PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Prices as of the 2026-10-02 close
Smart card and USIM supplier QuantumRail (formerly Xcure) swung to an operating profit in 2025, but revenue fell sharply and losses returned in the first half of 2026 shortly after its corporate rebranding.
2025 revenue reached KRW 18.5 billion with operating profit of KRW 1.9 billion, the best operating margin (10.3%) in four years.
In July 2026 the company changed its name from Xcure to QuantumRail via an extraordinary shareholders' meeting and relocated its headquarters to Gimpo, Gyeonggi Province.
The company set up a joint venture (51% stake) with US-based Naoris Quantum Protocol, securing exclusive domestic rights for a quantum-security-based platform.
First-quarter 2026 revenue fell 44.2% year on year, with the company swinging to an operating loss and a large net loss that continued into the second quarter.
An upward adjustment to the conversion price of outstanding convertible bonds reduced potential dilution, but new bond issuances and other financing activity have continued.
QuantumRail operates in the telecom, finance, and security sectors based on smart card embedded software and card operating system (COS) source technology.
It has built a track record supplying 4G LTE NFC-USIM and 5G USIM products to South Korea's mobile carriers including SK Telecom and KT, establishing competitiveness in device security and authentication.
The company previously changed its name from Hansol Secure to Xcure in 2020, and on July 22, 2026, an extraordinary shareholders' meeting approved articles-of-incorporation changes that renamed it QuantumRail while relocating its headquarters to Gimpo, Gyeonggi Province.
The stated reason for the rebrand was to reinforce its corporate growth strategy and improve its image.
More recently the company has expanded beyond legacy telecom and financial security into quantum security, most notably by forming a joint venture with US-based Naoris Quantum Protocol in March 2026 and securing exclusive domestic commercialization rights.
The joint venture is structured with QuantumRail holding 51% and Naoris 49%, and the company plans to extend the business across telecom infrastructure, financial systems, IoT, and public-sector domains, using domestic results as a springboard into Japan and Southeast Asia.
Its CEO was officially invited to attend Naoris' 'Q-Day' event in New York. Although the exchange's sector classification places the company under gaming, its actual revenue stems from smart card/USIM supply and the newly launched quantum security business.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩5.2B | ₩1.2B | 22.6% |
| 2025Q3 | ₩5.6B | ₩1.3B | 23.0% |
| 2025Q4 | — | — | — |
| 2026Q1 | ₩1.6B | -₩1.9B | −118.9% |
| 2026Q2 | ₩2.3B | -₩1.5B | −66.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩10.3B | ₩300M | ₩900M | 3.2% | 3.6% | 6.1% |
| 2023 | ₩34.8B | -₩100M | -₩2.7B | −0.3% | −12.4% | 96.3% |
| 2024 | ₩10.7B | -₩2.2B | -₩16.1B | −20.3% | −76.9% | 15.9% |
| 2025 | ₩18.5B | ₩1.9B | ₩200M | 10.3% | 0.7% | 59.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-30
Annual revenue jumped from KRW 10.3 billion in 2022 to KRW 34.8 billion in 2023, then collapsed to KRW 10.7 billion in 2024 before rebounding to KRW 18.5 billion in 2025.
Operating profit swung just as sharply, from a KRW 0.3 billion profit in 2022 to a KRW 0.1 billion loss in 2023 and a KRW 2.2 billion loss in 2024, before turning to a KRW 1.9 billion profit in 2025 that lifted the operating margin to 10.3%.
That marks a clear improvement versus the weak profitability (operating margin of -20.3% to 3.2%) recorded across 2022-2024.
On a quarterly basis, both the second quarter of 2025 (revenue of KRW 5.2 billion, operating profit of KRW 1.2 billion) and the third quarter (revenue of KRW 5.6 billion, operating profit of KRW 1.3 billion) posted double-digit operating profits that drove the full-year 2025 turnaround.
However, momentum reversed again in 2026: first-quarter revenue fell 44.2% year on year to KRW 1.6 billion, with an operating loss of KRW 1.9 billion and a net loss attributable to owners of KRW 4.7 billion.
