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
D&C Media's 2025 operating profit rebounded sharply from the prior year, but quarterly results remain volatile, making the pace of IP expansion beyond Solo Leveling the key variable to watch.
2025 consolidated revenue reached KRW 85.5 billion with operating profit of KRW 17.3 billion, lifting operating margin from 12.3% in 2024 to 20.3%
Q3 2025 posted a record quarterly revenue of KRW 27.7 billion, but Q4 net profit swung to a loss of KRW 0.8 billion, underscoring quarter-to-quarter volatility
Webtoons account for over half of revenue (51% as of Q2 2026), with Solo Leveling's animation and game expansion serving as the core growth driver
In November 2025 the company disclosed a three-year (2026-2028) shareholder return policy centered on annual share buybacks followed by full cancellation
Shinhan Investment Corp lowered its target price from KRW 17,000 to KRW 12,000 in an August 2026 report, citing an expected Solo Leveling theatrical film returning in 2027-2028
D&C Media was founded in 2012 and listed on KOSDAQ in 2017 as a specialized supplier of web novel and webtoon content. The company produces, publishes, and distributes content through its author-sourcing capability and editorial organization, releasing so-called 'killer contents' as e-books across multiple platforms.
As of Q2 2026 revenue, the business mix was webtoons at 51%, web novels at 33%, and other at 16%, with webtoons making up more than half of sales.
Centered on its flagship IP Solo Leveling, the company continues to pursue an OSMU (One Source Multi Use) strategy that extends web novel and webtoon sources into animation, games, and drama.
Content is distributed through major domestic and overseas platforms including Kakao Page, Kakao Webtoon, Naver Webtoon, and Japan's Piccoma, and the export share of revenue remains meaningful. In terms of competitive landscape, webtoon and web novel content providers such as Kidari Studio, Mr.
Blue, and Finger Story are cited as peers in the same industry. The company has internalized production capacity by consolidating a dedicated webtoon production subsidiary, and continues to reference plans for ancillary businesses tied to IP expansion.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩24.3B | ₩5.3B | 21.9% |
| 2025Q3 | ₩27.7B | ₩6.5B | 23.5% |
| 2025Q4 | ₩15.4B | ₩4.1B | 26.7% |
| 2026Q1 | ₩17.4B | ₩3.5B | 20.1% |
| 2026Q2 | ₩15.9B | ₩2.2B | 14.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩61.2B | ₩5.9B | ₩6.1B | 9.6% | 8.3% | 22.9% |
| 2023 | ₩60.4B | ₩3.5B | ₩4B | 5.8% | 4.9% | 21.8% |
| 2024 | ₩83.5B | ₩10.3B | ₩10.8B | 12.3% | 12.3% | 30.8% |
| 2025 | ₩85.5B | ₩17.3B | ₩8B | 20.3% | 8.4% | 22.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Consolidated 2025 revenue was KRW 85.5 billion, modestly up from KRW 83.5 billion in 2024, while operating profit surged to KRW 17.3 billion from KRW 10.3 billion, lifting the operating margin from 12.3% to 20.3%.
Net profit attributable to owners, however, fell to KRW 8.0 billion from KRW 10.8 billion in 2024, largely reflecting a swing to a net loss of KRW 0.8 billion in Q4 2025.
On a quarterly basis, Q3 2025 delivered a record quarter with revenue of KRW 27.7 billion, operating profit of KRW 6.5 billion, and net profit of KRW 6.4 billion.
Industry data attributes this jump to the webtoon segment, as OSMU expansion of the Solo Leveling IP through animation and game launches drove revenue growth. Immediately after, however, Q4 2025 revenue fell sharply to KRW 15.4 billion and net profit turned negative, highlighting pronounced quarter-to-quarter swings.
Moving into 2026, Q1 revenue was KRW 17.4 billion with operating profit of KRW 3.5 billion and net profit of KRW 2.1 billion, while Q2 revenue was KRW 15.9 billion with operating profit of KRW 2.2 billion and net profit of KRW 2.1 billion — net profit held relatively stable even as revenue and operating profit settled below the Q3 2025 peak.
Over the trailing four quarters (Q3 2025 through Q2 2026), owners' net profit totaled KRW 9.9 billion, a marked recovery compared with full-year net profit of KRW 4.0 billion in 2023 and KRW 6.1 billion in 2022.
The rebound in operating margin from a low of 5.8% in 2023 to the 20% range in 2025 suggests either improved cost structure or a rising mix of higher-margin IP-driven revenue.
South Korea's webtoon and web novel industry, after rapid growth during the pandemic period, is widely viewed as having entered a maturing phase in which platform transaction growth has decelerated, prompting the industry to shift its growth axis toward new title competitiveness and OSMU-driven value creation.
Against this backdrop, Shinhan Investment Corp noted in an August 2026 report that despite holding a leading domestic webtoon IP, the company's market capitalization had fallen below KRW 100 billion amid waning investor interest in KOSDAQ and content-related stocks.
In terms of competitive landscape, webtoon and web novel content providers such as Kidari Studio, Mr. Blue, and Finger Story are also cited, and all of these companies share a structure heavily dependent on supplying content to platforms such as Kakao and Naver.
D&C Media has been regarded as differentiated within the sector for holding the globally successful Solo Leveling IP, though heavy reliance on a single IP remains a common risk factor across the industry.
As media-mix expansion into animation, games, and theatrical films accelerates, content providers' revenue structures are also diversifying from e-book and platform distribution income toward royalty and licensing income.
In a report published on August 24, 2026 titled roughly 'Solo Leveling's theatrical film returning in 2027-2028,' Shinhan Investment Corp set a target price of KRW 12,000, down from KRW 17,000 in its prior report dated February 27, 2026.
