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NAVER 2Q26 Earnings Results 2026.8.7
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The financial information included in this document are earnings results based on K -IFRS. This document is provided for the convenience of investors, and the external review of our financial results are yet to be completed; Therefore, certain parts of this document may be subject to change upon completion of such review. The Company does not make any representation or accept any liability, As to the accuracy or completeness of the financial and operational results stated herein, And nothing contained herein is, or shall be relied upon, as a promise or representation, whether as to the past or the futur e. This document shall not be utilized for any legal purposes in regards to any investor’s investment results, and the Company hereby expressly disclaims any and all liability resulting from any investor’s reliance on the information co ntained herein. This document only speaks of the information as of the date such is made, and the Company is not responsible for providing updates contained in this document in light of new information or future eve nts. Disclaimer
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• Revenue grew 16.2% YoY led by solid growth in core business and growth acceleration in C2C • Operating profit came in flat YoY as acquisition of computing assets, contents and data led rise in cost Earnings summary bn KRW 2Q25 3Q25 4Q25 1Q26 2Q26 Y/Y Q/Q Revenue1) 2,915.1 3,138.1 3,195.1 3,241.1 3,388.8 16.2% 4.6% Naver platform 1,693.1 1,816.6 1,850.3 1,839.8 1,902.2 12.3% 3.4% Ads 1,346.6 1,398.1 1,415.3 1,394.5 1,447.2 7.5% 3.8% Services 346.6 418.6 434.9 445.3 455.0 31.3% 2.2% Financial platform 405.6 427.3 448.6 459.7 470.7 16.0% 2.4% Global opportunities 816.4 894.1 896.2 941.6 1,015.9 24.4% 7.9% C2C 227.5 250.6 285.7 351.1 397.9 74.9% 13.3% Contents 462.1 498.2 444.9 440.1 464.3 0.5% 5.5% Enterprise 126.7 145.3 165.6 150.5 153.7 21.3% 2.2% Operating expenses 2,393.5 2,567.4 2,584.4 2,699.3 2,868.4 19.8% 6.3% Operating profit2) 521.6 570.6 610.6 541.8 520.3 -0.2% -4.0% Operating margin (%) 17.9% 18.2% 19.1% 16.7% 15.4% -2.5%p -1.4%p Net profit 497.4 734.7 163.0 291.0 704.3 41.6% 142.0% Net margin (%) 17.1% 23.4% 5.1% 9.0% 20.8% 3.7%p 11.8%p 1) Excluding effects of Wallapop inclusion, revenue grew YoY 14.5%, QoQ 4.1% 2) Excluding effects of Wallapop inclusion, change in depreciation schedules and other one-off factors, operating profit grew YoY 0.9%
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13.9% 12.4% 17.9% 10.1% 14.7% 12.3% Naver platform YoY 1,276.2 1,346.6 1,398.1 1,415.3 1,394.5 1,447.2 328.5 346.6 418.6 434.9 445.3 455.0 1,604.7 1,693.1 1,816.6 1,850.3 1,839.8 1,902.2 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Ads Services (bn KRW) Naver platform ads, services Quarterly revenue 2Q26 YoY 12.3%, QoQ 3.4% Ads YoY 7.5%, QoQ 3.8% ServicesYoY 31.3%, QoQ 2.2% • Naver platform revenue grew 12.3% YoY • [Ads] AI Tab MAU reached 10M; AI Briefing ad’s high conversion efficiency showcased tangible agentic AI results • [Services] Smartstore GMV growth accelerated to 15.5% YoY helped by strengthening of app, membership and delivery • Logistics initiatives in 2H to expand N-Delivery, with investments in data-driven logistics building the foundation for AI commerce
