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
As ad and film VFX revenue continues to soften, new businesses such as the King of Kings IP exhibition and Kima Systems' hardware infrastructure operations are emerging as key variables for the earnings trajectory ahead.
2025 revenue fell to KRW 36.7bn from KRW 50.1bn a year earlier, while the operating loss widened again to KRW 19.0bn
The loss-narrowing trend seen in late 2025 reversed in the first quarter of 2026, underscoring high quarter-to-quarter volatility
The King of Kings IP exhibition 'The Greatest Love' has continued to draw attendance, expanding the company's IP-based offline content business
Subsidiary Kima Systems has secured new hardware infrastructure wins including KBO intercom systems and IDC storage projects
Consecutive net losses have shrunk equity from KRW 122.96bn in 2022 to KRW 53.6bn in 2025, with operating cash flow negative every year in the window
GIANTSTEP is an AI-based real-time content solutions company founded in 2008 that started in advertising and film/drama VFX and has since expanded into real-time content. The advertising VFX and video VFX segments operate on an order-based model, planning and producing visual output for a range of clients.
The newer real-time content segment covers virtual production solutions, virtual human solutions, enterprise real-time engine solutions such as for the automotive sector, interactive media art, and XR performance solutions, delivered end-to-end through the company's own 'A.I-One Studio' virtual stage.
As of the first quarter of 2025, content production accounted for 81.64% of revenue, with video planning and production at 14.97% and equipment-related sales making up the remainder.
Consolidated subsidiaries include V Ranger, Silo Lab (exhibition space business), GIANTSTEP Studios Inc. in the United States, Big-in-square, and Kima Systems, covering exhibitions, webtoon-based drama production, and broadcast equipment/hardware infrastructure respectively.
Notable references include real-time 3D content applied to Hyundai Motor Group's next-generation infotainment system 'Pleos Connect,' video production for the Las Vegas MSG Sphere, and exhibition content built on the King of Kings animated IP.
Since winning an Epic Games MegaGrant in 2019, the company has pursued virtual human commercialization through the Naver co-developed virtual human 'Isol' and the 'Seed' virtual human unveiled in 2024.
Within the domestic VFX industry, the company is known for relatively low turnover among its skilled production staff since founding, and it holds proprietary patents in real-time virtual character solutions that it positions as technical differentiation versus competitors.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩7.8B | -₩8.4B | −107.9% |
| 2025Q3 | ₩9B | -₩4.9B | −54.0% |
| 2025Q4 | ₩9.9B | -₩1.5B | −15.1% |
| 2026Q1 | ₩9.3B | -₩5.6B | −59.7% |
| 2026Q2 | ₩6.6B | -₩2.8B | −43.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩40.6B | -₩17.9B | -₩12.7B | −44.0% | −10.6% | 19.0% |
| 2023 | ₩42.3B | -₩26.1B | -₩24.6B | −61.6% | −25.8% | 28.9% |
| 2024 | ₩50.1B | -₩17.3B | -₩27.1B | −34.5% | −39.7% | 30.8% |
| 2025 | ₩36.7B | -₩19B | -₩17B | −51.7% | −32.6% | 30.6% |
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 results are characterized by stagnant revenue and persistent large losses. Revenue rose from KRW 40.6bn in 2022 to KRW 42.3bn in 2023 and KRW 50.1bn in 2024, but reversed to KRW 36.7bn in 2025.
The operating loss widened from KRW 17.9bn in 2022 to KRW 26.1bn in 2023, narrowed to KRW 17.3bn in 2024, then widened again to KRW 19.0bn in 2025. Net loss attributable to owners grew from KRW 12.7bn in 2022 to KRW 24.6bn in 2023 and KRW 27.1bn in 2024, before narrowing to KRW 17.0bn in 2025.
On a quarterly basis, the operating loss steadily narrowed from KRW 8.4bn in the second quarter of 2025 to KRW 4.9bn in the third quarter and KRW 1.5bn in the fourth quarter, but widened again to KRW 5.6bn in the first quarter of 2026 as revenue also declined year-on-year to KRW 9.3bn.
