1. Alux Q2 2025 Earnings Analysis: Surprising Revenue Growth, Widening Losses

Alux reported KRW 12.7 billion in revenue for Q2 2025, significantly exceeding the expected KRW 0 billion. However, operating and net losses widened to KRW -3.8 billion and KRW -3.6 billion, respectively, compared to the previous quarter.

2. Reasons for Underperformance: Increased SG&A, R&D Expenses, and New Investments

The widening losses are primarily attributed to increased selling, general, and administrative (SG&A) expenses, research and development (R&D) investments, and new business ventures. While these investments are strategically positioned for long-term growth, the short-term impact on profitability raises concerns for investors.

3. Alux’s Competitive Advantages: Drones, AI EdTech, and Improved Financial Health

Alux maintains a technological edge through in-house FC development and has successfully transitioned to a North America-focused drone export business model. Positive factors include the potential for growth in the AI edtech market, anticipated benefits from government policy support, and improved financial health.

4. Investment Strategy: Wait-and-See Approach, Monitoring for Performance Improvement

While Alux holds long-term growth potential, the Q2 underperformance is expected to put downward pressure on the stock price in the short term. A cautious wait-and-see approach is recommended, carefully observing further earnings releases, cost control measures, and profitability improvement efforts. Closely monitor the performance of key business areas, such as the expansion of the drone business in overseas markets and market share growth in the AI edtech sector.