1. STX H1 2025 Earnings: A Significant Miss

STX’s preliminary Q2 2025 earnings missed market expectations across the board. Revenue came in at ₩156.5 billion, a 14% drop, while operating income plunged into negative territory at -₩11.1 billion. Net income also widened its losses to -₩18.3 billion.

2. Analyzing the Drivers of Decline

This downturn is attributed to a combination of factors, including declining revenue in investment and trading segments, operating losses across all business units, a decrease in equity, and soaring debt ratios. The alarmingly high debt-to-equity ratio, at 520.9% on a consolidated basis and a staggering 1,944.3% on a standalone basis, paints a grim picture of the company’s financial health.

3. Delisting Threat: Trading Halt and Review Pending

Following accounting irregularities, trading in STX shares has been halted since July 2nd, with a decision on delisting expected on August 22nd. Delisting would result in significant losses for investors.

4. Investor Action Plan

Investing in STX is currently extremely risky. Given the potential for delisting, investors face the risk of a total loss of principal. Existing investors are strongly advised to divest immediately, while potential investors should avoid STX altogether. Close monitoring of the situation is crucial, and any future investment decisions should be made with extreme caution. Even if the company avoids delisting, careful consideration should be given to its ability to improve earnings and restructure its finances.