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386.7 405.6 427.3 448.6 459.7 470.7 19.6 20.8 22.7 23.0 24.2 25.2 0.0 100.0 200.0 300.0 400.0 500.0 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 0.0 5.0 10.0 15.0 20.0 25.0 Financial platform TPV Financial platform payments, fintech services 2Q26 YoY 16.0%, QoQ 2.4% • 2Q Total Payment Value(TPV) grew 21.0% YoY to 25.2tn KRW helped by Smartstore growth and continued expansion into 3rd party ecosystem • Non-captive TPV grew 26.2% YoY to14.1tn KRW • ‘Npay Connect’ installations to drive entry into an AI platform business connecting merchant offline data with the Naver ecosystem • Enhancingagentic AI experience via online-offline data integration; plans to unlock new monetization opportunities in payment, ads, merchant solutions, and finance Quarterly revenue tn KRW(bn KRW, tn KRW)
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2Q26 YoY 24.4%, QoQ 7.9%1) C2C YoY 74.9%, QoQ 13.3%2) Contents YoY 0.5%, QoQ 5.5% Enterprise YoY 21.3%, QoQ 2.2% • [C2C] Poshmark growth accelerated helped by service and organization revamp; Soda growth led by trading cards • [Contents] Webtoon to focus on expanding user base via content expansion including new AI services • [Enterprise] AI B2B growth continues, with public sector contract wins including participation in the national AI datacenter SPC; sovereign AI business scales up via Saudi national standard adoption of digital twin platform and AI factory entry Global opportunities c2c, contents, enterprise 222.7 227.5 250.6 285.7 351.1 397.9 446.2 462.1 498.2 444.9 440.1 464.3 126.6 126.7 145.3 165.6 150.5 153.7 795.4 816.4 894.1 896.2 941.6 1015.9 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 C2C Contents Enterprise 1) Excluding effects of Wallapop, global opportunities grew YoY 18.1%, QoQ 6.4% 2) Excluding effects of Wallapop, c2c grew YoY 52.1%, QoQ 9.8% Quarterly revenue (bn KRW)
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Operating expenses and profit • Development & operations expense grew 15.2% YoY on consolidation of Wallapop • Partner expense grew 22.0% YoY on investments into Npay Connect terminal and World Cup content rights • Infrastructure expense rose 11.2% YoY due to the change in depreciation period despite increased acquisition of computing assets (bn KRW) 2Q25 3Q25 4Q25 1Q26 2Q26 Y/Y Q/Q Operating expenses 2,393.5 2,567.4 2,584.4 2,699.3 2,868.4 19.8% 6.3% Development & operations 683.1 732.7 743.7 748.9 786.9 15.2% 5.1% ┖ Labor cost 583.3 632.2 635.7 649.8 672.2 15.2% 3.5% ┖ Others 99.8 100.5 108.0 99.1 114.6 14.9% 15.6% Partner 1,030.2 1,114.1 1,129.8 1,188.0 1,256.8 22.0% 5.8% Infrastructure 197.7 218.6 205.2 250.8 219.8 11.2% -12.3% Marketing 482.4 502.0 505.7 511.7 604.9 25.4% 18.2% Operating profit 521.6 570.6 610.6 541.8 520.3 -0.2% -4.0% Operating margin (%) 17.9% 18.2% 19.1% 16.7% 15.4% -2.5%p -1.4%p Net profit 497.4 734.7 163.0 291.0 704.3 41.6% 142.0% Net margin (%) 17.1% 23.4% 5.1% 9.0% 20.8% 3.7%p 11.8%p * Depreciation period for computing assets such as GPU and CPU was extended from 5 to 6 years to reflect actual useful life; approximately 100bn KRW annual cost deferral effect
