PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close
The core TOEIC and language education business continues, but revenue and profit have declined for several straight years, while a damages lawsuit against the government over the AI digital textbook (AIDT) policy has emerged as a new variable.
2025 revenue of KRW 51.8 billion and operating profit of KRW 0.95 billion (1.8% margin) mark four straight years of declining sales and profit from 2022 to 2025
Two of the last four quarters (2025Q3-2026Q2) posted operating losses, while the first and second quarters of 2026 both returned to operating profit
In June 2026, about a dozen textbook publishers including YBM filed a damages lawsuit against the state over the AIDT policy, with the claimed amount reported at around KRW 200 billion
A related administrative lawsuit over the AIDT opt-in policy was dismissed at first instance on July 23, 2026, making a possible appeal a key point to watch
Equity and the debt ratio remain stable, with operating cash flow exceeding net income every year
YBM Net Inc. entered the online education market in 2000 and has grown centered on TOEIC and other language education services as a KOSDAQ-listed edtech company.
Its core business is the online lecture brand 'YBM Ingang,' offering free and paid courses for TOEIC Listening & Reading and TOEIC Speaking, alongside AI-based learning services such as native-speaker video calls, an AI level test, AI Speaka, and an AI Q&A bot.
Offline, the company operates a range of brands spanning blended online-offline learning, including YBM language institutes, YBM corporate training (on-site, online, and job-customized programs), YBM university education, the YBM Career Campus for job and certification preparation, the YBM Ingle elementary/middle school English franchise, and YBM ECC immersion academies for preschool through middle school students.
Beyond exam-prep content, the company holds content assets such as the YBM Readers online English reading program and the YBM All-in-All dictionary vocabulary database.
More recently, the company participated as a publisher in the government's AI Digital Textbook (AIDT) policy in an attempt to expand into textbook and educational content areas, but a change in the policy's legal status has significantly altered the nature and profit contribution of that business.
In terms of competitive positioning, the company competes with online language platforms such as Hackers, Pagoda, and Siwonschool in the TOEIC and language education market, and with numerous edtech providers in the corporate and university education segments.
Segment-level revenue breakdowns were not separately disclosed in recent filings, so this description remains qualitative. Overall, the company's revenue base is structured around exam-taking demand and seasonal learning cycles.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩12B | -₩200M | −1.5% |
| 2025Q3 | ₩13.7B | ₩700M | 4.8% |
| 2025Q4 | ₩12.6B | -₩70,861,559 | −0.6% |
| 2026Q1 | ₩12.9B | ₩500M | 3.8% |
| 2026Q2 | ₩12.2B | ₩300M | 2.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩62.6B | ₩4.8B | ₩7.6B | 7.6% | 15.5% | 79.0% |
| 2023 | ₩60.5B | ₩5.1B | ₩5.1B | 8.5% | 9.8% | 58.4% |
| 2024 | ₩58.3B | ₩2.8B | ₩3.2B | 4.8% | 6.0% | 55.1% |
| 2025 | ₩51.8B | ₩900M | ₩1.6B | 1.8% | 3.1% | 52.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
YBM Net's annual revenue declined for four consecutive years, from KRW 62.6 billion in 2022 to KRW 60.5 billion in 2023, KRW 58.3 billion in 2024, and KRW 51.8 billion in 2025.
Operating profit fell even more sharply over the same period, from KRW 4.8 billion (7.6% margin) to KRW 5.1 billion (8.5%), KRW 2.8 billion (4.8%), and KRW 0.95 billion (1.8%), reflecting significant margin erosion beyond the revenue decline.
Net income attributable to owners also shrank markedly, from KRW 7.6 billion in 2022 to KRW 1.6 billion in 2025, a result that appears to combine the operating profit decline with a mix of one-off factors.
On a quarterly basis, the second quarter of 2025 posted revenue of KRW 12.0 billion with an operating loss of KRW 0.17 billion, before the third quarter turned profitable with revenue of KRW 13.7 billion and operating profit of KRW 0.66 billion, only for the fourth quarter to swing back to a loss with revenue of KRW 12.6 billion and an operating loss of KRW 0.07 billion, illustrating pronounced seasonal volatility.
