Hancom WITH Posts 9.4 Billion Won in Third-Quarter Operating Profit
Key Facts
Hancom WITH said consolidated operating profit reached 9.4 billion won in the third quarter of 2026, compared with 1.6 billion won in the same period a year earlier, or nearly six times as much. The surge came in a quarter when the company began consolidating Hancom's results as a subsidiary. Hancom WITH raised its direct stake in Hancom to 31.2%, then included its results in consolidated statements from the third quarter. The consolidation also covered Hancom's subsidiary Hancom Lifecare. Meanwhile, consolidated revenue fell to 128.8 billion won, down 14.4% year on year.
The divergence between higher profit and lower revenue reflected two different effects on quarterly results: a change in the group's scope on one hand, and weaker physical gold distribution on the other. The company attributed the revenue decline to lower distribution volumes at Hancom Gold Exchange after international gold prices corrected. The operating margin was 7.3% for the quarter. Operating profit therefore increased alongside a contraction in revenue, rather than an expansion. Results reported for the first nine months also showed consolidated revenue of 394.6 billion won and operating profit of 8.8 billion won. Cumulative operating profit rose 112% year on year.
Hancom Lifecare added revenue of 30.9 billion won and operating profit of 3.4 billion won to third-quarter results, with revenue up 31% year on year. The coverage said defense programs supported this performance, including delivery of the new-generation K5 gas mask and the supply of ground-based laser target designators. These results place the subsidiary's business among the operating contributions reflected in consolidated statements after Hancom was included. Hancom, before its inclusion in Hancom WITH's consolidated results, reported standalone third-quarter operating profit of 9.7 billion won, down 21% from 12.2 billion won a year earlier. By contrast, its standalone revenue rose 9.6% to 48.3 billion won. These figures relate to Hancom's standalone performance, while the group's results cover a wider scope following consolidation.
At Hancom, revenue from new businesses, including artificial intelligence, reached 30.9 billion won in the third quarter, up 67.2% year on year, and accounted for 64.1% of total revenue. AI revenue alone was 14.8 billion won, an increase of more than 80% from 8.2 billion won in the previous quarter. AI's share of revenue rose from 13.7% in the first half to 30.7% in the third quarter. Hancom said growth in this business relies mainly on about 200,000 existing customers. In July, the company supplied its Hancom Assistant product to the internal AI platform of Korea Hydro & Nuclear Power. These businesses are part of Hancom's performance, which began to be reflected in the group's results after consolidation started.
Hancom WITH said the net loss was linked to a one-time accounting valuation loss resulting from the revaluation of its previous stake in Hancom during the consolidation process. The company distinguished this effect from its explanation of quarterly operating results. Chief Executive Song Sang-yeop said the group's results “began to be reflected in Hancom WITH's performance” in the third quarter thanks to the consolidation of Hancom. He added that the company is seeking results in areas including AI authentication and quantum-resistant encryption. Regarding Hancom, the company said it will conduct a closed beta test of its Nomadian product in the United States during December 2026. It is targeting a full global launch in March 2027, with AWS collaborating on product development and its market launch strategy.
Hancom Chief Executive Kim Yeon-su said the company will direct funds raised from exiting non-core businesses to Nomadian. He linked the start of external AI revenue growth to the targeted global launch in March 2027, saying: “Starting with the global launch in March next year, we will begin to grow external AI revenue in earnest.” These plans place the December test in the United States as a step ahead of the announced global launch. This comes as Hancom's results became part of Hancom WITH's consolidated statements from the third quarter. The consolidated results also included Hancom Lifecare's contribution, which recorded revenue growth and activity supported by defense programs. The assessment of coming periods will depend on how the two companies execute the plans they announced.