1. Coweaver’s Q2 2025 Earnings: Key Highlights

Coweaver reported revenue of KRW 14.2 billion (a 72.1% YoY increase), operating loss of KRW 0.6 billion (continued loss, narrowing loss), and net profit of KRW 0.4 billion (turned to profit) in Q2 2025. While revenue growth is positive, profitability improvement remains a challenge.

2. Turnaround Potential? Analyzing Key Positive and Negative Factors

Positive Factors

  • • Consistent revenue growth: From KRW 8.8 billion in Q1 to KRW 14.2 billion in Q2.
  • • Return to net profit: A positive sign, along with a decrease in operating loss.
  • • Pursuing new businesses like quantum cryptography: Expectations for securing future growth engines.

Negative Factors

  • • Continued operating loss: Fundamental profitability improvement is needed.
  • • Credit rating downgrade (A- to BBB-): Concerns about financial soundness.
  • • Decline in stock price and trading volume from April to June: Possibility of weakened investor sentiment.

3. Investment Strategy: Should you invest in Coweaver now?

Coweaver is showing turnaround potential, but caution is advised. In the short term, Q3 earnings announcements and the effects of cost management will influence the stock price. Improvement in operating margin will be particularly crucial. In the long term, the performance of the quantum cryptography business will determine its investment attractiveness.

Investment Considerations

  • • Timing and sustainability of operating profit turnaround
  • • Commercialization and revenue contribution of the quantum cryptography business
  • • Improvement in cash flow, debt ratio, and credit rating

Investment in Coweaver is advisable when visibility of earnings improvement and financial soundness are secured.