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1,604.7 1,693.1 1,816.6 1,850.3 1,839.8 1,902.2 34.2% 32.7% 33.6% 33.3% 28.8% 28.5% -45.0% -35.0% -25.0% -15.0% -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% 1,350.0 1,450.0 1,550.0 1,650.0 1,750.0 1,850.0 1,950.0 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Revenue Segment margin(%) 795.4 816.4 894.1 896.2 941.6 1,015.9 (74.2) (65.0) (68.1) (31.2) (14.8) (35.6) -300.0 -100.0 100.0 300.0 500.0 700.0 900.0 1,100.0 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Revenue Segment Profit/Loss 386.7 405.6 427.3 448.6 459.7 470.7 8.0% 7.9% 6.6% 5.6% 5.8% 3.0% -10.0% -5.0% 0.0% 5.0% 10.0% 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Revenue Segment margin(%) P&L by segment Naver platform Global opportunities* Financial platform * Global opportunities : c2c, contents, enterprise (bn KRW, %)
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Cash & borrowings, consolidated FCF, direct and indirect investments (bn KRW) Cash and cash equivalents + short-term financial instruments (bn KRW) 4Q25 1Q26 2Q26 Borrowings & debentures 2,985.7 3,617.8 3,894.6 Short-term borrowings 1,729.3 2,497.6 1,069.4 Long-term borrowings 1,256.4 1,120.2 2,825.2 Debentures 382.2 218.4 1,718.0 Borrowings 874.1 901.8 1,107.1 Borrowings / Debentures (consolidated) (bn KRW) 4Q25 1Q26 2Q26 NAVER(separate) 3,287.3 3,056.5 2,899.0 NAVER(consolidated) 8,320.9 8,357.0 8,401,4 Net cash1) 2,876.8 2,337.3 1,825.7 Cash & borrowings Consolidated FCF 2), direct and indirect investments 1) Net cash: NAVER consolidated C&CE+ short-term financial instruments – NAVER FINANCIAL cash - borrowings 2) Consolidated FCF: Consolidated operating income + non-cash expenses - CapEx – taxes paid 3) Includes 1Q26 Wallapop acquisition cost -82 -249 -107 -1185 -273 197 202 131 320 46 2Q25 3Q25 4Q25 1Q26 2Q26 Adjusted EBITDA CapEx Taxed Paid Consolidated FCF Direct & Indirect Investments (Incl. M&A) Cancellation of 3.1% of existing treasury shares on August 3rd (4,901,094 shares, 1.017tn KRW as of Aug 3rd closing price) 3)
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Appendix. Net profit • 2Q net profit increased 41.6% YoY on higher equity method earnings and gains on financial instruments (bn KRW) 2Q25 3Q25 4Q25 1Q26 2Q26 Y/Y Q/Q Operating profit 521.6 570.6 610.6 541.8 520.3 -0.2% -4.0% Operating margin (%) 17.9% 18.2% 19.1% 16.7% 15.4% -2.5%p -1.4%p Non-operating profit/loss 162.1 286.2 -311.1 -148.3 381.7 135.5% 357.5% Equity method gain/loss 161.2 276.2 60.5 -131.5 238.7 48.1% 281.4% Financial profit/loss -67.9 65.7 160.8 110.4 153.6 326.4% 39.2% Other profit/loss 68.7 -55.7 -532.4 -127.1 -10.5 n/a 91.7% Pre-tax income 683.6 856.9 299.5 393.5 902.0 32.0% 129.2% Tax 186.3 122.2 136.5 102.5 197.8 6.2% 93.0% Net profit 497.4 734.7 163.0 291.0 704.3 41.6% 142.0% Net margin (%) 17.1% 23.4% 5.1% 9.0% 20.8% 3.7%p 11.8%p
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10 NAVER AI Factory Phase1 200MW Business Structure (Plan) • As a result of NVIDIA’s investment into NAVER, NAVER to consolidate AI Factory Operating Co. with 100% stake • Brookfield to invest up to $9B into SPV and hold majority stake in SPV NVIDIA Datacenter Computing expense ($ xper MW ) NAVER NVIDIA 100% stake $1B investment AI Factory Operating Co. SPV (GPU & datacenter ownership) Max $9B investment Off-takers (Customers) Computing revenue ($ x + a per MW ) Full stack computing service Investor (Brookfield*) Computing power GPU purchase Minority stake (if needed) Site acquisition / Lease * Preferred negotiation partner
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Thank You