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
Emro, Korea's leading AI-based supplier relationship management (SRM) software company, grew revenue in 2025 but saw operating profit collapse, and continued to post operating losses in the first half of 2026 while expanding overseas SaaS business under a newly appointed CEO.
2025 revenue rose to KRW 83.98 billion, but operating profit shrank sharply to KRW 0.91 billion from KRW 8.61 billion in 2024, pulling the operating margin down to 1.1%.
The company posted consecutive operating losses in 1Q26 and 2Q26 (KRW -2.76 billion and KRW -1.11 billion, respectively), extending first-half weakness.
In June 2026, Sangwon Cho, a Samsung SDS veteran, was named new CEO, signaling a push into North American and European markets and expansion of agentic AI business.
The SRM SaaS solution 'Caidentia' has expanded its customer base to a North American PC/server maker and a European energy company, broadening its overseas revenue base.
After a large net loss of KRW -26.45 billion in 2023, the company swung to profit in 2024, but earnings volatility has resurfaced through 2025-2026.
Founded in 2000, Emro is a specialist in supplier relationship management (SRM) solutions and has been a subsidiary of Samsung SDS since the 2023 acquisition.
Its core products are the self-developed AI-based SRM SaaS solution 'Caidentia' and the on-premise procurement solution 'SMARTsuite,' with the recently upgraded SMARTsuite v10.0 integrating cost management and AI functions for new product development stages.
Domestic clients are centered on large automotive, electronics and manufacturing conglomerates such as Samsung Electronics and HL Mando, and the company has recently added large corporate clients in shipbuilding, semiconductor equipment, refining and chemicals to broaden its industry coverage.
Overseas business gained momentum from 2024 with Caidentia, supplying solutions to at least three local customers in North America including a leading global PC/server manufacturer, and recently securing its first European customer through a supply contract with a European energy solutions company.
Revenue is split between system implementation (license/build) revenue and SaaS-type revenue from technology fees and cloud usage, and reports for the first half of 2026 indicated that while overall revenue declined, higher value-added technology fee and cloud revenue grew.
In terms of competitive positioning, Emro holds a leading position in the domestic SRM market, while overseas it is in an early stage of expanding its footprint against global SaaS competitors.
Its partnership with parent Samsung SDS remains a key competitive factor, providing access to domestic and international sales networks and credibility with enterprise clients.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩22.1B | ₩200M | 0.7% |
| 2025Q3 | ₩21.3B | ₩300M | 1.5% |
| 2025Q4 | ₩20B | -₩500M | −2.6% |
| 2026Q1 | ₩14.8B | -₩2.8B | −18.7% |
| 2026Q2 | ₩17.8B | -₩1.1B | −6.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩58.6B | ₩6.5B | ₩6.4B | 11.1% | 12.7% | 44.6% |
| 2023 | ₩63.2B | ₩4.7B | -₩26.7B | 7.4% | −94.5% | 217.5% |
| 2024 | ₩79.5B | ₩8.6B | ₩18.6B | 10.8% | 21.0% | 15.1% |
| 2025 | ₩84B | ₩900M | ₩2.9B | 1.1% | 3.1% | 18.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-24
On an annual basis, revenue grew steadily from KRW 58.62 billion in 2022 to KRW 63.17 billion in 2023, KRW 79.46 billion in 2024 and KRW 83.98 billion in 2025.
However, operating profit moved from KRW 6.49 billion (11.1% margin) in 2022 to KRW 4.66 billion (7.4%) in 2023, recovered to KRW 8.61 billion (10.8%) in 2024, then contracted sharply to KRW 0.91 billion (1.1%) in 2025.
Net income swung even more dramatically: a large net loss of KRW -26.45 billion in 2023 was followed by a swing to profit of KRW 18.61 billion in 2024, before narrowing again to KRW 2.53 billion in 2025.
On a quarterly basis, owner net income was a relatively solid KRW 1.88 billion in 3Q25, but the company posted net losses in two consecutive quarters — KRW -2.42 billion in 1Q26 and KRW -1.05 billion in 2Q26 — after a small profit of KRW 0.42 billion in 4Q25.
