income rising to ₩929.1B over the trailing twelve months to H1 2026, while the share price closed at ₩32,000, close to its 52-week low of ₩31,650. Headlines point to an AI push and a labor union dispute over a spin-off.
Written Oct 13, 2026 · Data as of Oct 12, 2026 · 0 views
This is not financial advice. The report does not recommend buying or selling anything.
Thesis
The data supports an earnings recovery. Operating margin moved from 5.8% in 2024 to 9.0% in 2025 and 11.3% on a trailing basis, and free cash flow is positive at ₩587.7B. The balance sheet looks sturdy, with cash of ₩8.18T against borrowings of ₩335.0B.
The data does not show that the market has rewarded this. The share price fell 7.2% in one month, 7.9% in three months and 48.5% in one year, and is ₩37,700 below its 52-week high of ₩69,700. Revenue growth is modest (2.9% in 2025), and net margin of 4.2% and ROE of 3.2% remain low. Investor flow, foreign ownership and short balance data are not available, so we cannot say who has been selling.
Business overview
Kakao is a KOSPI-listed internet company, founded in 1995 and listed on 2017-07-10. It has 442,124,799 listed shares and a market capitalization of about ₩14.15T. Revenue grew from ₩5.91T in 2021 to ₩8.10T in 2025, with trailing revenue of ₩8.25T. Recent headlines describe a push into AI services on its messaging platform and the consolidation of messenger operations at headquarters. The CEO is listed as 정신아. The data does not break revenue down by segment.
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Report history
Source: KRX statistical information