Davolink Q1 2026: Continued operating loss, cash plunge, mounting financial pressure

Q1 2026 consolidated revenue: 12.57bn won (slight YoY increase), operating loss -1.01bn won, net loss -4.20bn won (EPS -82 won), losses persist.
Cash and cash equivalents plummeted to 1.77bn won (from 9.05bn at year-end 2025), operating cash flow -9.09bn won.
High debt: total liabilities 29.76bn won, equity 12.40bn won, retained earnings -28.14bn won.
Derivative liabilities on convertible bonds: 8.12bn won; short-term borrowings: 4.95bn won; significant financial burden.
Ongoing lawsuit for fire-related damages (claim amount: 500m won).
Planned small-scale rights offering (787,400 shares at 1,270 won) to raise funds.
Subsidiary Ecovia (biodegradable plastics): negligible revenue (159m won), net loss -95m won.
Positive: Continued R&D in Wi-Fi 7 and 5G routers (6% of revenue), maintained strong market share in telecom AP market.