PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
VT continues to expand revenue in new markets such as Europe and the Middle East on the back of its Reedle Shot and PDRN lines, but its operating margin has stayed in a clearly lower range since the third quarter of 2025 due to expanded marketing spending.
Second-quarter 2026 revenue rose year over year to KRW 131.7 billion, but the operating margin fell sharply to 8.1% from 26.1% in the second quarter of 2025.
Revenue from Europe and the Middle East grew 454% and 546% year over year, respectively, showing early signs of new-market expansion feeding into results.
The full-year operating margin fell from 25.7% in 2024 to 19.0% in 2025, and quarterly margins have settled in the low-teens to single digits since the third quarter of 2025.
The company announced a plan in August 2026 to buy back and fully cancel KRW 15.0 billion worth of treasury shares.
Owners' net income has fluctuated more widely than operating income on a quarterly basis, suggesting periods influenced by one-off items.
VT is a cosmetics company that manufactures and distributes skincare-focused basic cosmetics, built around its Reedle Shot line, which applies its microneedle technology called Cica Reedle, and its PDRN (polydeoxyribonucleotide) product family.
The beauty segment accounted for 94% of total revenue in the second quarter of 2026, up slightly from 93% a year earlier, and the company also holds non-core subsidiaries including laminating machine maker GMP, housing developer GMP Global, and bio-products unit VT Bio.
Domestic channels consist of Daiso, Olive Young, home shopping (CJ ONSTYLE), and duty-free stores, with Daiso's PDRN radiance and body care lines and Olive Young's Pokemon IP collaboration and sun-care products driving recent growth.
Japan remains the largest overseas market; in the second quarter of 2026, regional revenue mix was Japan 26%, the United States 11%, Russia/CIS 7%, Europe 6%, and Greater China 3%.
In Japan, the number of offline stores carrying VT products at chains such as Loft and PLAZA expanded to about 18,000, including roughly 11,000 stores dedicated to Reedle Shot, where the Cica Daily Soothing Mask and Reedle Shot have maintained top rankings on major channels.
In the United States, the company newly supplied PDRN duo packs to Costco and is expanding its presence at Ulta Beauty and Olive Young US stores, while in Europe business-to-business sales through Derma Space and Notino are building up, and in the Middle East growth is centered on Turkey's Gratis.
Competitive pressure from K-indie beauty brands such as Medicube and Tirtir appears to be intensifying in the domestic and Japanese markets. Overall, VT remains heavily reliant on a single skincare ampoule/essence category while pursuing rapid expansion across distribution channels and regions.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩111.5B | ₩29.1B | 26.1% |
| 2025Q3 | ₩110.2B | ₩12.1B | 11.0% |
| 2025Q4 | ₩115B | ₩12.7B | 11.0% |
| 2026Q1 | ₩114.3B | ₩17.3B | 15.2% |
| 2026Q2 | ₩131.7B | ₩10.7B | 8.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩240.2B | ₩23.6B | ₩11.1B | 9.8% | 14.4% | 114.8% |
| 2023 | ₩295.5B | ₩45.5B | ₩27.3B | 15.4% | 23.3% | 74.2% |
| 2024 | ₩431.7B | ₩110.9B | ₩98B | 25.7% | 42.2% | 49.4% |
| 2025 | ₩437.2B | ₩82.9B | ₩60.9B | 19.0% | 25.1% | 39.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annual revenue rose for three consecutive years, from KRW 240.2 billion in 2022 to KRW 295.5 billion in 2023, KRW 431.7 billion in 2024, and KRW 437.2 billion in 2025. The operating margin steadily improved from 9.8% in 2022 to 15.4% in 2023 and 25.7% in 2024, before falling to 19.0% in 2025.
On a quarterly basis, the operating margin dropped sharply from 26.1% in the second quarter of 2025 (revenue of KRW 111.5 billion, operating profit of KRW 29.1 billion) to 11.0% in both the third and fourth quarters of 2025, partially recovered to 15.2% in the first quarter of 2026, and then fell again to 8.1% in the second quarter of 2026 (revenue of KRW 131.7 billion, operating profit of KRW 10.7 billion).
This margin adjustment coincides with the period of expanded marketing spending tied to overseas market expansion.
