1. What Happened? : Q2 Earnings Breakdown

Megastudy Education’s Q2 2025 revenue reached ₩200.9 billion, and operating profit was ₩32.6 billion, both missing market expectations. However, net profit significantly surpassed expectations, reaching ₩25.7 billion.

2. Why These Results? : Analyzing the Drivers

Revenue and Operating Profit Decline: The continued decline in sales within the high school division is identified as the primary cause. Additional factors impacting Q2 performance cannot be ruled out. Net Profit Surge: This is attributed to unexpected positive factors such as increased non-operating income, reduced corporate tax expenses, asset disposals, and the effects of business restructuring.

  • Segment Analysis: While the high school division struggled, the elementary, middle school, and university segments showed growth. The job preparation segment declined due to business transfers.
  • Financial Health: The debt-to-equity ratio remains stable, but the decreasing trend in cash and cash equivalents requires attention.

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

Positive Factors: Strong net profit, restructuring effects, and potential growth in new businesses. Negative Factors: Continued struggles in the core business and decreasing cash and cash equivalents.

4. What Should Investors Do? : Action Plan

  • Monitor the recovery of the core business segment.
  • Assess the performance and synergy effects of new businesses.
  • Evaluate cash and cash equivalent management strategies.
  • Consider the impact of macroeconomic changes.

Focus on the long-term growth strategy and portfolio changes rather than short-term fluctuations.