1. Thinkware Q2 2025: What Happened?

Thinkware reported KRW 138.4 billion in revenue, KRW 9 billion in operating profit, and KRW 2.8 billion in net profit for Q2 2025, marking a return to profitability. Although revenue slightly decreased compared to Q1, operating and net profits showed significant improvement. This is attributed to the steady growth of the black box business and a temporary improvement in the environmental appliance division’s performance in Q2.

2. Behind the Turnaround: Key Business Analysis

Black Box Business: Maintains a strong market leadership position in Korea, with positive signs from expanding overseas through deals like the exclusive BMW supply contract. Environmental Appliance Business: Showing a clear decline in sales following the pandemic boom. The Q2 improvement might be temporary, and continued recovery needs close monitoring. Map/Platform Business: Targeting the future mobility market, this segment holds growth potential, albeit with a currently small scale.

3. Key Investor Checkpoints

  • Environmental Appliance Recovery: Verify the sustainability of Q2’s performance improvement.
  • Macroeconomic Factors: Evaluate the company’s strategy for navigating exchange rate fluctuations, interest rate changes, and raw material price volatility.
  • Future Growth Drivers: Assess the growth potential of new businesses, including the map/platform segment.

4. Should You Invest in Thinkware?

While the Q2 earnings improvement is positive, investors should consider the risks associated with the uncertain performance of the environmental appliance business and macroeconomic factors. Continued monitoring of the black box business stability and future growth drivers is crucial for informed investment decisions.