The report stated that it expected Solo Leveling theatrical film content to return during 2027-2028 and maintained a buy rating on that basis.
The company disclosed a three-year (2026-2028) shareholder return policy in November 2025, centered on share buybacks followed by full cancellation, stating that shares acquired each year from 2026 through 2028 would be fully cancelled within three months of purchase.
It also stated that the 111,882 treasury shares held at the time were planned for cancellation at the end of 2025. The company added the caveat that specific execution details would be finalized following board resolutions and could change depending on business conditions.
In August 2026, a decision to terminate an existing treasury share buyback trust contract was also disclosed, making it worth monitoring whether a new acquisition plan or a change in execution method follows.
On the IP expansion front, since royalty income from the Solo Leveling animation and game has already contributed to earnings, the progress of follow-up seasons or new media-mix projects stands out as the key variable for the next growth phase.
During periods when expectations for Solo Leveling IP expansion were priced in, the stock traded at price-to-earnings multiples above 20 times, but Shinhan Investment Corp estimated in its August 2026 report that the 2026 expected price-to-earnings ratio stood at around 11 times, characterizing it in its own assessment as an 'oversold' range.
The stock trades at a level roughly in line with book value per share, making it difficult to characterize the current range as carrying a large premium over net assets.
That said, this partly reflects the volatility of recent quarterly results, including the net loss in Q4 2025 and softer revenue in the first half of 2026.
The company's new shareholder return policy is designed around share buybacks and cancellation rather than cash dividends, placing emphasis on per-share value enhancement through a reduced share count rather than dividend-based returns.
On an annual basis, the transition from near break-even profit levels in 2023 to a profit recovery phase in 2025 forms the backdrop for valuation discussions, and the future earnings trajectory is likely to hinge on the execution pace of IP expansion projects.
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 2026-08-21
Solo Leveling already contributed meaningfully to Q3 2025 results through its animation and game launches. Shinhan Investment Corp set a target price citing an expected return of theatrical film content in 2027-2028, suggesting room for follow-up media-mix projects to become additional royalty revenue streams.
With webtoons accounting for more than half of revenue, continued OSMU momentum could serve as a platform for further margin improvement.
Operating margin improved markedly from 5.8% in 2023 to 20.3% in 2025. Full-year 2025 operating profit of KRW 17.3 billion rose sharply from the prior year, suggesting an improved cost structure or a higher mix of high-margin revenue. Whether this profit recovery persists is the key thing to watch in coming quarters.
The three-year policy disclosed in November 2025 adopts a structure of annual share buybacks followed by full cancellation, which, if executed, is expected to enhance per-share value through a reduced share count. The plan also specified cancellation of remaining treasury shares, lending the policy a degree of concreteness.
After a record quarter in Q3 2025, the company swung to a net loss in Q4, and company press releases confirm that both Q1 and Q2 2026 revenue declined year-over-year. Such swings suggest revenue recognition tied to new title and media-mix schedules, which reduces predictability.
With Solo Leveling contributing a substantial share of earnings, any downturn in the IP's popularity cycle or delays in follow-up projects could have an outsized impact on results. Whether new IPs can achieve success on a similar scale has not yet been confirmed.
Shinhan Investment Corp noted in an August 2026 report that market cap fell below KRW 100 billion amid declining interest in KOSDAQ and content-related stocks. If sector-wide sentiment does not recover, earnings improvement at the individual company level alone may not be sufficient to draw back investor attention.
Revenue and profit remain highly dependent on the flagship Solo Leveling IP, so a decline in its popularity or box-office/commercial failure of follow-up media-mix projects could concentrate the impact on results. This risk remains valid until a more balanced growth across a diversified new-title portfolio is confirmed.
Content distribution is concentrated on a small number of major platforms such as Kakao Page, Naver Webtoon, and Piccoma, so changes in fee terms or platform policy could affect profitability. Fixed-cost burdens such as personnel expenses tied to studio-based production also require ongoing management.
While the company disclosed a three-year shareholder return policy, it added the caveat that specific execution details would be finalized following board resolutions and could change depending on business conditions.
An existing treasury share buyback trust contract was terminated in August 2026, so whether future plans are executed as originally announced needs continued monitoring.
Q3 earnings are expected to be disclosed based on the company's past August/November reporting pattern. Watch for whether a rebound similar to Q3 2025 occurs and the direction of net profit.
The first year (2026) of the three-year shareholder return policy is expected to reach the point where buyback and cancellation execution can be checked. Whether a new acquisition plan is announced following the August termination of the prior trust contract is worth watching.
Confirmation is needed on whether a concrete release schedule for the Solo Leveling theatrical film content mentioned by Shinhan Investment Corp materializes.
D&C Media's operating margin rose into the 20% range in 2025, marking a recovery in profitability, with the animation and game expansion of the Solo Leveling IP cited as the driving factor.
However, the swing to a net loss in Q4 2025 and softer revenue in the first half of 2026 mean that quarterly volatility remains high, complicating earnings visibility.
The company disclosed a three-year shareholder return policy in November 2025 promising per-share value enhancement through buybacks and cancellation, though execution carries the caveat that it depends on board resolutions and business conditions.
Shinhan Investment Corp, in an August 2026 report, lowered its target price to KRW 12,000 — down from its prior target — while forecasting a return of theatrical film content in 2027-2028.
On the industry side, both a deceleration in webtoon and web novel market growth and weakened investor sentiment toward content stocks have been noted, suggesting that the next phase of earnings and share price movement will hinge on both individual IP success and a broader recovery in sector interest.
Investors will want to monitor the next quarterly earnings release, actual execution of the shareholder return policy, and the pace of progress on IP expansion projects.
Report written 2026-09-05 · Data as of 2026-09-04
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