Slides
Page 1
Q3 2026 Earnings Results 2026. 11. 5 | Kakao Investor Relations © Kakao Corp.
Page 2
Financial information contained in this document is based on consolidated K-IFRS that have not been reviewed by an independent auditor. Therefore, the information and financial data of Kakao and its subsidiaries (the “Company”, or “Kakao”) contained in this document are subject to change upon an independent auditor’s review. The Company does not make any representation or accept liability, as to the accuracy or completeness of the information contained in this material. The format and contents of this document are subject to change for future filings and reports. Kakao is not liable for providing future updates on all figures included in this document. Therefore, this presentation contained herein should not be utilized for any legal purposes in regards to investors’ investment results. The Company hereby expressly disclaims any and all liability for any loss or damage resulting from the investors’ reliance on the information contained herein. © Kakao Corp. Disclaimer
Page 3
kakao 3Q26 Earnings Release 3 Revenue Revenue +6% YoY / -1% QoQ Q3 MIX : Platform 59%, Content 41% Revenue 903 842 789 868 852 1,060 1,200 1,153 1,230 1,235 3Q25 4Q25 1Q26 2Q26 3Q26 Platform Content (in bn KRW) 1,962 2,042 (54%) (46%) 1,942 (59%) (41%) (59%) (41%) (59%) (41%) 2,098 (59%) (41%) 2,087 Platform Talk Biz Advertising and Subscription : Talk DA (Bizboard / Non-Bizboard), Business Messaging, Network Ads Subscription and Others Commerce : Talk Gift, Talk Store, Kakao Friends Online Platform Others Mobility Pay Enterprise Other Consolidated Subsidiaries Content Story Piccoma Entertainment Music SM Entertainment Melon Digital Music / Album Distribution Music Production Media Video Production Talent Agency
Page 4
kakao 3Q26 Earnings Release 4 Content (in bn KRW)(in bn KRW) Platform Revenue 3Q26 +17% YoY, Flat QoQ 3Q26 -6% YoY, -2% QoQ 53% 54% 55% 52% 51% 47% 46% 45% 48% 49% 3Q25 4Q25 1Q26 2Q26 3Q26 Talk Biz Platform Others 63% 62% 62% 64% 60% 27% 26% 27% 24% 24% 11% 11% 12% 11% 17% 3Q25 4Q25 1Q26 2Q26 3Q26 Music Story Media 1,060 1,200 903 842 789 1,153 1,230 868 1,235 852
Page 5
kakao 3Q26 Earnings Release 5 3Q25 4Q25 1Q26 2Q26 3Q26 3Q25 4Q25 1Q26 2Q26 3Q26 Advertising & Subscription ▪ ① Business Messaging +7% YoY, -4% QoQ (YoY) Growth temporarily slowed due to a high base despite solid advertiser demand. Double-digit growth expected to resume in Q4 (QoQ) Seasonal slowdown ② Talk DA +35% YoY, -1% QoQ (YoY) New advertiser acquisition through feed ads and increased spending driven by product enhancements Commerce 3Q26 +16% YoY, -1% QoQ 3Q26 +11% YoY, -2% QoQ Platform│Talk Biz (in bn KRW) (in bn KRW) ▪ Talk Biz Commerce GMV1) : KRW 2.3tn, +13% YoY, +7% QoQ ▪ Talk Gift GMV : +13% YoY, +8% QoQ ▪ Talk Store GMV : +8% YoY, +1% QoQ ▪ (YoY/QoQ) Solid results driven by shift in Chuseok (Q4→Q3) and self-purchase growth. Talk Gift posted record monthly GMV in September, while promotion revenue remained stable QoQ. ▪ Self-purchases represented ~30% of total GMV 353 400 209 253 360 270 400 243 391 241 1) GMV scope revised from 3Q26 (Talk Gift, Talk Store, Zigzag, Grip → Talk Gift, Talk Store)
Page 6
kakao 3Q26 Earnings Release 6 3Q25 4Q25 1Q26 2Q26 3Q26 Platform Others 3Q26 +21% YoY, +3% QoQ ▪ Mobility : Continued YoY revenue growth supported by steady core business revenue and strong performance in new businesses ▪ Pay : Continued YoY growth in revenue and operating profit, supported by expansion in both financial and payment services Platform│Platform Others 498 546 523 587 (in bn KRW) 602
Page 7
kakao 3Q26 Earnings Release 7 3Q25 4Q25 1Q26 2Q26 3Q26 Piccoma 3Q26 -15% YoY, -5% QoQ Content│Story ▪ (YoY/QoQ) Continued slowdown in the webtoon and web novel industries Entertainment 3Q26 -20% YoY, -4% QoQ 3Q25 4Q25 1Q26 2Q26 3Q26 ▪ (in JPY) GMV -10% YoY, -5% QoQ ▪ (in JPY) Revenue -13% YoY, Flat QoQ ▪ Maintained a focus on profitability while expanding IP monetization opportunities 93 89 148 132 133 78 132 78 (in bn KRW) (in bn KRW) 126 75
Page 8
kakao 3Q26 Earnings Release 8 3Q25 4Q25 1Q26 2Q26 3Q26 Content│Music, Media 3Q26 -10% YoY, -9% QoQ ▪ (YoY/QoQ) Fewer album releases and large-scale concerts ▪ Continued diversification of IP revenue streams beyond concerts, including merchandise and licensing Music 565 526 485 558 508 (in bn KRW) Media 3Q25 4Q25 1Q26 2Q26 3Q26 96 96 3Q26 +49% YoY, +44% QoQ ▪ (YoY/QoQ) Higher revenue recognition based on production progress 92 99 143 (in bn KRW)
Page 9
