1. What Happened at Cube Entertainment?

Cube Entertainment reported revenue of KRW 55.1 billion, operating profit of KRW 900 million, and net income of KRW 2.1 billion in Q2 2025, a significant improvement compared to Q1. The strong performance of its cosmetics business drove the return to profitability.

2. Why the Turnaround?

The success of the ‘Riddleshot’ product in the Japanese market significantly boosted the cosmetics division’s revenue, with the expansion of offline channels also contributing positively. However, the entertainment business continued to struggle, experiencing a significant year-on-year decline in revenue despite overall K-POP market growth.

3. What’s Next for Cube Entertainment?

The future trajectory of Cube Entertainment’s stock price hinges on the recovery of its entertainment division. Increasing revenue through new artist debuts and expanding the activities of existing artists will be crucial. Continued growth in the cosmetics segment is also a key factor. However, increasing debt-to-equity ratio and macroeconomic uncertainties pose potential risks.

4. What Should Investors Do?

While Cube Entertainment holds growth potential, investors should proceed cautiously due to the uncertainties surrounding the entertainment business and financial risks, including the increasing debt-to-equity ratio. Careful monitoring of future earnings, new artist activities, cosmetics business expansion, and improvements in financial structure is essential.