PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,200 per share · Prices as of the 2026-10-02 close
Cuckoo Homesys has posted improving recent quarterly results on domestic rental account growth and rising lump-sum sales, but the shrinking share of rental revenue and profitability strain at its overseas units are unfolding at the same time.
Q2 2026 revenue of KRW 318.3 billion and operating profit of KRW 54.0 billion marked a clear improvement from Q2 2025 (revenue KRW 294.0 billion, operating profit KRW 41.7 billion).
Domestic cumulative rental accounts reached 3.28 million in Q1 2026, up 8.3% from 3.03 million a year earlier.
Malaysian subsidiary CUCKOO International (CKI) listed on Bursa Malaysia in June 2025, but its local share price has traded below the IPO price.
The US subsidiary is in a state of negative shareholders' equity and recorded the largest net loss among overseas units.
2025 operating cash flow fell sharply to KRW 8.7 billion from KRW 64.0 billion and KRW 37.6 billion in 2023 and 2024, diverging from the profit improvement trend.
Cuckoo Homesys is a rental-focused home appliance company that offers water purifiers, air purifiers, and bidets through both subscription rental and lump-sum sale formats.
It has recently broadened its product lineup to include food waste disposers, compact ice water purifiers, AI-enabled induction ranges, robot vacuums, mattresses, and massage chairs, expanding the weight of lump-sum sales.
Domestically, the company leverages a nationwide service infrastructure and field maintenance organization to maintain a second-tier brand and technology position in the water purifier market. Its competitors include Coway, SK Magic, and Chungho Nais, with whom it shares the domestic rental market.
Overseas, the company expanded from its 2015 entry into Malaysia to Singapore, India, the United States, and Australia, with the Malaysian subsidiary accounting for the majority of overseas revenue.
The Malaysian unit, CUCKOO International, listed on the Main Market of Bursa Malaysia in June 2025 under the ticker 'CKI.' In the US and Australia, the company is expanding its market presence by diversifying distribution channels.
Structurally, rental revenue has historically provided stable cash flow, while lump-sum sales have recently driven the pace of top-line growth. Over the past several years, the business mix has shifted toward a larger lump-sum sales share and a shrinking rental revenue share.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩294B | ₩41.7B | 14.2% |
| 2025Q3 | ₩291.6B | ₩40.8B | 14.0% |
| 2025Q4 | ₩264.6B | ₩44.3B | 16.7% |
| 2026Q1 | ₩273B | ₩41.3B | 15.1% |
| 2026Q2 | ₩318.3B | ₩54B | 17.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩938.1B | ₩119.9B | ₩114.8B | 12.8% | 16.4% | 28.0% |
| 2023 | ₩954.6B | ₩144.9B | ₩112B | 15.2% | 13.9% | 26.6% |
| 2024 | ₩1.1T | ₩164.8B | ₩122.4B | 15.6% | 13.0% | 32.0% |
| 2025 | ₩1.1T | ₩169.4B | ₩119.5B | 15.1% | 11.0% | 24.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
2025 consolidated revenue reached KRW 1,121.3 billion, up 6.1% from KRW 1,057.2 billion in 2024, extending growth for a second straight year following KRW 954.6 billion in 2023.
Operating profit rose modestly to KRW 169.4 billion in 2025 from KRW 164.8 billion in 2024, with the operating margin improving gradually to 15.1% from 12.8% in 2022.
Net income attributable to owners came in at KRW 119.5 billion in 2025, slightly down from KRW 122.4 billion in 2024, continuing a pattern of fluctuation seen across 2022-2024 (KRW 114.8 billion, KRW 112.0 billion, KRW 122.4 billion).
On a quarterly basis, revenue rose from KRW 294.0 billion and operating profit of KRW 41.7 billion in Q2 2025 to KRW 318.3 billion and KRW 54.0 billion in Q2 2026, with the operating margin climbing from the mid-14% range to the high-17% range over the trailing four quarters.
