1. What Happened? : Analyzing the Earnings Shock

Digital Daesung reported revenue of KRW 119.7 billion and operating profit of KRW 15.2 billion in Q2 2025, representing a 45% and 35.6% decrease year-over-year, respectively. The decline was primarily driven by a sharp drop in sales of online lectures and mock tests in the high school education segment.

2. Why Did This Happen? : Reasons for the Decline

The main reasons for this decline are the slowdown in the online education market and increased competition after the pandemic. Furthermore, the structural issue of declining student population also negatively impacted performance. The high school business segment experienced the most significant decline, while the elementary and middle school segments also saw decreasing sales.

3. What’s Next? : Future Outlook and Investment Strategies

A short-term rebound for Digital Daesung is unlikely. The future stock price will largely depend on business restructuring, the success of new businesses (boarding schools), and the recovery of the education market. Strengthening reading and discussion education in the elementary and middle school segments could be a positive momentum, but uncertainty remains high.

4. What Should Investors Do? : Action Plan

Investors should be fully aware of the risks associated with Digital Daesung’s earnings decline and invest cautiously. It’s crucial to thoroughly examine the company’s business restructuring efforts and the possibility of earnings recovery and to make investment decisions from a long-term perspective.