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
KineMaster has lifted its operating margin for five straight quarters through cost efficiency even as revenue keeps shrinking, while new AI-content watermark rules and intensifying competition from global editing and generative-video AI tools loom as the next variables.
Annual revenue has declined for four straight years from roughly KRW 19.6 billion in 2022 to KRW 12.3 billion in 2025, even as the operating margin improved from a deep loss to 7.5% over the same span.
Over the last five quarters (2025Q2-2026Q2), the operating margin trended upward, moving roughly 3.9% to 9.8% to 7.6% to 11.4% to 18.6%.
Net income has swung sharply by quarter, posting profits in the low-to-mid KRW 2 billion range in 2025Q3, 2026Q1 and 2026Q2, while 2025Q2 and 2025Q4 recorded net losses.
Since Korea's AI Framework Act took effect in January 2026, visible watermarking has become mandatory for AI-generated video content including deepfakes, requiring a response from providers of AI editing features.
The company holds equity stakes in outside technology firms such as Hodu AI Lab, making non-operating gains and losses a key driver of quarterly net income volatility.
KineMaster is an application software company whose core business is a mobile video editing app. Most of its revenue comes from the KineMaster video editing app through subscriptions, advertising, and streaming of music assets.
Through its Spain-based subsidiary NEXPLAYER SDK, S.L., the company also runs a global media technology consulting business. Beyond its flagship KineMaster app, the product lineup includes the short-form creation app Springo and the animation tool AniToon, aiming to provide a total solution for mobile video production.
Cumulative downloads are reported to have surpassed 720 million, with monthly active users exceeding 13 million. The company is estimated to hold roughly a 5% share of the global video editing tool market.
The competitive landscape mixes large free editing apps with emerging generative-AI video tools, making feature and price competition a constant feature of the market. The company has also diversified its portfolio by taking equity stakes in AI semiconductor-related technology firms such as Hodu AI Lab.
More recently, strengthening AI-powered mobile video editing services has been presented as a strategic direction.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩3.1B | ₩100M | 3.9% |
| 2025Q3 | ₩3B | ₩300M | 9.8% |
| 2025Q4 | ₩3B | ₩200M | 7.6% |
| 2026Q1 | ₩2.8B | ₩300M | 11.4% |
| 2026Q2 | ₩2.7B | ₩500M | 18.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩19.6B | -₩16.4B | -₩15.3B | −83.5% | −161.0% | 71.2% |
| 2023 | ₩16.8B | ₩1.9B | ₩2.6B | 11.1% | 15.7% | 17.8% |
| 2024 | ₩13.3B | ₩600M | ₩4.4B | 4.4% | 20.0% | 10.6% |
| 2025 | ₩12.3B | ₩900M | ₩3.4B | 7.5% | 13.5% | 8.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue fell for four straight years, from about KRW 19.59 billion in 2022 to KRW 16.77 billion in 2023, KRW 13.33 billion in 2024, and KRW 12.26 billion in 2025.
Operating profit, however, swung from a loss of roughly KRW 16.36 billion in 2022 (operating margin of -83.5%) to a profit of about KRW 1.86 billion in 2023 (11.1%), then eased to KRW 592 million in 2024 (4.4%) before improving again to KRW 925 million in 2025 (7.5%).
Net income attributable to owners moved from a loss of about KRW 15.35 billion in 2022 to profits of KRW 2.62 billion in 2023 and KRW 4.40 billion in 2024, before narrowing to KRW 3.41 billion in 2025.
On a quarterly basis, 2025Q2 revenue was about KRW 3.09 billion with operating profit of KRW 121 million (roughly 3.9% margin) and a net loss of KRW 433 million.
In 2025Q3, revenue dipped slightly but operating profit rose to KRW 295 million (9.8%) and net income jumped to about KRW 2.08 billion. 2025Q4 operating profit was KRW 228 million (7.6%), but the quarter slipped back into a net loss of about KRW 48 million.
In 2026Q1 and 2026Q2, revenue fell further to about KRW 2.83 billion and KRW 2.72 billion respectively, yet operating profit expanded to KRW 324 million (11.4%) and KRW 506 million (18.6%), with net income of about KRW 2.63 billion and KRW 2.52 billion.
The fact that the operating margin improved for five consecutive quarters despite falling revenue points to cost-structure efficiency driving results, while sharp quarter-to-quarter swings in net income suggest non-operating items have amplified volatility.
Operating cash flow was about KRW 2.93 billion in 2025, remaining solid relative to net income and indicating continued cash-generating capacity.
The mobile video editing market is generally viewed as continuing to grow, driven by the expansion of short-form content consumption on YouTube Shorts, TikTok and Instagram Reels, and by broader monetization avenues for individual creators.
Competition, however, is intense, with large free editing apps and newer generative-AI video tools simultaneously vying for market share.
More recently, text- and image-based video generation AI such as OpenAI's Sora and Kling AI have emerged, blurring the line with traditional editing apps, and KineMaster has at times been cited as a beneficiary when such themes gain attention.
In Korea, the AI Framework Act that took effect in January 2026 made visible watermarking mandatory for content produced using generative AI, with deepfake videos required to display an AI-generated notice from start to finish.