Losses continued into the second quarter, with revenue of KRW 2.3 billion, an operating loss of KRW 1.5 billion, and a net loss attributable to owners of KRW 1.4 billion.
Notably, in the first quarter the net loss attributable to owners (KRW 4.7 billion) far exceeded the operating loss (KRW 1.9 billion), suggesting additional non-operating loss items were recognized.
Cash flow and leverage also fluctuated considerably: operating cash flow was positive at KRW 0.9 billion in 2022 and KRW 1.9 billion in 2023, turned negative at KRW -4.5 billion in 2024, and recovered to KRW 3.7 billion in 2025, while the debt ratio spiked from 6.1% in 2022 to 96.3% in 2023, eased to 15.9% in 2024, and rose again to 59.8% in 2025.
QuantumRail's traditional revenue base, the smart card and USIM market, is a mature industry tied to the handset and specification replacement cycles of Korea's three mobile carriers, with peer companies in the same theme historically moving in tandem based on carrier order volumes.
Because this market runs on an order-driven revenue structure, revenue can swing sharply from one period to the next, a pattern evident in QuantumRail's own surge in 2023 followed by a collapse in 2024.
The newly entered quantum security field is still at an early stage, built around a 'decentralized trust layer' concept that extends beyond conventional cybersecurity to mutual verification among networked systems, APIs, and devices, with the global competitive landscape itself still taking shape.
The company has said its Naoris partnership will extend into telecom infrastructure, financial systems, IoT, and public-sector domains, with plans to expand into Japan and Southeast Asia using domestic results as a springboard.
The digital-asset (RWA) infrastructure business is likewise an early-stage market whose progress depends on domestic institutional adoption and regulatory development, and its revenue contribution has not yet been confirmed.
Overall, QuantumRail can be viewed as a company in transition, straddling a mature legacy business (USIM) and nascent new ventures (quantum security and digital assets).
No separate revenue guidance from the company has been confirmed, and future performance is likely to hinge on a recovery in legacy USIM order volumes and the pace at which new businesses begin generating revenue.
The third-quarter 2026 report is due by the statutory filing deadline of November 16, 2026 under the Financial Investment Services and Capital Markets Act; as with the first-quarter results, which were disclosed on May 15, the actual filing could come earlier, and it will mark a checkpoint for whether new-business revenue is reflected.
The remaining KRW 6.4 billion in convertible bonds saw potential conversion shares reduced from roughly 5.36 million to roughly 3.42 million after an upward adjustment to the conversion price, but a corrected disclosure in August 2026 regarding a new convertible bond issuance means potential share-count changes still warrant monitoring.
The company extended a KRW 6.2 billion lending arrangement carrying 20% annual interest through November 30, 2026, and how such financial-asset management activity affects non-operating results is another point to watch.
Whether the Naoris joint venture converts its exclusive domestic rights into actual customers and contracts, and whether the newly established digital-asset entity develops into a concrete service, are likely to determine the success of the company's medium-to-long-term diversification strategy.
QuantumRail achieved a full-year operating profit and a positive net income attributable to owners in 2025, but has fallen back into quarterly operating and net losses in 2026.
This creates a notable gap between the most recently disclosed annual results and the 2026 earnings trend, a lag worth keeping in mind when interpreting profit-based metrics.
Total equity has generally trended higher since 2022, but the debt ratio has swung widely from year to year, a capital-structure volatility that should also be weighed when assessing the share price relative to net assets.
No dividend payment history has been confirmed in recent years, so the pace of business diversification and earnings volatility appear to matter more than dividend-related metrics for now.
Because revenue contribution from the newly launched quantum security and digital asset businesses has not yet become visible, future valuation metrics are likely to track the recovery of legacy USIM orders and the progress of these new ventures.
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 2026-09-30
The full-year 2025 operating margin of 10.3% marked a clear improvement over the -20.3% to 3.2% range recorded across 2022-2024. Two consecutive quarters of double-digit operating profit, KRW 1.2 billion in the second quarter and KRW 1.3 billion in the third, drove the turnaround.
Operating cash flow also swung from a KRW 4.5 billion outflow in 2024 to a KRW 3.7 billion inflow in 2025, indicating recovering cash generation.