Owners' net income surged from KRW 11.1 billion in 2022 to KRW 27.3 billion in 2023 and KRW 98.0 billion in 2024, before declining to KRW 60.9 billion in 2025, with the sharp 2024 jump appearing to partly reflect business-restructuring-related effects.
Quarterly owners' net income fell from KRW 20.5 billion in the second quarter of 2025 to KRW 8.0 billion in the third quarter and KRW 10.2 billion in the fourth quarter; it then registered KRW 18.2 billion in the first quarter of 2026, exceeding operating profit of KRW 17.3 billion, before dropping to just KRW 2.7 billion in the second quarter, well below operating profit of KRW 10.7 billion, pointing to quarter-to-quarter volatility likely influenced by one-off items.
Over the most recent four quarters (third quarter of 2025 through second quarter of 2026), combined revenue was about KRW 471.2 billion and operating profit about KRW 52.8 billion, an operating margin of roughly 11.2%, remaining below the annual-basis margin levels seen previously.
On the cash flow side, operating cash flow declined from KRW 87.1 billion in 2024 to KRW 49.7 billion in 2025, reflecting both lower net income and increased working-capital needs tied to operations.
The K-beauty industry is going through a phase in which low- and mid-price line expansion at offline channels such as Daiso and Olive Young is occurring alongside diversification of export channels through online and global e-commerce.
In the skincare ampoule and microneedle category where VT operates, marketing competition from K-indie brands such as Medicube and Tirtir has intensified, and KB Securities noted in a March 2026 report that revenue growth was slowing in the domestic and Japanese markets amid this competition.
Japan remains a market where offline distribution still carries significant weight even after the pandemic, and VT continues to expand the number of stores carrying its products at chains such as Loft and PLAZA to defend market share.
The United States, Europe, and the Middle East still contribute relatively little to revenue, but growth is diversifying as the company gains placement at large retail networks including Costco, Ulta Beauty, Notino, and Gratis.
China has become accessible through online channels after the Reedle Shot line obtained the required hygiene license.
Larger cosmetics companies such as Amorepacific are also expanding overseas channels, placing VT in a position where it is trying to differentiate itself through rapid geographic diversification despite its comparatively smaller revenue base.
Across the industry, rising marketing and channel-listing costs have made defending operating margins a common challenge.
In its second-quarter 2026 earnings release, VT stated that growth momentum in new markets such as Europe and the Middle East was becoming visible and that overall revenue expansion was continuing.
In the United States, developments included a new PDRN duo pack supply agreement with Costco, additional third-quarter shipments after the Reedle Shot duo pack sold out, and an Ulta Beauty pop-up event in Los Angeles, alongside continued expansion of Olive Young US stores (Pasadena and Westfield) and operation of roughly 120 SKUs on the global mall.
Domestically, the company plans to launch a new product combining the strengths of PDRN and Reedle Shot in the fourth quarter, with five additional PDRN tone-on line products slated for the third quarter.
In August 2026, the company announced a plan to buy back and fully cancel KRW 15.0 billion of treasury shares, its second such action in about a year following a buyback in July 2025.
KB Securities, in a March 2026 report, cut its 2026 operating profit estimate by 42.2% and lowered its target price by 35.3% to KRW 22,000, citing expanded marketing costs tied to entry into the United States, Russia, and other Western markets as well as slowing revenue growth in the domestic and Japanese markets.
The same report also noted that the company was pursuing revenue growth in new growth regions through marketing investment and was responding with new product categories such as PDRN.
If growth in Russia, the Middle East, and Europe continues, regional concentration could ease over time, though the absolute revenue scale from these regions remains small relative to Japan and the domestic market.
VT's market valuation needs to be viewed alongside its multi-year history of operating margins that rose from single digits to the mid-to-high 20s and then fell back into the low-teens-to-single-digit range.
The stock's price relative to net assets is understood to trade in a lower range compared with the period of rapid earnings growth, which is not unrelated to the fact that the sharp 2024 profit increase was accompanied in part by one-off factors.
Based on the most recent confirmed disclosures, there has been no dividend payout, meaning shareholder returns rely more on share buybacks and cancellations than on dividends.