Entering 2026, the company posted operating profit for two consecutive quarters, with revenue of KRW 12.9 billion and operating profit of KRW 0.48 billion in the first quarter and revenue of KRW 12.2 billion and operating profit of KRW 0.30 billion in the second quarter.
Net income attributable to owners also improved to KRW 0.66 billion in the first quarter and KRW 0.42 billion in the second quarter of 2026 compared with the earlier loss-making quarters.
On the balance sheet side, the debt ratio has steadily declined from 79.0% in 2022 to 52.8% in 2025, and operating cash flow has consistently exceeded net income each year (KRW 5.07 billion in 2025), indicating that cash-generating capacity itself has remained solidly managed.
Still, given the multi-year decline in revenue and profit, whether the recent quarterly return to profitability marks a sustained improvement will require confirmation in subsequent results.
Korea's language education market has a seasonal industry structure in which demand for certified exams such as TOEIC recurs in line with job-seeking seasons and university semester schedules.
While regular TOEIC exams are administered on a monthly registration cycle, providing relatively steady underlying demand, the online lecture market has multiple competing operators such as Hackers, Pagoda, and Siwonschool, sustaining ongoing competition for market share.
The single largest variable for the industry overall is the AI Digital Textbook (AIDT) policy announced by the government in June 2023.
After the Ministry of Education shifted from mandatory rollout to a school-by-school opt-in approach, the adoption rate stayed in the 30% range, and a Board of Audit and Inspection review found that even among schools that adopted AIDT, the average share of students using it for ten days or more was only 8.1%, while the average share who never logged in at all was 60%.
This low level of engagement became the backdrop for Woongjin Thinkbig, which failed the certification review, to withdraw from the business, with other publishers also considering headcount reductions and business downsizing.
Some in the industry have since characterized the situation as AIDT, after more than two years of preparation, being introduced into schools in March 2025 only to be downgraded to mere 'reference material' status within a single semester, effectively heading toward exit.
This policy shift has had a common impact across numerous textbook and educational content publishers including YBM Net, and the industry-wide question of investment recovery now hinges on the outcome of ongoing legal proceedings.
The company continues seasonal marketing in its core TOEIC and language lecture business, and in early 2026 launched a new package called 'TOEIC Edition' bundling lectures from leading regional instructors nationwide, timed for the winter break season.
It has also continued exam-season marketing activities, including a free special lecture ahead of the first regular TOEIC exam of 2026 to help test-takers prepare. On the other hand, AIDT-related legal action remains the key source of uncertainty in the outlook.
In June 2026, about a dozen textbook publishers including YBM and Dong-A Publishing filed a KRW 200 billion damages lawsuit against the Ministry of Education at the Seoul Central District Court, with Kim & Chang and Bae, Kim & Lee acting as legal representatives.
Separately, in an administrative lawsuit filed by Chunjae Textbook and YBM against the Minister of Education seeking to void the decision on optional AIDT adoption, the Seoul Administrative Court dismissed the plaintiffs' claim on July 23, 2026, and the publishers stated they are reviewing an appeal of the ruling while focusing on the remaining constitutional petition.
The outcome of these legal proceedings, and whether the company can recover AIDT-related invested costs through damages or impairment treatment, remains a variable that could affect future results.
The company's net income has contracted every year since 2022, meaning valuation metrics for 2025 are calculated on a substantially reduced profit base. That said, operating profit and net income have both turned positive for two consecutive quarters heading into 2026, a directional signal of improvement.
The share price trades at a discount to net asset (book) value, and the dividend yield is understood to run below the industry average.
Given the multi-year profit decline this stock has experienced, care is warranted in directly comparing current metrics with the trading-multiple bands formed during periods of stronger past profit momentum.
Overall, the durability of the recent profit recovery and the outcome of AIDT-related legal proceedings appear to be key variables for interpreting valuation metrics 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 2026-08-23
Unlike the operating losses recorded in the second and fourth quarters of 2025, the company posted operating profit in both the first and second quarters of 2026. Net income attributable to owners also swung from loss to profit over the same period, confirming a directional improvement.
