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
Revenue more than doubled in 2025 versus the prior year, yet the operating loss widened, and the most recent four quarters have alternated between profit and loss without settling into a stable earnings pattern.
2025 consolidated revenue reached KRW 66.6 billion, more than double the prior year's KRW 32.0 billion, but the operating loss widened to KRW 2.5 billion from KRW 1.6 billion a year earlier.
Across the latest four quarters (Q3 2025 through Q2 2026), the company posted profits in Q3-Q4 2025 before swinging back to losses in Q1-Q2 2026, showing considerable earnings volatility.
Since Korea Rental, a subsidiary of the Dream Security group, became the largest shareholder in March 2024, the company has expanded its business portfolio through the merger with Icentric and the acquisition of a stake in SNU AI Lab.
In May 2026, the company issued exchangeable bonds backed by its holdings of Dream Security shares to fund new businesses in AI-based video security and content protection technology.
The debt ratio stands at a manageable 34.3%, and shares trade at a multiple below the company's net asset value per share.
Digicap was founded in 2000 and listed on KOSDAQ in 2018 as a specialist in digital content protection and broadcast solutions.
Its core businesses are digital rights management (DRM), N-screen, broadcast support services, and ATSC 3.0-based UHD broadcast solutions, and it has expanded into video security AI, metaverse, and digital twin solutions.
Major customers include pay-TV and terrestrial broadcasters such as SK Broadband, SBS, and CMB, and the company has repeatedly been named a top partner by broadcasters over the years.
In 2024 it absorbed Icentric, a Data & Design visualization specialist, to strengthen its platform business, and it also acquired a stake in SNU AI Lab, a computer-vision joint venture affiliated with Seoul National University.
In 2025 the company launched the content authenticity verification platform 'BornID' and acquired Autodesk-related distribution rights, entering the design software distribution business.
In March 2024 the largest shareholder changed to Korea Rental, a subsidiary of the Dream Security group, bringing Digicap into the group as its digital content solutions subsidiary.
The Dream Security group also holds equipment rental unit Korea Rental and embedded security unit SeedCore among its subsidiaries, positioning Digicap as the group's content security and media solutions arm.
Competitively, the company operates in a market of small specialist firms in broadcast and telecom content protection (DRM), and its competitive scope has recently broadened into AI-based video authenticity verification and security.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩18.8B | -₩1.8B | −9.4% |
| 2025Q3 | ₩17.2B | ₩200M | 1.4% |
| 2025Q4 | ₩15.4B | ₩85,317,506 | 0.6% |
| 2026Q1 | ₩14.9B | -₩1.1B | −7.3% |
| 2026Q2 | ₩17.6B | -₩1.2B | −7.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩25.8B | ₩700M | ₩1B | 2.6% | 2.2% | 17.6% |
| 2023 | ₩24.6B | -₩700M | -₩3.3B | −2.7% | −7.8% | 17.5% |
| 2024 | ₩32B | -₩1.6B | ₩1.2B | −5.0% | 2.0% | 29.5% |
| 2025 | ₩66.6B | -₩2.5B | -₩500M | −3.8% | −0.9% | 34.3% |
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
Consolidated revenue in 2025 reached KRW 66.6 billion, more than double the KRW 32.0 billion recorded in 2024, but the operating loss widened to KRW 2.53 billion from KRW 1.6 billion in 2024, producing an operating margin of -3.8%.
Net income attributable to owners swung back to a loss of KRW 0.53 billion, reversing the KRW 1.15 billion profit posted in 2024.
In 2023 the company recorded revenue of KRW 24.6 billion with an operating loss of KRW 0.66 billion and a net loss of KRW 3.29 billion, while 2022 was the only year among the four with an operating profit, at KRW 0.68 billion on revenue of KRW 25.8 billion, an operating margin of 2.6%.
On a quarterly basis, Q2 2025 revenue was KRW 18.75 billion with an operating loss of KRW 1.75 billion and a net loss of KRW 0.80 billion, before turning profitable in Q3 2025 with revenue of KRW 17.22 billion, operating profit of KRW 0.24 billion, and net income of KRW 0.79 billion.
