Kakao Pay (377300) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw TPV reach ₩47.1T (+12% YoY), revenue ₩238.4B (+28% YoY), and operating profit ₩15.8B (+69% QoQ), with financial and platform services as key drivers.

• Net income turned positive at ₩19.1B, rebounding from losses in Q3 2024.

• Financial service revenue surged 72% YoY, platform service grew 69% YoY, and payment service revenue rose 6% YoY, with offline and cross-border payments showing double-digit growth.

• User engagement metrics improved: DAU up 6% YoY to 6.56M, ARPU up 33% YoY to ₩10,103, and ATPU up 43% YoY to 75.

Financial highlights

• Q3 TPV: ₩47.1T (+12% YoY); Revenue TPV: ₩13.4T (+8% YoY).

• Q3 revenue: ₩238.4B (+28% YoY); operating profit: ₩15.8B (+69% QoQ); net profit: ₩19.1B; EBITDA: ₩24.1B.

• Financial service revenue: ₩94.7B (+72% YoY); platform service: +69% YoY; payment service: ₩129.7B (+6% YoY).

• Operating expenses were ₩222.5B (+14.9% YoY, −2.8% QoQ); marketing expense up 44.6% YoY, kept at 10% of revenue.

• Operating margin improved to 6.6%, net margin at 8.0%, and EBITDA margin at 10.1%.

Outlook and guidance

• Platform and financial services expected to sustain double-digit growth in 2026, leveraging data-driven ads, card recommendations, and digital channels.

• Securities business aims to expand active customer pool and maintain high growth via new account openings, conversion, and AI-powered features.

• Insurance business targets higher growth in 2026 with new products, enhanced offerings, and expanded direct counseling channels.

• User base and ARPU expected to continue rising, supporting topline expansion.