1. HS Ad Q2 Earnings: What Happened?

HS Ad reported KRW 99 billion in revenue, KRW 500 million in operating profit, and a net loss of KRW 600 million for Q2 2025. While revenue increased by 22.5% compared to Q1, both operating and net income remained negative.

2. Analyzing the Underperformance: Why These Results?

Despite the revenue recovery, the main factor hindering profitability seems to be the burden of selling, general, and administrative expenses (SG&A). The SG&A issue, which was a major cause of the Q1 earnings decline, appears to have persisted in Q2. Intensifying competition in the advertising market is also likely contributing to the profitability challenges.

3. Future Outlook and Investment Strategy: What’s Next?

HS Ad is actively pursuing long-term growth drivers by expanding into overseas markets and investing in digital/AI technologies. However, in the short term, improving profitability through cost efficiency is a pressing issue. Investors should closely monitor HS Ad’s cost management capabilities and profitability improvement strategies.

4. Action Plan for Investors

  • Short-term investors: Exercise caution and monitor profitability improvements and cost management efficiency.
  • Long-term investors: Focus on the company’s success in overseas market expansion and securing competitiveness in digital/AI technologies.