kakao 3Q26 Earnings Release 9 (in bn KRW) 3Q25 2Q26 3Q26 YoY QoQ Revenue 1,962 2,098 2,087 6% -1% Platform 1,060 1,230 1,235 17% 0.4% Talk Biz 562 643 633 13% -2% Platform Others 498 587 602 21% 3% Content 903 868 852 -6% -2% Story 241 211 201 -17% -5% Music 565 558 508 -10% -9% Media 96 99 143 49% 44% Operating Expenses 1,738 1,821 1,846 6% 1% Operating Profit 224 277 240 7% -13% Operating Profit Margin 11.4% 13.2% 11.5% +0.1%pt -1.7%pt Net Profit 193 18 178 -8% 888% Controlling Interests 125 16 159 27% 873% Non-controlling Interests 68 2 19 -72% 1,042% Net Profit Margin 9.8% 0.9% 8.5% -1.3%pt +7.7%pt Earnings Summary
Page 10
kakao 3Q26 Earnings Release 10 Operating Expenses (in bn KRW) 3Q25 2Q26 3Q26 YoY QoQ Operating Expenses 1,738 1,821 1,846 6% 1% Labor 429 448 446 4% -0.4% Cost of Revenue 698 746 790 13% 6% Outsourcing & Infrastructure 245 223 241 -2% 8% Marketing 92 97 90 -2% -7% Depreciation & Amortization 195 192 189 -3% -1% Misc. 80 116 91 14% -22% 3Q Analysis (YoY) One-off performance bonuses at certain subsidiaries (QoQ) Maintained conservative hiring ▪ Labor (YoY/QoQ) Higher costs driven by media revenue growth and expansion of first-party commerce▪ Cost of Revenue (YoY) Lower outsourcing costs due to fewer large-scale concerts (QoQ) Higher infrastructure demand for AI model training and service operations ▪ Outsourcing & Infrastructure (YoY/QoQ) Efficient marketing spend in the Content segment▪ Marketing (YoY/QoQ) Cost efficiencies from greater in-house data center use and lower content-related amortization▪ Depreciation & Amortization
Page 11
kakao 3Q26 Earnings Release 11 3Q25 4Q25 1Q26 2Q26 3Q26 Net Profit NPM 3Q26 +7% YoY, -13% QoQ Operating Profit & Margin Net Income & Margin 3Q26 -8% YoY, +888% QoQ Profits 1) 4Q25: Impairment losses of goodwill (128.3bn) and intangible asset (104.9bn) 2) 2Q26: Loss from discontinued operations (177.9bn) and income tax expense (167.9bn) due to deconsolidation and subsidiary stake disposals (in bn KRW) (in bn KRW) 1) 1) Kakao (Separate): Operating profit excluding AI services 2) Subsidiaries: All businesses ex. Kakao (Separate) and AI; incl. internal adj. 3) AI: AI Services within Kakao (Separate) 2) 3) 193 227 -47 1) 18 178 9.8% 11.7% 0.9% 8.5% 2) 146 174 174 183 182 123 88 92 151 122 -46 -46 -55 -57 -64 11.4% 10.6% 10.9% 13.2% 11.5% 3Q25 4Q25 1Q26 2Q26 3Q26 Kakao (Separate) Subsidiaries AI OPM 224 216 211 277 240
Page 12
kakao 3Q26 Earnings Release 12 CapEx 3Q26 +2.8bn YoY, +1.9bn QoQ Disciplined investment with limited YoY/QoQ increases Employees 3Q26 -2,152 YoY, -9 QoQ Employees / CapEx 1) PP&E: Construction in progress, servers, network equipment, etc. 2) Intangible assets: Goodwill, video production, distribution rights, etc. 144 157 92 161 140 39 36 26 23 46 9% 9% 6% 9% 9% 3Q25 4Q25 1Q26 2Q26 3Q26 PP&E Intangible Capex to Revenue 3,942 3,922 3,975 3,918 3,883 12,247 11,934 10,115 10,128 10,154 3Q25 4Q25 1Q26 2Q26 3Q26 Kakao Subsidiaries 16,189 (# of people) (in bn KRW) 15,856 183 14,090 193 14,046 118 1) Headcount based on key consolidated subsidiaries 2) Kakao Games deconsolidated 184 1) 1) 2) 14,037 186 2) YoY/QoQ Decline due to subsidiary divestitures and conservative hiring
Page 13
kakao 3Q26 Earnings Release 13 ESG Activities Hosted 'Kakao AI Sail Summit 26’ ▪ Shared key group AX cases in autonomous driving, finance and insurance with regional AI talent ▪ Presented a virtuous-cycle growth model linking AI talent and startups to vitalize regional AI ecosystem Published AI Ethics Guide for AI Agents ▪ Released AI ethics guide 'SPIRIT': Safety, Privacy, Inclusivity, Responsibility, Individual Autonomy, Transparency & Trustworthiness ▪ Classified agent risks into five areas and added an AI ethics checklist, strengthening risk management across the AI service lifecycle ▪ Extended in-house data center operating know-how to leased centers, cutting cooling-power costs by 23% ▪ Combined LG CNS's stable operations and expertise with AI-based control to improve efficiency and reduce energy use Expanded Energy Savings through Data Center Optimization
Page 14
kakao 3Q26 Earnings Release 14 KakaoTalk MAU Maintaining stable domestic MAU approaching 50 million Korea 48,933 48,954 49,099 49,298 49,468 49,500 49,575 49,631 49,677 Global 54,198 54,048 54,080 54,286 54,500 54,501 54,683 55,346 54,944 Average of monthly MAUs. Global includes domestic MAUs. (in thousands) 48,933 48,954 49,099 49,298 49,468 49,500 49,575 49,631 49,677 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26
Page 15
Thank You © Kakao Corp.