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
4By4 has steadily narrowed its operating losses on stronger content-production and exhibition orders, while cultivating its new AI image-enhancement solution 'PIXELL' as its next growth driver.
The annual operating margin loss narrowed for four straight years, from -64.8% in 2022 to -21.9% in 2025.
In Q2 2026, consolidated revenue reached KRW 11.13 billion with an operating loss of KRW 0.60 billion, a marked narrowing from prior quarters.
The board approved a roughly KRW 30 billion rights offering in September 2025, issuing new shares equal to 27.75% of the total, with a large portion of proceeds directed to the new AI Pixel business.
Game subsidiary LoLQ turned profitable in H1 2026 with an operating profit of KRW 0.16 billion.
Accumulated losses have reduced equity while the debt ratio climbed from 13.7% in 2022 to 88.6% in 2025, adding financial strain.
4By4's business is organized around a content production division making ultra-high-definition and new-media content, an exhibition division supplying immersive experiential content to local governments and public institutions, and game subsidiary LoLQ, which handles game IP distribution and operation.
According to the company's Q1 2026 quarterly report, its core operations are personnel- and software-driven, with no physical production facilities, spanning content production and immersive realization, ultra-high-definition video platform distribution, and game IP content operation.
The exhibition division has secured numerous projects commissioned by local governments and public institutions, including the Gimhae Kim Young-won Art Museum, the Gyeongsangbuk-do Office of Education's early childhood education promotion center, and Ulsan's The Wave media facade project.
The content production division has expanded revenue from international-event related productions such as CES-linked projects.
More recently, the company has been scaling a new business around its self-developed image-quality enhancement AI solution 'PIXELL,' commercialized in SaaS, API, and on-premise forms for B2B and B2C markets.
PIXELL has been registered on the Amazon Web Services Marketplace and supplied to OTT platform Waave, where it was used in quality-enhancement projects for past dramas.
Overseas, the company has conducted proof-of-concept tests with major media companies in Japan and the United States, including SoftBank, Fuji TV, Shochiku, and Televisa Univision.
For NPU hardware, it has adopted domestic chipmaker FuriosaAI as a partner, working to lighten and optimize the on-premise version of PIXELL.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩9.1B | -₩89,395,571 | −1.0% |
| 2025Q3 | ₩8.5B | -₩2.1B | −24.2% |
| 2025Q4 | ₩9.3B | -₩2.7B | −28.4% |
| 2026Q1 | ₩7.3B | -₩2.5B | −34.1% |
| 2026Q2 | ₩11.1B | -₩600M | −5.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩16.2B | -₩10.5B | -₩8.8B | −64.8% | −15.4% | 13.7% |
| 2023 | ₩33.8B | -₩16.3B | -₩19.4B | −48.2% | −47.3% | 58.7% |
| 2024 | ₩33.3B | -₩13.9B | -₩11.5B | −41.7% | −38.8% | 93.4% |
| 2025 | ₩33.7B | -₩7.4B | -₩10.4B | −21.9% | −25.9% | 88.6% |
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
4By4's consolidated revenue jumped from KRW 16.19 billion in 2022 to KRW 33.75 billion in 2023, then held in the low KRW 30-billion-won range at KRW 33.28 billion in 2024 and KRW 33.71 billion in 2025.
Over the same period, the operating loss narrowed each year: KRW -10.50 billion (margin -64.8%) in 2022, KRW -16.26 billion (-48.2%) in 2023, KRW -13.89 billion (-41.7%) in 2024, and KRW -7.40 billion (-21.9%) in 2025.
Net loss attributable to owners also shrank from KRW -19.42 billion in 2023 to KRW -11.51 billion in 2024 and KRW -10.36 billion in 2025.
Quarterly, revenue reached KRW 9.13 billion with an operating loss narrowed to KRW -0.09 billion in Q2 2025, but losses widened again to KRW -2.05 billion in Q3 and KRW -2.65 billion in Q4, and Q1 2026 posted revenue of KRW 7.33 billion with an operating loss of KRW -2.50 billion, underscoring clear quarter-to-quarter volatility tied to project-based revenue recognition timing.
In Q2 2026, revenue rose to KRW 11.13 billion while the operating loss and net loss attributable to owners narrowed sharply to KRW -0.60 billion and KRW -0.56 billion, respectively.
