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JONBUR Research · Initiation

Sphere · 347700 · Software

Sphere: Revenue Jumped in 2025 but H1 2026 Net Loss and Leverage Remain Elevated

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Sphere (KOSDAQ, Software) closed at ₩23,500 on 2026-10-12, up 125.1% over one year, with a market cap of about ₩517.9B. Filed statements show revenue surged from ₩2.6B in 2024 to ₩95.6B in 2025, but trailing net income is a ₩45.3B loss.

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.

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Thesis

The data supports a sharp change in business scale: revenue grew from low single-digit billions of won to ₩177.1B on a trailing basis, and operating income turned positive at ₩5.0B (2.8% margin). Frequent contract filings in September and October 2026 suggest ongoing commercial activity, though the filings' sizes and counterparties are not in the data.

What the data does not support is profitability at the bottom line. Trailing net income is -₩45.3B, ROE is -46.5%, and free cash flow is -₩25.5B. The gap between positive operating income and a large net loss is not explained in the data. The share price is 17.2% higher over one month and 18.1% higher over three months, but remains below the 52-week high of ₩57,300. The 52-week low is reported as ₩0, which looks like a data gap and is not usable.

Business overview

Sphere is a KOSDAQ-listed software company, founded on 2012-09-26 and listed on 2021-03-23, with 22,040,013 listed shares. CEO is 최광수. From 2021 to 2024 revenue was small and shrinking: ₩4.6B in 2021, ₩2.8B in 2022, ₩3.3B in 2023 and ₩2.6B in 2024, with operating losses each year. In 2025 revenue reached ₩95.6B, and trailing revenue to H1 2026 is ₩177.1B. The data does not say what drove this change, such as acquisitions or new business lines. No news headlines are available.

Financial analysis

All figures come from filed financial statements (DART).

Annual: 2025 revenue was ₩95.6B, operating income ₩9.1B (9.5% margin) and net income ₩170M (ROE 0.4%). In 2024 the company lost ₩17.0B at the net level, in 2023 ₩11.3B, in 2022 ₩3.3B and in 2021 ₩6.2B.

Trailing twelve months to H1 2026: revenue ₩177.1B, operating income ₩5.0B (2.8% margin), net income -₩45.3B (-25.6% margin), ROE -46.5%. Operating margin has fallen from 9.5% in 2025.

Balance sheet: cash ₩63.2B against borrowings of ₩7.3B, and liabilities to equity of 258.3%. Free cash flow is -₩25.5B.

Valuation

Price to earnings and EV/EBITDA cannot be calculated because earnings are negative or unavailable. Price to book is 3.2 and price to sales is 2.9, with enterprise value of about ₩462.0B. Year-end 2025 P/B was 5.1, so the current multiple is lower than that point. Year-end 2025 P/E was 1,901.6 on near-zero profit, which says little.

Peers in the data: Hyundai Autoever (P/E 50.5, P/B 5.1), Krafton (10.9, 1.3), NC (7.4, 1.3), Netmarble (7.3, 0.5) and PearlAbyss (7.6, 2.0). Sphere's P/B of 3.2 is above most of these, though they are profitable and not directly comparable.

The valuation model estimate is not available (null), so there is no model estimate per share to compare with the ₩23,500 price.

Catalysts

  • Several major sales or supply contract filings (including amendments) were made between 2026-09-22 and 2026-10-07, though their values are not in the data.
  • Investor relations events were held on 2026-09-28 and 2026-09-30.
  • Three insider shareholding reports were filed on 2026-10-13, which may show changes in insider holdings.
  • The next financial statements will show whether operating income holds up and the net loss narrows.

Risks

  • Trailing net loss of ₩45.3B and ROE of -46.5% show losses are large despite revenue growth.
  • Free cash flow of -₩25.5B is a drain on the ₩63.2B cash balance.
  • Liabilities to equity of 258.3% indicates meaningful leverage.
  • Operating margin fell from 9.5% in 2025 to 2.8% on a trailing basis, and the revenue jump is unexplained in the data.
  • Investor flow, foreign ownership and short balance data are unavailable, limiting visibility into market positioning.

Closing view

The data shows a company whose reported scale changed sharply, with revenue of ₩177.1B on a trailing basis versus ₩2.6B in 2024, and a share price up 125.1% in a year. Against that, the net loss, negative free cash flow, high leverage and falling operating margin remain, and no valuation model estimate is available. The numbers support continued monitoring of upcoming filings, but they do not settle whether the recent growth is durable or profitable. This is not a recommendation.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)Sphere: Revenue Jumped in 2025 but H1 2026 Net Loss and Leverage Remain Elevated

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information