Revenue also trended lower, from KRW 21.29 billion in 3Q25 and KRW 20.01 billion in 4Q25 to KRW 14.76 billion in 1Q26 and KRW 17.77 billion in 2Q26.
Recent reporting noted that 2Q26 revenue fell 19.4% year-on-year, with operating profit swinging from a prior-year gain to a loss, and that first-half cumulative revenue dropped 23.8% year-on-year while operating profit also swung from positive to negative.
The profit decline appears to reflect a combination of weaker corporate IT investment and rising cost burdens from expanding overseas SaaS operations.
Still, over the trailing four quarters (3Q25-2Q26), net losses have remained relatively modest, suggesting a different character from the large one-off loss recorded in 2023.
The SRM software market is growing as enterprises accelerate digital transformation for supply chain risk management and cost optimization, with agentic AI technology that automates repetitive tasks emerging as a key competitive differentiator.
Citing Gartner data, an Emro representative stated that the global agentic AI supply chain software market is expected to grow to USD 53 billion (roughly KRW 78 trillion) by 2030.
Domestically, the company has described itself as having held the No.1 position in the SRM segment since 2015, with reference cases built on large corporate clients such as Samsung Electronics and HL Mando cited as a strength.
Overseas, however, global enterprise software players such as SAP and Oracle already hold entrenched positions, placing Emro in a relative latecomer role as it enters the North American and European markets.
The company has raised its visibility by participating in the Gartner Supply Chain Symposium in Orlando and Barcelona for three consecutive years, and reported ranking third in booth visitor count at the U.S. event.
Weaker domestic corporate IT investment sentiment has weighed on Emro's on-premise licensing revenue, while demand for cloud/SaaS transition appears to have remained relatively resilient.
In June 2026, Emro named former Samsung SDS executive Sangwon Cho as its new CEO, with the formal appointment completed through an extraordinary shareholders' meeting and board resolution in July.
Drawing on his experience leading Caidentia's global sales and marketing at Samsung SDS, Cho plans to accelerate expansion into North American and European markets, and has specifically stated a goal of broadening the U.S. customer base from manufacturing and automotive into business-to-consumer (B2C) sectors such as apparel and food and beverage.
To support this, Emro is supplying Caidentia through a three-way agreement with Samsung SDS and Onainsolutions, an operator of a supply chain management platform whose clients include Nike, Walmart and Starbucks, and has recently rolled out an update adding development-stage purchasing functions.
Domestically, the global procurement integration system project for HL Mando is underway, to be rolled out sequentially across eight domestic and overseas sites.
The company has stated plans to secure large new clients in industries such as shipbuilding, semiconductor equipment, refining and chemicals, and to expand its agentic AI-based AX (AI transformation) business, expressing expectations that performance will improve alongside a recovery in corporate investment sentiment in the second half.
These initiatives remain at an early execution stage, however, and the actual timing and scale of their revenue and profitability contribution will need to be confirmed through future quarterly results and new contract disclosures.
Emro's share valuation sits between the strong earnings recovery seen in the 2024 profit-turnaround phase and the subsequent contraction in profit through the loss-making first half of 2026, leaving market assessments mixed.
The stock has tended to trade at a premium relative to net asset value compared to historical levels, which can be interpreted as partly reflecting expectations tied to its dominant position in the domestic SRM market and its integration into the Samsung SDS group.
On dividends, the absence of cash dividends in certain recent years suggests the company has prioritized channeling resources into overseas SaaS expansion over shareholder returns.
Given the significant quarter-to-quarter swings in profit, valuation should be considered alongside the trajectory of earnings recovery over the coming quarters rather than based on any single snapshot of profitability.
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 2026-08-24
Caidentia has broadened its overseas revenue base by securing at least three North American customers, including a PC/server manufacturer, and its first European client. A three-way partnership with Onainsolutions has also opened a channel to reach large retail brands such as Nike, Walmart and Starbucks.
With North American and European market expansion positioned as a core strategy under the new CEO, future contract wins could serve as a growth driver.
Following the 2023 Samsung SDS acquisition, Emro secured references with large corporations such as Samsung Electronics and HL Mando, and has recently expanded to new industry clients in shipbuilding, semiconductor equipment, refining and chemicals.
