1. What Happened? FourbyFour’s H1 2025 Performance

FourbyFour reported revenue of KRW 9.1 billion in H1 2025, showing year-over-year growth, but the annual growth trend has slowed significantly. The decline in revenue from the AI solutions segment is a primary factor in the weakening growth momentum. Operating income was KRW 0, and net income was KRW -300 million, highlighting persistent profitability issues.

2. Why Did This Happen? Reasons for Slowing Growth and Profitability Decline

The underperformance of the AI solutions segment is attributed to early-stage challenges and intensifying market competition. While the content creation segment experienced growth, its declining contribution to overall revenue impacted the overall growth rate. The continued operating losses stem from the poor performance of the AI solutions division and potential impairment losses related to the uncertain recovery of receivables from ‘Project C’.

3. What’s Next? Outlook and Investment Strategies

FourbyFour’s future stock performance hinges on the successful commercialization of its AI solutions, improvement in profitability, and the successful launch of new businesses. While technological competitiveness and improving debt-to-equity ratio are positive factors, tangible performance improvements are crucial for sustained growth. In the short term, investor sentiment could be negatively impacted, and the realization of the company’s long-term growth potential remains uncertain.

4. What Should Investors Do? Key Investment Takeaways

Investors should closely monitor FourbyFour’s upcoming earnings announcements and the execution of its business strategies. Pay close attention to the performance of the AI solutions segment, the recovery of receivables, and the growth potential of new businesses. A long-term investment perspective is recommended, avoiding impulsive reactions to short-term stock price fluctuations.