Q4 2025 extended the profitable run with revenue of KRW 15.40 billion, operating profit of KRW 0.09 billion, and net income of KRW 0.24 billion, but Q1 2026 reverted to losses with revenue of KRW 14.90 billion, an operating loss of KRW 1.09 billion, and a net loss of KRW 0.62 billion, a pattern that continued into Q2 2026 with revenue of KRW 17.58 billion, an operating loss of KRW 1.23 billion, and a net loss of KRW 0.86 billion.
Quarterly revenue has thus fluctuated in the KRW 14-19 billion range while operating results have alternated between profit and loss, meaning revenue growth has not translated directly into a more stable earnings structure.
The balance sheet remains relatively sound: the year-end 2025 debt ratio of 34.3% was modestly higher than 2024's 29.5% but still low, while operating cash flow turned negative at KRW -1.09 billion in 2025 from KRW +1.23 billion in 2024.
The broadcast and content security software market in which Digicap operates is undergoing structural change as pay-TV subscriber growth stalls and OTT expands, shifting content protection demand from broadcaster-centric to platform- and cloud-centric models.
A notable regulatory shift is also underway: on January 22, 2026, the AI Basic Act and its enforcement decree took effect simultaneously, giving legal force to labeling obligations for generative AI outputs; general AI-generated content may use machine-readable methods such as watermarks or metadata, while deepfake outputs must carry a visible indication that users can clearly recognize.
The government plans to operate a grace period of at least one year before imposing fines to reduce initial confusion, so actual enforcement is expected no earlier than 2027.
This growing demand for content authenticity and provenance verification aligns with the content authenticity verification platform 'BornID' that Digicap introduced in 2025.
At the group level, parent company Dream Security reported that its consolidated revenue rose 46.1% year over year in Q1 2026 while operating profit fell 36.6%, a result of expanding rental operations combined with one-off costs, illustrating that the broader group, including Digicap, faces a similar challenge of balancing top-line growth against profitability.
Relative to peers, Digicap has a long track record of supplying content protection solutions to major broadcasters, but the market itself remains fragmented among numerous small specialist firms, leaving no single company with a clearly dominant share.
In May 2026 the company issued exchangeable bonds backed by roughly 2.047 million Dream Security shares it holds (2.03% of Dream Security), raising about KRW 9.5 billion, of which KRW 3.5 billion earmarked as general-purpose funds is planned for investment in AI-based video security and digital content protection technology as well as new design-platform businesses.
The bonds carry an exchange period from July 9, 2026 to May 9, 2031, with the exchange price set at KRW 4,640 per share.
In 2025 the company launched the content authenticity verification platform 'BornID' and acquired Autodesk-related distribution rights to enter the design software distribution business, and it also participated in the SET EXPO 2025 broadcast equipment exhibition in Brazil to explore overseas sales channels.
How much these new businesses will actually contribute to revenue remains to be confirmed in upcoming quarterly results.
Given that the last four quarters have alternated between profit and loss, there is room for the operating loss to widen further as new-business investment ramps up, as well as room for improvement if new contracts begin to show up in results. No specific public revenue or profit guidance from the company has been confirmed.
Digicap shares trade at a multiple below the company's net asset value per share, placing the stock in a discount range relative to book value. However, because results over the past several quarters have alternated between profit and loss, earnings-based valuation metrics warrant careful interpretation.
Considered together, the operating profit recorded in 2022 followed by operating losses from 2023 through 2025, and the swing from a 2024 net profit back to a 2025 net loss, make it difficult to conclude that earnings have entered a clearly established recovery phase.
Based on recent annual results, no dividend has been paid. The relatively low debt ratio is a factor worth noting from a balance-sheet stability standpoint.
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
Since joining the Dream Security group in 2024, the company has broadened its business scope from content security into visualization and design platforms through the Icentric merger, the SNU AI Lab stake acquisition, and the Autodesk distribution rights deal. As a result, 2025 revenue more than doubled year over year. This portfolio expansion could broaden the company's revenue base going forward.