Owner net income also expanded from KRW 21.6 billion in Q2 2025 to KRW 37.9 billion in Q4 2025 and KRW 38.0 billion in Q2 2026, indicating a growing quarterly net income base.
Notably, in Q3-Q4 2025 net income approached roughly 80% of operating profit, suggesting non-operating factors influenced the bottom line, before that ratio eased to around 70% in Q1-Q2 2026. On the balance sheet, the debt ratio improved each year, falling to 24.8% in 2025 from 32.0% in 2024.
In contrast, operating cash flow declined sharply to KRW 8.7 billion in 2025 from KRW 37.6 billion in 2024 and KRW 64.0 billion in 2023, moving in a different direction from the rise in net income, which warrants attention.
In the domestic home appliance rental market centered on water purifiers and air purifiers, Coway maintains the top position while Cuckoo Homesys competes with SK Magic and Chungho Nais as a challenger.
In the water purifier rental market, Cuckoo Homesys retains a second-tier position built on brand strength and technology, with its nationwide service network serving as a competitive advantage.
The domestic rental account market has entered a mature phase with slower new-account growth, prompting the industry broadly to expand into new categories such as food waste disposers, massage chairs, and mattresses.
Overseas, Korean rental companies have used Malaysia as a beachhead to pursue Southeast Asian and American markets, with Coway, SK Magic, and Cuckoo all operating local subsidiaries there in varying order.
Malaysia's rental market is assessed to have reached a degree of maturity, requiring new product categories and expansion into neighboring markets to sustain further growth.
Industry sources note that overseas rental businesses typically take five to eight years or more to become established and profitable locally, and that Cuckoo Homesys's Singapore, India, and US units are now at a point where they need to demonstrate results numerically.
Currency fluctuations are a direct variable affecting overseas revenue and profitability, with Malaysian ringgit and US dollar translated results contributing to quarterly earnings volatility.
The company has said that net account additions at its Malaysian subsidiary (CKI) began recovering from the second half of 2025 and are turning upward as the product portfolio expands.
It also said US net new accounts, centered on financial lease rentals, rose 36.3% quarter-on-quarter, with air purifier net additions up 32.3% leading the recovery. The company stated it plans to continue aggressive sales activity to expand this net-add trend in the US market going forward.
Domestically, sales growth of new product categories such as food waste disposers, compact ice water purifiers, AI induction ranges, and vacuum cleaners is expected to continue, having been a key driver of recent quarterly revenue growth.
However, whether Malaysia's account recovery translates into an actual revenue rebound, and whether the US unit's profitability improves, are cited as the key questions for the overseas business.
CKI's local share price continues to trade below its IPO price, suggesting the market has yet to assign it a high growth premium.
Given the sharp decline in export rental revenue over the past two years, whether the structural reshaping of the overseas rental business, including a shift toward lump-sum and platform services, continues is another point to watch.
Based on past year-end reference points, the company's price-earnings ratio has repeatedly been observed in the mid-single-digit range, and current valuation reflecting recent earnings improvement appears to sit in a similar area.
The price-to-book ratio stands below 1x, meaning the shares trade at a discount to book net assets. Owner net income fluctuated moderately between roughly KRW 112 billion and KRW 122 billion across 2022-2025, with recent quarterly results showing an improving trend.
The company has maintained cash dividends in recent years, and the continuity of that dividend policy is a point worth watching from a shareholder-return perspective.
The accounting valuation of overseas assets, including the equity value of the Malaysia-listed subsidiary and losses at the US unit, remains a variable that can continue to affect the composition of owner and non-controlling equity.
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 2026-09-04
Cumulative domestic rental accounts reached 3.28 million in Q1 2026, up 8.3% from 3.03 million a year earlier. Sales of new products such as food waste disposers, compact ice water purifiers, and AI induction ranges drove domestic results alongside the expanding account base. This indicates a stable service revenue foundation is being maintained.