The company disclosed that standalone H1 2026 revenue reached KRW 9.17 billion, up 50.8% year-on-year, while consolidated H1 revenue rose 16.1% to KRW 18.46 billion.
Management attributed the improvement to expanded revenue recognition from major content-production and exhibition-division projects, and separately noted that subsidiary LoLQ's revenue grew 41% year-on-year with an operating profit of KRW 0.16 billion, marking its swing to profitability.
Media reports indicated the company also achieved an EBITDA-basis turnaround in Q2 2026.
Operating cash flow, however, has stayed negative in most years after a slight positive of KRW 0.12 billion in 2022, posting KRW -10.21 billion in 2023, KRW -2.63 billion in 2024, and KRW -2.62 billion in 2025, reflecting constrained cash generation tied to the project-based revenue structure.
The AI-driven image-enhancement and upscaling market is considered a growth area, driven by rising demand for high-resolution content across OTT, broadcast, security, and creator platforms alongside the need to cut transmission and storage costs.
South Korea's push to deploy domestically made neural processing units (NPUs) in its national AI computing center reflects a broader effort to build out the domestic AI semiconductor ecosystem, and 4By4 sits within that ecosystem through its partnership with NPU maker FuriosaAI to enhance the on-premise version of PIXELL.
The exhibition and immersive-content market is heavily weighted toward public-sector orders tied to local government and public institution cultural-facility investment, making it relatively less cyclical but prone to quarterly revenue concentration around budget execution timing.
Competition in global upscaling and encoding technology is intense, with large cloud and media-technology companies already active in the space; 4By4 seeks differentiation through a convolutional-neural-network-based inference approach rather than generative AI, emphasizing preservation of original image detail.
Through the Ministry of Science and ICT's large-to-small enterprise partnership program, the company conducted technology proof-of-concept tests with major Japanese and U.S. media companies, and stated plans to expand participation in AI-related government support programs from 2026 onward.
In the content production segment, revenue has been contributed by projects tied to major events such as the Consumer Electronics Show (CES), a structure that tends to concentrate revenue around specific event timing.
4By4 stated it plans to concentrate roughly KRW 19.1 billion of the approximately KRW 30 billion raised via its September 2025 rights offering into upgrading its new AI business.
The company set a goal of newly targeting the real-time content market—such as sports broadcasts and live performances—through 'AI Pixel Stream,' a real-time quality-enhancement model moving from pilot testing toward commercialization in the second half of the year.
It has separately unveiled 'AI Pixel Detailer,' a creator-focused model targeting the post-processing market that converts 1080p footage into 4K-level output.
The company also flagged planned investment in IDC consolidation and expansion, strengthening content delivery network (CDN) and cloud management service provider (MSP) partnerships, and expanding its sales network through a U.S. subsidiary.
It further indicated plans to pursue PIXELL integration and commercialization timed to the launch of FuriosaAI's second-generation NPU, 'Renegade.' A company representative said growth momentum is expected to strengthen in the second half as core-business order competitiveness, subsidiary earnings recovery, and expansion of the new AI solution market converge.
The exhibition division reportedly secured about KRW 11.3 billion in new public-sector content-exhibition orders in H1 alone, suggesting continued revenue visibility based on carried-over order backlog.
4By4 has posted a net loss in every fiscal year since its listing, making traditional earnings-based valuation metrics difficult to apply.
The stock trades at a level that carries a premium to book value per share, which can be interpreted as reflecting growth expectations commonly seen among KOSDAQ content and AI technology names. The company pays no dividend, limiting any dividend-based investment appeal.
Combined revenue over the most recent four quarters (Q3 2025 through Q2 2026) exceeded prior full-year revenue levels, though the pace of earnings improvement has yet to catch up with revenue growth.
The 27.75% increase in shares outstanding from the September 2025 rights offering acts as a dilutive factor across per-share metrics. How the market re-rates the stock going forward may hinge on the degree to which the AI Pixel business's commercialization results become visible.
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 loss narrowed for four consecutive years, from -64.8% in 2022 to -21.9% in 2025. In Q2 2026, the operating loss shrank to KRW 0.60 billion, and reports indicated an EBITDA-basis turnaround.
Expanded revenue recognition from content-production and exhibition-division projects has been cited as driving the improvement.
