Iquest아이퀘스트

Iquest's TTM profit looks strong on paper, but the share price has fallen 28% over the year and revenue growth has slowed.

Iquest is a Korean software and IT consulting company, with a B2B software arm selling cloud ERP to small and mid-sized businesses and a consulting arm serving large corporate clients. Trailing results to H1 2026 show revenue of about ₩44.1B...

What stands out

• Trailing revenue is ₩44.1B, but 2025 revenue growth slowed to 7.2% after 52% in 2023 and 1.4% in 2024 was a weak year.
• Operating margin has compressed from 23% in 2021 to 8.4% on a trailing basis, while trailing net income of ₩8.1B is well above operating income of ₩3.7B, so the gap is not explained in the data.
• Trailing free cash flow is negative at -₩2.2B, and borrowings of ₩40.2B exceed cash of ₩7.2B.
• The shares trade at 3.7x trailing earnings and 0.5x book, with a 2.4% dividend yield, while the DCF model gives a base value of ₩4,143 against a ₩2,900 close, with a wide bear-to-bull range of ₩505 to ₩10,867.
• Filings in 2026 include a share buyback decision and a share cancellation decision, and a corporate value-up plan was filed in March; no news headlines were provided.

What to watch

• The Q3 2026 quarterly report and whether operating margin and free cash flow recover from current levels.
• Progress on the buyback and cancellation, and any further insider or major-holder filings.
• Debt levels against cash, since the data shows borrowings well above cash balances.