1. Fasoo Q2 Earnings: Key Highlights

Fasoo reported revenue of KRW 10.7 billion, operating loss of KRW 0.9 billion, and net loss of KRW 1.2 billion in Q2 2025. While revenue increased compared to Q1, profitability did not improve. Year-over-year, revenue, operating income, and net income all decreased significantly.

  • Revenue: KRW 10.7 billion (+27% QoQ)
  • Operating Income: KRW -0.9 billion (Loss narrowed QoQ)
  • Net Income: KRW -1.2 billion (Loss narrowed QoQ)

2. Reasons for Underperformance: A Confluence of Factors

This underperformance is attributed to a combination of factors, including seasonal factors, one-off costs (investment in new AI businesses, acquisition-related expenses for Paros Networks), and exchange rate fluctuations. The continued high cost burden is a concern. Further analysis is needed to determine if structural issues exist.

3. External Environment Analysis: Opportunities and Threats

While high interest rates in the US could dampen investor sentiment, the defensive nature of the information security industry is a positive for Fasoo. The rising KRW/USD exchange rate could negatively impact export sales. However, the domestic interest rate cut and falling bond yields in Korea are positive factors.

4. Investor Action Plan: A Long-Term Perspective

While investor sentiment may be subdued in the short term, investors should focus on the long-term growth potential of the data security market and Fasoo’s new AI-based businesses. Careful monitoring of future earnings trends and the performance of new businesses, along with analysis of exchange rate fluctuations and cost burdens, is crucial for making investment decisions.