FSN Achieves Record Quarterly Performance, Turns Net Profit Positive

FSN, a KOSDAQ-listed company, announced record-breaking results for the second quarter of 2026. The company reported sales of 76.7 billion won and an operating profit of 12 billion won, marking a 6.4% and 26.0% increase respectively compared to the same period last year. This performance highlights a significant improvement in profitability, with an operating profit margin of 15.6% and a net profit of 4.98 billion won, turning from a deficit in the previous quarter.

A key aspect of this achievement is the shift in profit sources. Unlike the previous year, where non-operating income significantly contributed to net profit, approximately 92% of FSN's net profit in the second quarter of 2026 was generated from its core business operations. The company also saw its net profit attributable to shareholders turn positive, with continuing operating profit increasing by about 4.2 times year-on-year.

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This performance is the result of continuously pursuing business transformation and profit-oriented management.

FSN attributes the lower net profit compared to operating profit to accounting losses from derivative valuations, including a 6.16 billion won loss related to the increased corporate value of its subsidiary, Boosters. However, the company has proactively addressed these factors and reduced outstanding convertible bonds, expecting a positive impact on future net profit trends. The core advertising business achieved profitability through AI-driven marketing strategies, while the 'Daedamo' community platform showed stable profits with double-digit growth.

Looking ahead to the second half of the year, FSN aims to expand its high-value business segments. This includes launching the K-beauty brand 'Gifeen,' collaborating with 'Lululipeach,' and entering the Asian market with the fashion brand 'Frontline.' The planned acquisition of PureBio, which holds original patents, is expected to establish an integrated business system encompassing beauty, fashion, and healthcare. FSN expressed confidence in continuing its performance improvement trend by consistently expanding its high-profit business models.

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We will continue to expand high-profit business models and maintain our performance improvement trend in the second half.