Because the earnings structure remains profitable on an annual basis but shows significant quarterly volatility, assessing valuation calls for looking at trends across multiple quarters rather than any single quarter in isolation.
Some in the brokerage community have suggested margins could recover once overseas new-market revenue contribution becomes more substantial, while others point to a structurally higher marketing cost burden going forward.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
In the second quarter of 2026, revenue from Europe and the Middle East grew 454% and 546% year over year, respectively, offering an early signal of diversification away from reliance on Japan and the domestic market.
This growth has been supported by placement at large local retail networks including Notino, Derma Space, and Gratis. If this regional expansion continues, it could help reduce dependence on any single market.
The company continues to gain placement at major retail channels such as Costco, Ulta Beauty, and Olive Young US stores, with instances of PDRN and Reedle Shot duo packs selling out. Marketing touchpoints are also expanding through global mall SKU growth and pop-up events. This could form the basis for a larger U.S. revenue contribution going forward.
The company decided on two rounds of treasury share buybacks totaling KRW 30.0 billion in July 2025 and August 2026, each involving full cancellation of the repurchased shares. This approach could produce a shareholder return effect through a reduction in shares outstanding. The repeated cancellation decisions can be interpreted as evidence of a consistent capital allocation policy.
The operating margin fell from 26.1% in the second quarter of 2025 to 8.1% in the second quarter of 2026. KB Securities, in a March 2026 report, pointed to this margin decline as having emerged from the third quarter of 2025 and cut its 2026 operating profit estimate by 42.2%. How much of the expanded marketing spending translates into sustained revenue growth remains an open question.
KB Securities assessed that revenue growth was slowing in the domestic and Japanese markets amid intensifying competition from K-indie brands. Since these two markets still account for a large share of regional revenue, if the slowdown persists, growth in new markets would need to offset it.
Owners' net income swung sharply from KRW 18.2 billion in the first quarter of 2026 (above operating profit of KRW 17.3 billion) to KRW 2.7 billion in the second quarter (below operating profit of KRW 10.7 billion). This suggests possible one-off items were involved and reduces the predictability of quarterly results.
In the early stages of entering emerging markets, upfront investment in pop-up events, influencer marketing, and store listing fees tends to precede revenue generation. If these costs outpace revenue growth, recovery of the operating margin could be delayed. How the company manages the timing of visible returns on marketing investment remains a key factor.
Marketing competition from K-indie brands such as Medicube and Tirtir appears to be intensifying in the core domestic and Japanese markets. With VT's high dependence on a single category (ampoules and essences), new product launches or channel advantages by competitors could directly affect its revenue.
A substantial portion of revenue is generated overseas across Japan, the United States, Europe, the Middle East, and Russia, exposing earnings to currency fluctuations.
In addition, country-specific cosmetics certification and regulatory procedures, such as China's hygiene license requirement, can affect the pace of entry into new markets.
Check whether the third-quarter operating margin recovers from the 8.1% level seen in the second quarter, and whether revenue growth in Europe and the Middle East continues.
The progress and completion of the KRW 15.0 billion treasury share buyback and cancellation plan announced in August 2026 should be verified through DART filings.
The domestic launch of the new PDRN-Reedle Shot combination product and its early sales response should be monitored.
It is worth checking to what extent additional third-quarter shipments to North American channels such as Costco and Ulta Beauty are reflected in revenue.
VT is a cosmetics company built around its Reedle Shot and PDRN lines, expanding its revenue base beyond the domestic and Japanese markets into the United States, Europe, and the Middle East.
The operating margin improvement trend that continued through 2024 reversed starting in the third quarter of 2025, falling to 8.1% in the second quarter of 2026 and clearly reflecting the burden of expanded marketing spending.
At the same time, early signs of new-market diversification are also visible, with revenue in Europe and the Middle East growing by triple-digit percentages.
Quarterly owners' net income has shown volatility that appears to be linked to one-off items, making it more informative to look at a sequence of quarters rather than any single quarter.
The company has continued its shareholder return policy through two rounds of treasury share buybacks and cancellations, while dividends have not yet been paid.
Key points to watch going forward are when new-market revenue contribution becomes large enough to offset the marketing cost burden, and whether intensifying competition in the core domestic and Japanese markets eases.
Report written 2026-09-05 · Data as of 2026-09-04
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