1. Q2 Earnings: Surprising Revenue Growth, But…

Carisoft reported KRW 2.3 billion in revenue for Q2 2025, exceeding expectations. However, both operating and net income remained negative, falling short of market forecasts. Sluggish performance in the IP ancillary business was the primary culprit, offsetting growth in content sales.

2. Deteriorating Financial Health: Investor Caution Advised

A sharp increase in debt-to-equity ratio and declining cash reserves raise concerns about Carisoft’s financial health. Managing liquidity risk is crucial at this juncture.

3. New Growth Engines: AI, 3D Animation, Global Expansion

Carisoft is actively investing in future growth drivers, including strengthening its ‘Carrie’ IP-based business, adopting AI technology, enhancing 3D animation production capabilities, expanding into global markets, and broadening its educational offerings. The KRW 2 billion investment in Dove to Rabbit is a part of this strategy.

4. Key Takeaways for Investors: A Cautious Approach

In the short term, investors should be mindful of financial risks and weak profitability. However, the long-term outlook hinges on the success of new business ventures and maximizing IP value. A cautious approach and continuous monitoring are essential. Macroeconomic factors also warrant careful attention.

5. Action Plan: Close Monitoring and a Long-Term Perspective

  • Monitor the performance of new businesses and the execution of IP value maximization strategies.
  • Keep track of macroeconomic variables such as exchange rates and interest rates.
  • Develop an investment strategy that considers both short-term risks and long-term growth potential.