Revenue, operating profit, and owner net income all showed a clear improving trend from Q2 2025 through Q2 2026. In particular, the operating margin rose from the mid-14% range to the high-17% range. The 2025 debt ratio also improved to 24.8% from 32.0% a year earlier.
The company stated that net account additions at its Malaysian subsidiary began recovering from the second half of 2025. The US unit also reported that new financial-lease-rental net additions rose 36.3% quarter-on-quarter, with air purifier net additions up 32.3%. The Malaysian subsidiary listed on Bursa Malaysia in June 2025, securing access to the local capital market.
2025 rental revenue fell 11.1% to KRW 276.5 billion from KRW 310.9 billion, while lump-sum revenue rose 12.8% to KRW 804.5 billion. This means the share of stable cash flow generated by rental revenue is relatively shrinking. The shift of growth drivers toward lump-sum sales is a point to monitor from a recurring-revenue perspective.
The US subsidiary had assets of KRW 64.1 billion against liabilities of KRW 71.2 billion, leaving equity at negative KRW 7.1 billion, with a net loss of KRW 5.4 billion, the largest among overseas units. Export rental revenue fell 72.2% over two years, from KRW 85.8 billion in 2023 to KRW 23.9 billion in 2025. The Malaysia-listed subsidiary's local share price also continues to trade below its IPO price.
Operating cash flow declined sharply to KRW 8.7 billion in 2025 from KRW 37.6 billion in 2024 and KRW 64.0 billion in 2023. Over the same period, net income actually improved, widening the gap between reported profit and cash generation. Rental asset investment and expanding financial lease activity are presumed to have weighed on cash flow.
There is ongoing accounting and market-value volatility in overseas assets, including negative equity and net losses at the US subsidiary and a weak share price at the Malaysia-listed subsidiary.
Malaysian ringgit and US dollar translated results are a factor that can sway quarterly results depending on currency movements. Industry views suggest overseas rental businesses typically take five to eight years or more to reach profitability, making near-term improvement difficult to assume.
The continued decline in the rental revenue share raises the possibility of a weakening recurring revenue base. As the domestic rental market has entered a mature phase, account competition with Coway, SK Magic, and Chungho Nais continues.
Whether the expansion of new product categories, such as food waste disposers and massage chairs, can offset the decline in rental revenue remains a challenge.
2025 operating cash flow fell sharply to KRW 8.7 billion from KRW 37.6 billion a year earlier, moving in a different direction from rising profit. Increased rental asset investment or financial lease-related spending could weigh on cash flow.
While the debt ratio is improving, potential impairment factors such as negative equity at overseas subsidiaries warrant continued monitoring.
Q3 2026 (July-September) earnings are expected to be disclosed - a point to check domestic rental account growth and whether the Malaysian and US units' revenue recovers.
It is worth checking through semiannual/business reports whether the US subsidiary's negative equity is resolved and whether its net loss narrows.
Monitor CKI's local earnings releases and share price trend in Malaysia to check whether the post-listing equity value is being reassessed.
The FY2026 annual business report is expected to be disclosed - check the annual rental versus lump-sum revenue mix and whether the dividend policy continues.
Cuckoo Homesys showed a clear improving trend in revenue, operating profit, and owner net income through Q2 2026, and its domestic rental account base has continued to grow steadily.
At the same time, however, the rental revenue share is shrinking as the sales mix shifts toward lump-sum products, while profitability and market-valuation pressures at overseas units, including negative equity at the US subsidiary and a weak share price at the Malaysia-listed unit, are appearing concurrently.
The sharp decline in 2025 operating cash flow versus the prior year, apart from the profit improvement, is a point worth watching. The debt ratio has improved each year, reflecting a strengthening balance sheet.
Whether the expansion of new domestic products and the recovery in overseas net account additions continue, and whether the gap between profit and cash flow narrows, stand out as the key points to observe going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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