The company has commercialized its PIXELL image-enhancement solution in SaaS, API, and on-premise forms, broadening applications across OTT, creator, security, and medical use cases.
It has registered on the AWS Marketplace, supplied the OTT platform Waave, and conducted technology proof-of-concept tests with major Japanese and U.S. media companies. A substantial portion of the KRW 30 billion rights-offering proceeds is earmarked for R&D and overseas sales-network expansion in this business.
The exhibition division has continued to secure immersive-content orders from local governments and public institutions, booking about KRW 11.3 billion in new orders in H1 alone. Game subsidiary LoLQ grew revenue 41% in H1 and posted an operating profit of KRW 0.16 billion, turning profitable. This diversification creates a structure in which weakness in one segment can be partly offset by others.
4By4 has posted a net loss every fiscal year since listing, with cumulative net losses attributable to owners sizable over 2022-2025. As a result, equity attributable to owners fell from KRW 56.92 billion in 2022 to KRW 39.93 billion in 2025, while the debt ratio jumped from 13.7% to 88.6% over the same period. Operating cash flow was also negative for three straight years from 2023 to 2025.
Revenue and earnings swing significantly by quarter depending on the timing of project revenue recognition. A representative example is the operating loss narrowing to KRW 0.09 billion in Q2 2025 before widening again to KRW -2.05 billion and KRW -2.65 billion in Q3 and Q4. This volatility makes it difficult to read any single quarter's improvement as a definitive trend shift.
AI Pixel Stream is still transitioning from pilot to commercial stage, and revenue contribution has not yet materialized at scale. Reliance on a KRW 30 billion rights offering to fund the initiative suggests the existing business alone did not generate sufficient capital for the new venture.
Most overseas partnerships remain at the proof-of-concept stage, and the timing and scale of any conversion into actual contracts and revenue have not yet been confirmed.
The company increased shares outstanding by 27.75% through a KRW 30 billion rights offering in September 2025. If the new business fails to generate revenue as planned, additional capital-raising needs could arise. Repeated rights offerings could lead to further dilution for existing shareholders.
The Korea Exchange designated 4By4 as an investment-caution stock on February 20, 2026, after its closing price rose more than 60% over the prior five trading days. Such sharp swings have at times been linked to short-term flows tied to NPU and AI-semiconductor themes. If the market-alert level escalates to investment-warning or investment-risk status, trading could be halted.
The timing and outcome of new products such as AI Pixel Stream transitioning from pilot to commercialization remain uncertain. The upscaling and encoding technology market includes numerous large cloud and media-technology competitors, creating technology and pricing pressure.
Any delay in the launch schedule of NPU partner FuriosaAI's second-generation chip could also affect commercialization plans for the on-premise version of PIXELL.
The Q3 quarterly report disclosure should be checked to see whether the sequential improvement in revenue and operating loss continues from Q2.
Whether AI Pixel Stream transitions from pilot to commercial contracts, and whether the Japan and U.S. partnerships convert into actual revenue, are points to monitor.
The launch timing of FuriosaAI's second-generation NPU 'Renegade,' and the resulting PIXELL integration and commercialization outcomes, should be tracked.
This is the point to check whether the operating-margin-loss improvement trend continued for full-year 2026 and whether the deployment of rights-offering proceeds is reflected in results.
Despite a net-loss structure persisting since its listing, 4By4 has narrowed its operating margin loss for four consecutive years, and Q2 2026 saw a notably smaller loss along with reports of an EBITDA-basis turnaround.
The public-sector order base in its core content-production and exhibition businesses, along with the turnaround at game subsidiary LoLQ, can be viewed as positive signs of diversification.
At the same time, the company funded its new business through a KRW 30 billion rights offering in September 2025, which left a dilutive legacy of a 27.75% increase in shares outstanding.
New initiatives such as AI Pixel Stream remain in the pilot-to-commercialization transition, and most overseas partnerships are still at the technology proof-of-concept stage, so the timing of any actual revenue conversion requires further confirmation.
Quarterly volatility stemming from the project-based revenue structure, still-negative operating cash flow, and an elevated debt ratio are factors warranting financial attention.
Q3 results and progress on commercializing the AI Pixel business are likely to be key variables in gauging the company's direction going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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