1. DearU Q2 Earnings: Key Highlights

DearU announced its preliminary Q2 2025 earnings on August 5, 2025. Revenue came in at ₩20.2 billion, missing market expectations by 5%, while operating profit was ₩7.4 billion, a 6% miss. Most concerningly, the company reported a net loss of ₩-6.6 billion, a significant downturn and a massive 206% deviation from consensus estimates.

2. Reasons for the Earnings Miss

Several factors likely contributed to DearU’s poor performance. Increased competition from rival platforms, rising marketing costs, and the previously highlighted risk of foreign exchange fluctuations likely played a role in the earnings decline.

3. DearU’s Outlook and Investment Strategies

In the short term, downward pressure on the stock price is expected to continue. However, the growth of the K-POP fandom market and DearU’s global expansion potential remain attractive. Investors should focus on the company’s response strategy and long-term growth potential rather than short-term price fluctuations. Monitoring management’s efforts to improve cost efficiency, ARPU, secure new IPs, and manage FX volatility will be crucial.

4. Investor Action Plan

  • Short-term investors: Caution is advised. Closely monitor the company’s response strategy and market reactions.
  • Long-term investors: If you believe in the growth potential of the K-POP market, a buy-the-dip strategy could be considered. However, continuous monitoring of the company’s fundamentals is essential.