KaKao

- First-quarter revenue and operating profit reach record highs for any first quarter, driven by enhanced core competitiveness and quality growth

- Kakao to begin its transition into an agentic AI platform, building on the structural growth of existing businesses

 

[May 7, 2026] Kakao (CEO Shina Chung) announced its consolidated financial results for the first quarter of 2026 under K-IFRS, reporting revenue of KRW 1.9421 trillion, up 11% year-on-year, and operating profit of KRW 211.4 billion, up 66% year-on-year. Both revenue and operating profit reached record highs among all first quarters throughout the company’s history.

 

By business segment, platform service revenue in Q1 rose 16% year-on-year to KRW 1.827 trillion.

 

Within the platform segment, Talk Biz revenue rose 9% year-on-year to KRW 608.6 billion. Talk Biz Advertisement revenue totaled KRW 338.4 billion, up 16% year-on-year. Growth was driven by increased message volume resulting from stronger demand among financial-sector advertisers, while the diversification of messaging products expanded advertiser use cases and contributed to a 27% year-on-year increase in business messaging revenue. Display advertisements also achieved a 10% revenue growth rate compared to the same period last year.

 

Combined gross transaction value (GTV) for Talk Biz Commerce services, including Gift and Talk Deal, reached KRW 2.9 trillion in the first quarter, representing 10% year-on-year growth. The surge was driven by strengthened product offerings in high-demand categories such as fresh food and home appliances, as well as enhanced personalized benefits for users. In particular, the “Kakao Shopping Festa” campaign in March contributed to an 18% year-on-year increase in Talk Store transaction value and a 53% increase in self-purchase transaction value within the KakaoTalk Gift service. Commerce revenue increased 1% year-on-year to KRW 270 billion.

 

Other platform service revenues, which include Kakao Mobility and Kakao Pay, reached KRW 506.5 billion, a 30% increase year-on-year. Kakao Mobility delivered double-digit year-on-year revenue growth for the third consecutive quarter, supported by its taxi, parking, last-mile logistics, and advertising businesses. Kakao Pay surpassed KRW 300 billion in quarterly revenue for the first time, driven by growth across payment, financial, and platform services.

 

Content revenue increased 5% year-on-year to KRW 759.4 billion in the first quarter. Music revenue rose 11% year-on-year to KRW 484.6 billion, while revenue from the media sector increased 23% year-on-year to KRW 92.4 billion. As for KakaoStory, the revenue totaled KRW 182.4 billion.

 

Operating expenses for the first quarter this year rose to KRW 1.7307 trillion (up 7% YoY). As a result, operating profit stood at KRW 211.4 billion (up 66% YoY) with an operating margin of 11%. While the first quarter is typically affected by seasonal softness and tends to generate relatively lower profitability, margins improved significantly this quarter as efficiency initiatives that focused on core businesses were reflected in overall performance.

 

Kakao plans to accelerate its transition toward an agentic AI platform this year. Shina Chung, CEO of Kakao, said, “It is encouraging that we achieved quality growth in the first quarter by strengthening our core competitiveness,” adding, “Building on the structural growth trajectory of our existing businesses, Kakao will now begin its transformation beyond a messaging service into an agentic AI platform serving 50 million users.” (E.O.D.)