PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩800 per share · Prices as of the 2026-10-02 close
Creverse saw its operating margin collapse to roughly 1% in 2025 before posting two consecutive quarters of profit recovery in the first half of 2026, though structural challenges from a shrinking school-age population and delayed merger integration persist.
Consolidated operating profit shrank to KRW 2.24 billion (1.0% margin) in 2025 but recovered to KRW 2.61 billion in Q1 2026 and KRW 2.39 billion in Q2 2026.
Q4 2025 swung to an operating loss of KRW 2.33 billion and an owner net loss of KRW 4.81 billion, underscoring sizable quarter-to-quarter volatility.
The company itself has acknowledged that brand synergies from the 2023 CMS Edu merger did not materialize as quickly as expected.
Issuance of an exchangeable bond and a real estate disposal in 2025 helped lower the debt ratio from 389.9% at end-2024 to 296.9% at end-2025.
The stock trades at a premium relative to net asset value per share.
Creverse began as Chungdahm English institute in 1998, listed on KOSDAQ in 2008, and expanded its business structure through the 2023 merger with CMS Edu.
It currently operates roughly 330 learning centers nationwide under multiple brands including Chungdahm English, April English Institute, iGARTEN, CMS Gifted Education Center (math and science gifted education), and C-Cube Coding.
Its business model centers on tuition revenue, supplemented by textbook and material sales, online and metaverse learning platforms, franchising, and overseas curriculum exports.
Built on in-house R&D and edtech capabilities, the company offers blended learning and is expanding market presence through its metaverse English platform Bouncy.
In response to rising demand for coding and gifted education, it is strengthening literacy programs and talent-development curricula, and broadening its portfolio via overseas curriculum exports.
The 2023 CMS Edu merger was intended to expand cross-enrollment and brand synergy between the company's English and math businesses, but the early integration phase involved friction including weakened brand competitiveness.
In Korea's premium English and math private-education market, the company competes with large education and language-institute operators, and its core strategy centers on expanding the premium segment targeting higher-income households even as the school-age population shrinks.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩54.7B | ₩1.6B | 2.8% |
| 2025Q3 | ₩55.9B | ₩200M | 0.4% |
| 2025Q4 | ₩50B | -₩2.3B | −4.7% |
| 2026Q1 | ₩58.4B | ₩2.6B | 4.5% |
| 2026Q2 | ₩55.5B | ₩2.4B | 4.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩227.5B | ₩25.7B | ₩4.8B | 11.3% | 10.7% | 377.8% |
| 2023 | ₩233.5B | ₩25.2B | ₩15.3B | 10.8% | 34.9% | 374.2% |
| 2024 | ₩228.2B | ₩10.3B | ₩7.6B | 4.5% | 18.8% | 389.9% |
| 2025 | ₩220.9B | ₩2.2B | ₩6.6B | 1.0% | 14.1% | 296.9% |
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
Creverse's consolidated revenue rose from KRW 227.5 billion in 2022 to KRW 233.49 billion in 2023, then declined for two straight years to KRW 228.17 billion in 2024 and KRW 220.92 billion in 2025.
Operating profit fell sharply from KRW 25.65 billion (11.3% margin) in 2022 and KRW 25.22 billion (10.8%) in 2023 to KRW 10.32 billion (4.5%) in 2024, and further to KRW 2.24 billion (1.0%) in 2025.
Owner net income surged from KRW 4.83 billion in 2022 to KRW 15.34 billion in 2023, then contracted again to KRW 7.57 billion in 2024 and KRW 6.61 billion in 2025.
On a quarterly basis, operating profit was just KRW 0.20 billion in Q3 2025, and Q4 2025 swung to an operating loss of KRW 2.33 billion with an owner net loss of KRW 4.81 billion as seasonal costs concentrated.
Profitability then recovered for two consecutive quarters, with operating profit of KRW 2.61 billion and owner net income of KRW 2.10 billion in Q1 2026, followed by KRW 2.39 billion and KRW 3.29 billion, respectively, in Q2 2026.
Cumulative nine-month 2025 figures compiled by FnGuide showed consolidated revenue down 1.2% and operating profit down 57.0% year-on-year, while net income rose 187.6%, indicating that one-off items materially affected the earnings structure.
Annual operating cash flow declined from KRW 35.49 billion in 2022 to KRW 20.90 billion in 2025, though the company continued to generate positive operating cash flow each period.
Korea's private education market faces structural pressure from a shrinking school-age population and market saturation.
FnGuide's assessment of Creverse notes that the high-end private education market is growing on premium education demand and 'gold kids' marketing, even as overall performance remains weak, suggesting that demand for premium, high-priced education among higher-income households remains relatively resilient despite the declining student population.
Creverse is targeting this premium segment through its two core brands, Chungdahm English and CMS Gifted Education Center, while expanding its portfolio into coding and AI-related education.
On the edtech front, the company has developed generative-AI-based essay and descriptive-answer assessment tools, and participated as a partner company at an industry event hosted by an AI chip and infrastructure firm, showcasing its AI-based essay assessment and feedback technology.
Competitively, it vies with large domestic language and education operators in the premium English and math segments, though publicly disclosed market-share figures relative to individual rivals remain limited.
Overall, the industry is in a phase where top-line growth has stalled while premiumization and AI-driven differentiation are emerging as survival strategies.
The company has framed 2026 as a year of "strengthened growth momentum," stating that the results of brand renewal, curriculum innovation, and balance-sheet improvement are expected to become fully visible starting with the 2026 spring semester in March.
Its core brand, Chungdahm English, was reported to have set a target to raise enrollment from roughly 19,000 to about 28,000 students, an increase of approximately 47.4%. Consistent with this narrative, operating profit and owner net income improved sequentially for two consecutive quarters in Q1 and Q2 2026.
