1. What Happened? Curexo’s Q1 Earnings Shock

Curexo announced its preliminary Q1 2025 earnings on August 12, 2025. The company reported KRW 16.7 billion in revenue (-9%), KRW -0.2 billion in operating profit (-140%), and KRW -0.8 billion in net profit (-260%), significantly below market consensus.

2. Why Did This Happen? Sluggish Medical Robot Business and Market Headwinds

The main culprit behind the earnings miss is the deteriorating profitability of Curexo’s medical robot business. Despite increased R&D investment and new market development costs, revenue declined. The rising KRW/USD exchange rate at the end of Q1 also likely negatively impacted Curexo, an exporting company.

  • Medical Robot Business Slump: Declining sales and widening operating losses significantly impacted overall results.
  • Implant Business Holding Steady: Sales grew by nearly 40%, but it wasn’t enough to offset the medical robot business’s decline.
  • Trade Business Profitability Improvement: Despite declining sales, cost management efforts improved profitability.
  • Exchange Rate Volatility: The rising KRW/USD exchange rate put pressure on the exporting company.

3. What Should Investors Do? Reviewing Investment Strategies

In the short term, downward pressure on the stock price is expected. In the medium to long term, investors should closely monitor earnings trends from Q2 onward, particularly the performance and profitability improvement of the medical robot business in overseas markets. It’s crucial to continuously assess the company’s ability to execute its growth strategy and achieve results.

  • Short-term Investment Strategy: Conservative observation. Be aware of the potential for increased stock price volatility.
  • Medium to Long-term Investment Strategy: Continuously monitor medical robot business performance and profitability improvements, as well as new business strategies.

4. Action Plan for Investors

Avoid hasty investment decisions. Carefully evaluate the company’s future growth potential and risks, and make investment decisions cautiously. It is important to consult with experts and comprehensively analyze various information to formulate an investment strategy.