1. iCRAFT Q2 Earnings: What Happened?
iCRAFT reported KRW 24.1 billion in revenue, KRW -0.9 billion in operating profit, and KRW 1.6 billion in net profit for Q2 2025. Compared to the previous quarter, sales plummeted by 40%, and operating profit remained in the red. The return to losses after a temporary return to profitability in Q4 2024 is concerning.
2. What Caused the Decline?
The sharp drop in sales could be attributed to seasonal factors or project completions, but the underlying reason is likely the delayed realization of profits in the AI/Cloud business, weakening sales growth momentum. The high exchange rate and interest rates are also estimated to have put pressure on profitability. Further analysis of factors contributing to the decline in profitability, such as increased SG&A expenses, is necessary.
3. What’s Next? Investment Strategies
Downward pressure on the stock price is expected in the short term. The poor Q2 performance could lead to a decline in investor sentiment, and the outlook for Q3 earnings remains unclear. Therefore, ‘sell’ or ‘hold’ is recommended for short-term investors.
In the medium to long term, there is a positive factor: growth in the AI and cloud markets. If iCRAFT successfully targets this market and achieves a turnaround in earnings, there is a possibility of stock price recovery. However, careful observation of actual performance generation is crucial.
4. Investor Action Plan
- Short-term investors: Sell or Hold
- Mid-to-long-term investors: Closely monitor AI/Cloud business performance, cost efficiency, and new order wins