Kakao Pay (377300) investor relations material

Executive summary

• Q1 2026 delivered record consolidated revenue of KRW 300.3 billion, up 42% year-over-year, and operating profit of KRW 32.2 billion, both reaching new highs.

• Financial services revenue surged 82% year-over-year, now comprising 49% of total revenue, reflecting a structural shift in business mix.

• Total payment volume (TPV) reached KRW 50.9 trillion, up 15% year-over-year; revenue TPV also up 15% to KRW 14.6 trillion.

• Daily active users rose 8% year-over-year to 6.69 million, with ARPU up 37% to KRW 12,464, driven by diversified services and data-driven engagement.

• AI and data analytics are central to growth, powering user retention, merchant partnerships, and new product launches.

Financial highlights

• Q1 revenue: KRW 300.3 billion (+42% YoY); operating profit: KRW 32.2 billion (+141% YoY); net income: KRW 34.7 billion (+226% YoY).

• EBITDA was KRW 40.8 billion; OP margin 10.7%, EBITDA margin 13.6%, net income margin 11.6%.

• Standalone revenue up 15% year-over-year to KRW 185.1 billion; standalone OP up 37% to KRW 18.6 billion.

• Operating expense rose 29% year-over-year to KRW 268 billion, with advertising up 24% and personnel up 21%.

• Platform services revenue up 67% YoY, led by digital advertising and telecom brokerage.

Outlook and guidance

• Focus remains on scaling AI-driven services, expanding stablecoin ecosystem, and maintaining double-digit profit margins.

• Plans to enhance insurance sales efficiency and introduce AI-based operational systems.

• Non-payment businesses, especially digital finance, expected to comprise the majority of future revenue.

• Ongoing product and service diversification, including new insurance and investment offerings.

• Continued investment in innovation, user experience, and ESG initiatives to drive sustainable growth.