The 2025 launch of the content authenticity verification platform 'BornID' equipped the company with a product line addressing the regulatory push for labeling and verifying AI-generated content.
The enforcement of the AI Basic Act in January 2026, which made labeling obligations for generative AI outputs legally binding, has created conditions for greater interest in such verification technology. Whether this product translates into actual revenue, however, still needs to be confirmed in future results.
The year-end 2025 debt ratio of 34.3% is on the low side among small and mid-cap KOSDAQ software companies. The 2026 exchangeable bond issuance also secured additional funding for new businesses. The balance sheet remains relatively unconstrained.
Aside from 2022, the company posted operating losses from 2023 through 2025, and in 2025 the operating loss actually widened even as revenue surged. Of the latest four quarters, Q1 and Q2 2026 reverted to losses, so the sustainability of profitability has not been confirmed. A pattern of revenue growth not being matched by profitability improvement keeps recurring.
While 2025 revenue more than doubled year over year, the earnings figures alone do not make clear whether this growth is organic or largely reflects the consolidation effect of the Icentric merger and other acquisitions.
If the consolidation effect is substantial, a larger revenue base may not improve margins and could even dilute them.
Digicap is a small-cap name even within KOSDAQ, and liquidity may be limited. With additional fundraising such as the 2026 exchangeable bond issuance, monitoring of potential future changes to the share structure or dilution is warranted.
With losses in half of the latest four quarters, quarterly results are difficult to forecast. A recurring pattern of operating results swinging between profit and loss makes it hard for investors to gauge an underlying trend. Similar fluctuations cannot be ruled out in coming quarters.
The largest shareholder is Korea Rental, a subsidiary of the Dream Security group, making Digicap one of several subsidiaries within the group.
Group-level strategy or funding decisions could diverge from minority shareholder interests, and funding structures such as the exchangeable bond, which uses an affiliate's shares as the underlying asset, may entail future changes in shareholding relationships.
The watermark labeling obligation under the AI Basic Act, which took effect in January 2026, remains within a grace period of at least one year before fines are imposed, so the scope of related business opportunities could shift if the enforcement decree or guidelines are adjusted.
In the content security and verification technology field, competitors are also advancing quickly, so whether Digicap can sustain any technological edge remains to be seen.
The Q3 2026 quarterly report is expected around this time, and it will be important to check whether the company breaks out of the losses posted in Q1 and Q2 2026 and whether new-business (AI video security, design platform) revenue begins to show up.
It is worth monitoring the exercise status of exchange requests on the exchangeable bond backed by Dream Security shares, which began July 9, 2026, and how the roughly KRW 9.5 billion raised is actually deployed into the AI video security and content protection new businesses.
Since the AI Basic Act's fine grace period runs for at least one year, it will be important to confirm the actual start of enforcement and how any changes to the enforcement decree or guidelines affect business opportunities related to content labeling and verification.
It is worth checking whether new contract or order disclosures related to BornID, the design platform (Autodesk-related), and AI-based video security emerge, and when these begin to be reflected in revenue and operating profit.
Following its entry into the Dream Security group in 2024, Digicap has broadened its business from content security into visualization, design platforms, and AI-based video security, a shift that underpinned the more-than-doubling of 2025 revenue versus the prior year.
However, that revenue growth did not translate into improved operating profit, and the 2025 operating loss actually widened from the prior year. Looking at the latest four quarters, profits in Q3-Q4 2025 gave way to losses again in Q1-Q2 2026, so the direction of earnings has not yet settled clearly.
On the balance sheet side, the debt ratio remains low, and the 2026 exchangeable bond issuance secured funding for new-business investment. Shares trade at a discount to net asset value, but earnings-based metrics warrant cautious interpretation given the recent volatility in results.
Going forward, the key points to watch will be how much new businesses contribute to revenue and whether quarterly profitability stabilizes.
Report written 2026-09-05 · Data as of 2026-09-04
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