On the balance sheet, media reports indicate that an exchangeable bond issued in January 2025 boosted capital, and a roughly KRW 48 billion real estate sale completed in June along with about KRW 30 billion of debt repayment lowered the debt ratio from 390% at end-2024 to 257% as of the third quarter of 2025.
The company also outlined plans to strengthen its position in the premium English market centered on the THE OPEN brand and complete an AI-talent-oriented gifted education roadmap through CMS Gifted Education Center to maximize synergy between its English and math businesses.
However, the enrollment expansion target is the company's own plan, and actual enrollment outcomes and future quarterly results will need to confirm its realization.
With earnings passing through their 2025 trough and recovering for two consecutive quarters in the first half of 2026, the stock trades at a certain premium relative to net asset value per share.
This can be interpreted as partly reflecting expectations that the company has moved past the post-merger earnings weakness and into a phase of profit normalization.
The operating margin, which was in the low double digits in earlier years, fell to the low single digits in 2025 before recovering, leaving the durability of this margin recovery as a key variable for valuation.
The price-earnings ratio has fluctuated widely across both strong and weak earnings periods historically, and recently appears to be forming in line with the current profit-recovery phase.
Dividend policy continues alongside the balance-sheet improvement effort, but investors appear to focus more on whether the earnings recovery persists than on the dividend level itself.
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
After posting an operating loss and net loss in Q4 2025, the company recorded operating profit in the KRW 2 billion range and positive owner net income in both Q1 and Q2 2026.
Management has attributed this to the effects of brand renewal and curriculum innovation becoming visible starting with the 2026 spring semester. If the Chungdahm English enrollment expansion target is even partially realized, it could support a broader revenue base.
The company proactively strengthened its capital base through an exchangeable bond issued in January 2025, followed by a real estate sale and debt repayment in June that reduced leverage. This balance-sheet improvement is described as a foundation for securing stable cash flow and distributable profit going forward. Indeed, the consolidated debt ratio fell from 389.9% at end-2024 to 296.9% at end-2025.
Creverse has developed AI-based essay and descriptive-answer assessment and feedback technology in-house and participated as a partner company at an industry event hosted by an AI chip and infrastructure firm, expanding collaboration in the edtech space.
It continues to enhance its online learning experience through its metaverse English platform, Bouncy. Such technology investments could serve as a differentiating factor in the premium education market.
Consolidated revenue peaked at KRW 233.49 billion in 2023 before declining for two straight years to KRW 228.17 billion in 2024 and KRW 220.92 billion in 2025. The operating margin, which was in the double digits (11.3%, 10.8%) in 2022-2023, fell sharply to 4.5% in 2024 and just 1.0% in 2025.
Both top-line growth and profitability are under simultaneous pressure from a shrinking school-age population and intensifying market competition.
Operating profit was just KRW 0.20 billion in Q3 2025 before swinging to an operating loss of KRW 2.33 billion and an owner net loss of KRW 4.81 billion in Q4 2025.
While a recovery has followed in 2026, the abrupt reversal the prior year shows that results can swing sharply based on seasonal enrollment timing and one-off costs. A recurrence of similar volatility in future quarters cannot be ruled out.
The 2023 merger with CMS Edu aimed to expand cross-enrollment between English and math businesses, but as the company itself described, the merger, undertaken to boost brand synergy and cross-enrollment, saw a slower-than-expected market response, and a gap between planning and execution amid weakened brand competitiveness contributed to weak performance. Additional time may be required before integration effects fully stabilize.
A declining school-age population and market saturation in private education are structural factors that could constrain the company's revenue base over the long term. Government policies aimed at reducing private education spending or changes to tuition-related regulation also remain potential risks. Whether the shift toward premium segments can offset these structural pressures remains a key question.
The Q4 2025 results demonstrated that operating profit and loss can swing widely depending on quarterly enrollment timing and one-off cost recognition. This volatility makes future quarterly results difficult to anticipate.
Although the debt ratio fell to 296.9% in 2025, liabilities remain large relative to net assets, and the exchangeable bond issued in 2025 could lead to equity dilution if the exchange right is exercised in the future. If balance-sheet improvement efforts are not sustained, financial pressure could build again.
The Q3 2026 earnings release will show whether the first-half profit recovery trend continued into the third quarter.
Chungdahm English's winter-semester enrollment results will indicate whether the enrollment expansion target is being met and whether the brand renewal effect is sustained.
Confirmation of full-year 2026 results and the year-end dividend policy announcement will show the outcome of balance-sheet improvement efforts and the direction of shareholder returns.
Ongoing monitoring of whether the exchangeable bond's conversion right is exercised, and the remaining outstanding balance, is needed to track potential equity dilution.
Creverse endured a slump in 2025, with its operating margin falling to just 1.0%, but has shown signs of a turnaround with two consecutive quarters of profit recovery in Q1 and Q2 2026.
The company attributes this to the combined effects of brand renewal, curriculum innovation, and balance-sheet improvement, and has framed 2026 as a year of restored growth momentum.
At the same time, annual revenue has declined for two consecutive years since 2023, and structural challenges from a shrinking school-age population and intensifying competition remain unresolved. The sharp earnings reversal in Q4 2025 also illustrates substantial quarter-to-quarter volatility.
Balance-sheet improvement through the exchangeable bond issuance and real estate sale is underway, but the debt ratio remains elevated relative to net assets.
Future quarterly results, progress toward the enrollment expansion target, and the durability of balance-sheet improvement are likely to be the key points to watch in evaluating this company.
Report written 2026-09-05 · Data as of 2026-09-04
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