Access to Samsung SDS's domestic and international sales network serves as a credibility factor when selling to large global enterprises. The new CEO, also a Samsung SDS veteran, was appointed with the explicit aim of strengthening collaboration synergy between the two companies.
Caidentia is equipped with nine AI agents that automate repetitive tasks such as bill of materials (BOM) management, automatic generation of purchase requests and orders, and supplier recommendations.
The company has stated that this functionality drew strong interest from local companies at the Gartner Supply Chain Symposium. Given expectations for rapid growth in the agentic AI supply chain software market, early adoption of this technology could translate into a competitive advantage.
The company posted operating losses in both 1Q26 and 2Q26, with revenue trending lower compared to the second half of 2025. Reports indicated 2Q26 revenue fell 19.4% year-on-year and cumulative first-half revenue dropped 23.8%. If the slowdown in domestic IT investment persists, the timing of a recovery could be delayed.
Increased investment to expand global SaaS operations has been cited as one factor behind the recent deterioration in operating profit. If the pace of securing new overseas customers falls short of expectations, there is a risk that returns on this investment could be delayed. Competition with established players such as SAP and Oracle in North America and Europe is also a headwind.
The transition to a new CEO in July 2026 introduces uncertainty around the continuity of prior strategy and the execution capability of the new leadership.
Former CEO Jaemin Song completed his three-year term agreed upon at the time of the 2023 Samsung SDS acquisition, and the new CEO's performance has yet to be tested. Temporary execution disruptions during any organizational restructuring or strategic pivot cannot be ruled out.
Annual net income swung sharply from KRW 6.58 billion in 2022 to KRW -26.45 billion in 2023, KRW 18.61 billion in 2024 and KRW 2.53 billion in 2025, with net losses continuing through the first half of 2026.
This volatility appears to reflect the software business's sensitivity to project revenue recognition timing and one-off costs. Whether the company can achieve more stable quarterly profits going forward is an important point to monitor.
A significant portion of domestic revenue appears concentrated among a small number of large customers such as Samsung Electronics and HL Mando, and the automotive and electronics industries. Changes in investment plans by a specific major customer or a downturn in these industries could directly affect earnings.
Expansion into new industries such as shipbuilding, semiconductor equipment, refining and chemicals could help mitigate this dependence, but remains at an early stage.
In North America and Europe, the company must compete against already established global enterprise software providers such as SAP and Oracle. As overseas revenue expands, the impact of currency fluctuations on results could also grow.
If the scale and profitability of new overseas contracts fall short of the existing domestic business, it could weigh on the overall margin structure.
Expected timing of 3Q26 earnings release; important to check whether revenue and operating profit recover from first-half weakness and whether growth in SaaS-type revenue such as technology fees and cloud usage continues.
The progress of the HL Mando global procurement integration system rollout across domestic and overseas sites should be monitored, as project progress could affect the timing of future system implementation revenue recognition.
Whether the additional contract under discussion with a major North American electronics manufacturing services (EMS) company is finalized, and whether further European customers are secured, will serve as indicators of the pace of overseas business expansion.
Confirmation is needed on the specific management strategy, organizational changes, and execution of plans to expand agentic AI-based AX business to be announced under CEO Sangwon Cho's leadership.
Emro holds a leading position in the domestic SRM market and a stable customer base tied to its integration into Samsung SDS, but near-term profitability metrics have clearly weakened, with the operating margin falling to 1.1% in 2025 and operating losses continuing through the first half of 2026.
Overseas business is in an expansion phase, having secured at least three North American customers and a first European client, though the scale of its revenue contribution remains unverified at this early stage.
A leadership change took effect with the appointment of a new CEO in June 2026, which comes with both a strategic push to accelerate North American and European expansion and accompanying execution uncertainty.
The annual earnings pattern — a large net loss in 2023, a swing to profit in 2024, and a renewed profit contraction in 2025 — underscores the need to confirm the sustainability of earnings going forward.
The company has expressed expectations that results will improve alongside a recovery in corporate investment sentiment in the second half, though this outlook has yet to materialize.
Investors will need to monitor upcoming quarterly results, disclosures of new overseas contracts, and the execution track record of the new management team.
Report written 2026-09-05 · Data as of 2026-09-04
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