In March 2026 the company formed a joint venture (51% stake) with US-based Naoris Quantum Protocol, securing exclusive domestic rights for a quantum-security platform. It has outlined plans to extend into telecom, finance, IoT, and public-sector domains and expand into Japan and Southeast Asia. This represents a potential opportunity to diversify revenue away from the legacy USIM business.
An upward adjustment to the conversion price on the remaining KRW 6.4 billion convertible bond cut potentially convertible shares from about 5.36 million to about 3.42 million. The company said this should partly ease overhang concerns that had been raised in the market.
However, a new convertible bond issuance decision in August 2026 means the overall potential share count still needs to be monitored.
First-quarter 2026 revenue fell 44.2% year on year to KRW 1.6 billion, with an operating loss of KRW 1.9 billion and a net loss attributable to owners of KRW 4.7 billion.
Losses continued in the second quarter, with revenue of KRW 2.3 billion, an operating loss of KRW 1.5 billion, and a net loss attributable to owners of KRW 1.4 billion. It remains too early to tell whether the 2025 turnaround will prove sustainable or was a temporary phenomenon.
The legacy business is order-driven, dependent on USIM order volumes from a small number of carriers including SK Telecom and KT. Revenue actually surged to KRW 34.8 billion in 2023 before collapsing to KRW 10.7 billion in 2024, illustrating very large year-to-year swings. High dependence on specific customers and contracts makes earnings relatively difficult to predict.
Over the past 60 days the company disclosed nine capital- and bond-related filings, including convertible bond issuances and corrections, a transfer of shares in another company, and an extended lending arrangement.
It has also actively managed non-core financial assets, extending a KRW 6.2 billion loan at 20% annual interest through November 2026. Whether such activity strengthens the core business or adds financial strain warrants ongoing scrutiny.
Both the quantum-security joint venture and the digital-asset business are at an early stage, and the timing and scale of any revenue contribution remain unclear. It has not yet been verified whether securing exclusive domestic rights will translate into commercial contracts.
The possibility that new-business investment burdens could undermine the existing profitability structure cannot be ruled out.
Potentially convertible shares remain outstanding, including the KRW 6.4 billion in existing convertible bonds and a further bond issuance decided in August 2026. Renewed adjustments to conversion terms or new bond issuances could reignite dilution concerns tied to an increased share count. Active financial activity such as high-interest lending also exposes the company to counterparty credit risk.
Annual revenue has swung dramatically, from KRW 10.3 billion to KRW 34.8 billion and back to KRW 10.7 billion, illustrating very large revenue and earnings volatility. The return to losses in the first half of 2026, following the 2025 turnaround, underscores this pattern.
Given the earnings structure's dependence on specific quarters and contracts, similar volatility could recur going forward.
The statutory deadline for the third-quarter 2026 report, a checkpoint for whether revenue recovers and whether new-business revenue is reflected.
Maturity date of the recently extended KRW 6.2 billion lending arrangement; repayment status and any changes to terms should be checked.
Watch for whether the Naoris joint venture converts its exclusive domestic rights into actual customers and contracts, and whether concrete commercialization news emerges.
Watch for additional disclosures on conversion requests or term changes involving the remaining and newly issued convertible bonds.
QuantumRail (formerly Xcure) is a company in transition, layering new quantum-security and digital-asset ventures atop its legacy smart card and USIM supply business following a 2026 rebranding.
Financially, it posted a clear turnaround in 2025 with revenue of KRW 18.5 billion and operating profit of KRW 1.9 billion, but revenue fell sharply year on year in the first and second quarters of 2026, and operating and net losses returned.
On the capital-structure side, the debt ratio has swung widely from year to year, and financial activity including convertible bond issuances, term adjustments, and lending arrangements has remained active.
The timing and scale of any revenue contribution from the newly formed Naoris joint venture and digital-asset business have not yet been confirmed. Investors should watch the recovery of legacy order volumes, concrete results from the new businesses, and trends in potential share dilution. This report is prepared for informational purposes and does not include a buy or sell recommendation.
Report written 2026-10-01 · Data as of 2026-09-30
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