KeyEast Q1 2026 Revenue Up 89.8% but Operating Loss Continues; Debt Ratio Rises

Q1 2026 revenue: 8.5B KRW (up 89.8% YoY)
Operating loss: 0.98B KRW; net loss: 0.52B KRW (similar to Q1 2025 net loss of 0.52B KRW)
Debt ratio: 56.7% (up from 48.9% at year-end 2025); current ratio: 149.6% (down from 163.2%)
Cash & cash equivalents: 8.16B KRW (down from 11.17B KRW at year-end 2025)
No dividends or share buyback/retirement
5th series convertible bond: 13.97B KRW face value, conversion price 4,864 won (stock price: 2,580 won); put option exercisable from June 2026
Equity-method loss from Studio Flow: 0.27B KRW recorded
Lawsuit with Canverse&: appeals court ordered 0.88B KRW compensation; both parties appealed to Supreme Court (provision of 1.16B KRW)
Largest shareholder: SM Entertainment (28.22%), under Kakao group
Articles amended to reflect revised Commercial Act: independent directors ≥1/3, voting restrictions on auditor appointment