Given the seasonally volatile business structure, whether this trend continues into subsequent quarters is a key point to watch.
The debt ratio has steadily declined from 79.0% in 2022 to 52.8% in 2025, improving financial soundness. Operating cash flow has also consistently exceeded net income each year, indicating that cash-generating capacity itself remains solidly managed. Total equity has also been largely preserved since 2022.
The company holds brand strength as an early leader in Korea's online TOEIC lecture market since the industry's early days, and continues seasonal marketing such as new package launches and free special lectures.
It diversifies its revenue base through a portfolio of education brands spanning both online and offline channels.
Revenue fell from KRW 62.6 billion in 2022 to KRW 51.8 billion in 2025, and the operating margin dropped sharply from 7.6% to 1.8% over the same period. Net income also shrank from KRW 7.6 billion to KRW 1.6 billion, showing a clear multi-year profit decline. Whether the recent quarterly return to profit can reverse this longer-term trend requires further confirmation.
The KRW 200 billion damages lawsuit filed by publishers including YBM is still at the first-instance stage, and its outcome cannot be predicted. A related separate administrative lawsuit was dismissed at first instance in July 2026, leaving the prospect of an appeal uncertain. Recovery of AIDT-related invested costs may hinge on the outcome of these proceedings.
Two of the last four quarters (2025Q2 and 2025Q4) posted operating losses, showing significant quarter-to-quarter earnings variability. Intensifying competition in the online language education market is also a persistent variable. Market-share competition with numerous rivals could affect the pace of margin recovery.
Multiple legal proceedings are underway simultaneously, including a damages lawsuit and a related administrative lawsuit and constitutional petition arising from the AIDT policy change.
A related administrative lawsuit has already been dismissed at first instance, so a favorable outcome in the subsequent damages lawsuit cannot be assured. If the outcome proves unfavorable, the company may be unable to recover invested development costs.
Numerous operators compete in the online language education market, which may sustain ongoing competition over market share and pricing. If investments in new packages and marketing do not translate into immediate revenue growth, margin recovery could be delayed. Intensifying competition may be a structural factor intertwined with the multi-year revenue decline trend.
The company's revenue has a seasonal structure tied to job-seeking seasons and exam registration schedules, resulting in large quarter-to-quarter earnings variability. Changes in labor market conditions or hiring seasons could also cause fluctuations in underlying TOEIC test-taking demand. This represents an external variable beyond the company's control.
This is the expected timing for the 2026 third-quarter earnings disclosure, and it will be important to check whether the operating-profit trend from the last two quarters continues into the third quarter.
It will be worth monitoring the progress of the first-instance proceedings in the approximately KRW 200 billion AIDT damages lawsuit filed by YBM and other publishers, as well as whether an appeal is filed against the separate administrative lawsuit's dismissal.
These are scheduled dates for regular TOEIC exams, offering a point to observe the seasonal pattern of test-taking demand and related online lecture and special-course revenue.
It will be useful to track the progress of the constitutional petition contesting AIDT's legal status, as a basis for assessing the future direction of the related business.
YBM Net remains a long-standing leader in Korea's online TOEIC and language education market with solid brand equity and a stable financial structure, but it has faced a structural decline in revenue and operating profit for four consecutive years since 2022.
The return to operating profit and net income for two consecutive quarters heading into 2026 is a positive directional signal, but given the seasonally volatile business structure, its sustainability requires further confirmation.
The largest uncertainty lies in the legal proceedings tied to the AI Digital Textbook (AIDT) policy change, where the outcome of the roughly KRW 200 billion damages lawsuit filed in June 2026 and the possible appeal of a related administrative lawsuit could affect future earnings and cost treatment.
On the financial soundness side, the declining debt ratio and operating cash flow exceeding net income every year remain consistently positive factors.
The intensifying competitive environment in online language education and the multi-year profit decline trend are factors that should be weighed together in a balanced view.
Investors should consider both the upcoming quarterly results and the progress of the AIDT-related litigation together when forming their own assessment.
Report written 2026-09-05 · Data as of 2026-09-04
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