There is, however, criticism that authorities lack grounds to prevent users from damaging or removing such marks, and the National Assembly is discussing amendments to the Network Act to add prohibitions against tampering with or deleting these disclosures.
This regulatory shift could impose a technical compliance burden on providers of AI video editing features, while also creating an opportunity to differentiate services around content authenticity.
Relative to peers, the company's position looks comparatively strong based on download volume and an estimated market share figure, but the continued shrinkage of revenue scale raises concerns about growth stagnation.
The company has presented strengthening AI-powered mobile video editing services as its strategic direction. Whether the operating margin improvement seen over the last five consecutive quarters can be sustained is the key point to watch in upcoming results.
The company continues to hold equity stakes in outside technology firms such as Hodu AI Lab, meaning changes in the value of these holdings could continue to affect non-operating income going forward.
With discussions on amending the Network Act underway following the January 2026 implementation of the AI Framework Act, how the company responds as watermark-related technical standards are finalized bears watching.
As the global short-form content ecosystem expands alongside the proliferation of generative-AI video tools, which trend the company can better capture in terms of user growth is likely to shape its medium-to-long-term business direction. No separate revenue guidance or capacity expansion plans have been confirmed.
The company moved from a large loss in 2022 to three consecutive years of profit starting in 2023, showing an improving earnings structure. Recent quarterly net income, however, has swung significantly due to non-operating items, making it difficult to read the earnings trend in a straight line.
The share price appears to be trading without a large premium or discount relative to net asset value. The company has not paid a cash dividend recently, so the sustainability of the earnings recovery, rather than dividend appeal, remains the central variable for investors to weigh.
Given that trading multiples have fluctuated as the company cycled between periods of weak and recovering performance, how the market values the stock could continue to shift depending on future earnings results.
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
The operating margin has risen for five consecutive quarters, reaching 18.6% in 2026Q2. This suggests cost-structure efficiency has been working effectively even as revenue declines. If this trend continues, profitability relative to revenue scale could see further room for improvement.
The company has set strengthening AI-powered mobile video editing services as its business direction. There have been instances where the company was cited as a beneficiary as generative video AI tools like OpenAI's Sora drew thematic attention. Whether it can roll out new features responding to this technology trend is a key point for future user growth.
The company holds equity stakes in AI semiconductor-related technology firms such as Hodu AI Lab. These investments are interpreted as an outside-core revenue source that contributed to net income gains in some recent quarters. Changes in the value of these stakes could continue to affect non-operating income going forward.
Annual revenue has declined for four straight years, from roughly KRW 19.6 billion in 2022 to KRW 12.3 billion in 2025. The core app's user base does not appear to be translating into revenue growth. If the revenue decline persists, cost efficiency alone may not be enough to sustain profitability gains.
The company posted net losses in 2025Q2 and 2025Q4, while net income rose sharply in other quarters on the back of non-operating gains. This variance suggests the core business alone struggles to generate stable profit. If the value of investment assets declines, the reverse swing in earnings is also possible.
As large free editing apps and generative-AI video tools spread simultaneously, the position of existing subscription-based editing apps could narrow. The new watermark disclosure requirement under the AI Framework Act may also increase feature development and compliance burdens. If related regulations are tightened further, additional compliance costs could arise.
Korea's AI Framework Act, effective January 2026, made visible watermarking mandatory for AI-generated video content including deepfakes. Discussions on amending the related Network Act are underway in the National Assembly, raising the possibility that regulation could tighten further. This could affect the product roadmap of a company providing AI editing features.
Recent quarterly net income has swung between profit and loss depending on non-operating items. Valuation changes in non-operating assets such as equity investments could continue to significantly affect results. This reduces the predictability of quarterly earnings.
Annual revenue has declined for four consecutive years, reflecting stagnant top-line growth. If competition with global free editing apps and generative-AI video tools intensifies further, user attrition cannot be ruled out. If the revenue base shrinks further, cost efficiency alone may not be sufficient to defend profitability.
2026Q3 (July-September) earnings are due to be disclosed, providing a chance to check whether the five-quarter operating margin improvement trend continues and how dependent net income remains on non-operating items.
Progress on National Assembly review of AI Framework Act subordinate legislation and the proposed Network Act amendment (including provisions against tampering with or deleting watermarks) warrants monitoring.
Further news on equity-investment targets such as Hodu AI Lab, and how changes in their valuation affect non-operating income, should be checked.
The pace of adoption of generative video AI services such as OpenAI's Sora and Kling AI, and whether the company responds with new features, merit ongoing monitoring.
KineMaster has emerged from a large 2022 loss to post three consecutive years of profit, showing signs of a recovering earnings structure. The five straight quarters of improving operating margin indicate that cost efficiency has been effectively translating into results.
That said, annual revenue has declined for a fourth consecutive year, and quarterly net income has swung widely due to non-operating items, leaving the core business's ability to generate stable profit still to be proven.
The watermark disclosure mandate under the AI Framework Act, along with related legislative amendment discussions, is emerging as a new compliance variable for a company providing AI video editing features.
The fact that changes in the value of equity investments such as Hodu AI Lab can continue to affect non-operating income is another factor to weigh when interpreting results. The next quarterly earnings release and follow-up regulatory measures stand out as the key variables for gauging future direction.
Report written 2026-09-05 · Data as of 2026-09-04
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