According to WiseReport, first-quarter 2026 consolidated revenue fell 7.6% year-on-year while the operating loss grew 30.9% and net loss 33.9%, with declining advertising VFX, video VFX, and real-time content revenue and the cyclicality of the advertising market cited as drivers.
In the second quarter of 2026 revenue fell further to KRW 6.6bn, the lowest level in the observation window, though the operating loss narrowed to KRW 2.8bn from the prior quarter.
Operating cash flow has remained negative every year, at KRW -7.5bn in 2022, KRW -13.3bn in 2023, KRW -8.2bn in 2024, and KRW -12.4bn in 2025, and the cumulative effect of these losses has reduced equity from KRW 122.96bn in 2022 to KRW 53.6bn in 2025.
The VFX and real-time content industry that GIANTSTEP operates in is underpinned by growth in global advertising spending and the digital content market. Citing Statista, the company's quarterly report estimates that global advertising spending will rise steadily from USD 942.5bn in 2022 to USD 1.293tn by 2027.
The same report, citing the Software Policy Institute, projects the digital content market that includes video VFX to grow at an average annual rate of 11.1% through 2027.
Domestically, KOBACO's 2025 broadcast and communications advertising expenditure survey projects the Korean advertising market to grow 3.8% from KRW 17.27tn in 2025 to KRW 17.94tn in 2026, with online advertising accounting for 62.1% of the total.
However, GIANTSTEP's advertising VFX and video VFX segments are sensitive to advertising cycles and client budget swings, so industry-wide growth does not always translate directly into order flow for the company.
In terms of competitive positioning, the company presents itself as the only domestic VFX firm to have passed Disney's audit (2016), Netflix's 4K technology test (2018), and TPN security evaluation (2019), alongside proprietary patents in real-time virtual character solutions.
In the real-time content and virtual production space, relatively few listed domestic peers offer a comparable business model, giving the company a somewhat distinct position, though competition with global studio and engine technology providers continues.
The company is attempting to expand from an order-based advertising and video VFX business into a model that combines exhibitions, IP, and immersive content.
The experiential exhibition 'The Greatest Love,' built on the King of Kings IP, opened at Lotte Mall Gimpo Airport on October 31, 2025 and continued to draw attendance; according to company IR materials as of June 2026, the run was further extended through August.
Subsidiary Kima Systems stated, per a June 2026 announcement, that it had secured new achievements in hardware infrastructure including KBO intercom systems and IDC storage.
Two music videos produced at Namsan XR Studio won consecutive awards at a European international music video awards event, externally validating the company's XR and virtual production technology.
The game project 'KAMPERS,' a full-3D mobile game, remains in development, having launched on a limited basis in markets such as the Philippines, with global expansion still to be determined.
The company is also pursuing enterprise (B2B) real-time engine solutions in parallel, as illustrated by the application of real-time 3D content to Hyundai Motor Group's 'Pleos Connect' infotainment system.
How quickly these new businesses translate into actual revenue and profitability improvement remains the key variable for the earnings trajectory ahead.
The company has recorded a net loss in each of the last four fiscal years, so a price-to-earnings ratio cannot be calculated, and valuation discussion tends to center on the share price relative to net asset value.
The current share price trades below net asset value per share, placing it at a discount relative to book value. Dividends have not been paid in recent years, making yield-based comparisons of limited use.
The debt ratio rose somewhat from 19.0% in 2022 to 30.6% in 2025 but remains at a relatively low level, suggesting a stable financial leverage position.
However, because sustained net losses have been shrinking the equity base itself, interpreting the share price relative to net assets also requires factoring in the declining trend of that equity denominator.
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 loss narrowed for three consecutive quarters, from KRW 8.4bn in the second quarter of 2025 to KRW 4.9bn in the third quarter and KRW 1.5bn in the fourth quarter. In the second quarter of 2026 the operating loss also fell to KRW 2.8bn, roughly half the prior quarter's KRW 5.6bn. Even as revenue has shrunk, a recurring pattern of cost management aimed at containing losses is visible.
