1. NAVER Q2 2025 Earnings: Key Highlights

NAVER reported revenue of KRW 29.15 trillion, operating profit of KRW 5.215 trillion, and net income of KRW 4.973 trillion for Q2 2025. Notably, net income significantly surpassed expectations by 17%, delivering a positive earnings surprise.

2. Key Growth Drivers: Commerce, Fintech, and AI

The core drivers of this strong performance are the high growth rates in the commerce and fintech sectors, at 15.9% and 11.4% respectively. Furthermore, the company’s increased investment in AI technology, centered around its HyperCLOVA X platform, positions it for future growth.

  • Commerce: Successful strategies like Brand Store and Shopping Live drove growth.
  • Fintech: Expansion of payment services and increased merchant adoption fueled results.
  • AI: Investment in HyperCLOVA X is expected to drive new services and enhance competitiveness.

3. Challenges: Slowing Search Platform Growth and Increased Competition

Slowing growth in the content and search platform segments presents a challenge. Despite the introduction of AI-powered feed ads, increased competition poses a risk to growth. The intensifying competition in the commerce market also requires continuous monitoring.

4. Investment Strategy: Maintain Buy Rating, Ongoing Monitoring is Crucial

NAVER’s Q2 results demonstrate solid fundamentals and future growth potential. We maintain a ‘Buy’ rating, however, continuous monitoring of risk factors such as slowing search platform growth, intensified competition, and macroeconomic uncertainties is essential. Investors should closely watch NAVER’s AI strategy execution and global market expansion while adjusting investment strategies accordingly.