The experiential exhibition 'The Greatest Love,' built on the King of Kings IP, has continued to draw attendance and was extended through August. This represents a new B2C offline content revenue stream distinct from the company's traditional order-based advertising and video VFX business. New hardware infrastructure wins at subsidiary Kima Systems are also broadening the revenue base.
The company has secured references with major clients and platforms, including Hyundai Motor Group's 'Pleos Connect' and the Las Vegas MSG Sphere.
Consecutive awards for Namsan XR Studio-produced music videos at a European international music video awards event serve as external recognition of its XR and virtual production capabilities. These references could be leveraged in future enterprise real-time solution sales efforts.
2025 revenue fell to KRW 36.7bn from KRW 50.1bn in 2024, and second-quarter 2026 revenue dropped to KRW 6.6bn, the lowest level in the observation window. Because loss narrowing has relied mainly on cost reduction rather than revenue growth, questions remain about its sustainability.
The loss-narrowing trend that persisted through the fourth quarter of 2025 reversed sharply in the first quarter of 2026, with the operating loss widening to KRW 5.6bn. According to WiseReport, first-quarter 2026 revenue fell 7.6% year-on-year while the operating loss and net loss grew 30.9% and 33.9%, respectively.
This indicates the company remains in a period of significant quarter-to-quarter swings rather than a consistent improvement trend.
Operating cash flow was negative every year from 2022 through 2025, widening to KRW -12.4bn in 2025. The cumulative effect of net losses has cut equity by more than half, from KRW 122.96bn in 2022 to KRW 53.6bn in 2025. If the absence of cash generation persists, the need for additional funding could increase.
Advertising VFX and video VFX revenue is directly affected by advertising market conditions and client budget cycles. Although the Korean advertising market is projected to grow 3.8% in 2026, order-based revenue could still contract independently of industry growth if individual clients cut advertising spending.
WiseReport also cited the cyclical sensitivity of the advertising market as a factor behind the deterioration in first-quarter 2026 results.
New businesses such as exhibitions, gaming, and enterprise solutions remain at an early stage with revenue scale not yet proven. If a follow-up exhibition or business model does not materialize after the King of Kings exhibition run ends, its revenue contribution could prove to be a one-off event.
If the global launch of the KAMPERS game is delayed, the anticipated revenue diversification effect could also be pushed back.
Sustained net losses have caused equity to shrink each year, and operating cash flow has been negative for four consecutive years. If losses continue, the need for additional external funding such as further capital raises could grow, potentially diluting existing shareholders.
The debt ratio remains at a low level for now, but a widening of losses could also weaken financial soundness indicators.
The regular third-quarter earnings release will show whether revenue and operating profit/loss continue the loss-narrowing trend seen in the second quarter of 2026.
Whether a follow-up exhibition or IP business plan is announced after the King of Kings exhibition 'The Greatest Love,' which was extended through August, ends will indicate the durability of the IP-based revenue stream.
The global launch schedule for the 'KAMPERS' game project and whether initial revenue is recognized should be monitored continuously through IR disclosures and press materials.
It is worth checking whether subsidiary Kima Systems' new hardware infrastructure orders continue beyond June 2026, and how much this segment contributes to consolidated results.
Giantstep continues its efforts to diversify revenue sources from its order-based business centered on advertising and film VFX toward areas such as the King of Kings IP exhibition, games, and hardware infrastructure.
The loss-narrowing trend seen in Q3 and Q4 2025 widened again in Q1 2026, indicating that earnings improvement has yet to settle into a consistent trend.
Revenue fell from KRW 50.09 billion in 2024 to KRW 36.73 billion in 2025, and dropped further to KRW 6.55 billion in Q2 2026, marking the lowest level in the observation period.
On the other hand, the success of the King of Kings exhibition, new achievements in KimaSystems' hardware infrastructure, and awards at a European ceremony have been confirmed as tangible outcomes of the new business initiatives.
However, with continued net losses, equity capital has been reduced to less than half, and operating cash flow has remained negative every year, leaving the pace at which the new businesses translate into actual revenue and improved cash generation as the key variable that will determine future earnings trends.
Investors need to check whether this trend continues through the upcoming Q3 results and subsequent disclosures related to the new businesses.
Report written 2026-09-05 · Data as of 2026-09-04
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