Nrise Achieves the Feat of Record-High Revenue for 2 Consecutive Years and a Turnaround to Net Profit... "Stepping up for the Next Leap with Global Expansion and IPO"

Nrise has successfully improved its fundamentals focusing on profitability, bearing the valuable fruit of breaking its record-high revenue for two consecutive years along with a turnaround to a net profit. The assessment is that the past period of investment and endurance has entered a perfect virtuous cycle of 'growing while making a profit.'

Revenue Grows Over the Past 5 Years, Profit and Loss Turns to Surplus

The flow of Nrise's revenue and profit and loss over the past five years is like a drama with a plot twist. From 2021 to 2023, the external size grew due to aggressive investments and marketing executions for new businesses, but it inevitably had to pass through a deficit period. Following a turn to a deficit in 2021, operating losses fell to 4.5 billion won in 2022. However, from 2023, the company appears to have begun optimization work with an emphasis on 'profit improvement rather than growth' for survival and another leap forward.

As a result, in 2024, it recorded an all-time high revenue of 33.8 billion won and finally achieved a turnaround to an operating profit (operating profit of 720 million won). The twist did not end there. In 2025, revenue broke the maximum record again at 34.1 billion won, and the company achieved a dazzling performance, turning a surplus not only with an expanded operating profit but also in net profit (1.75 billion won). This is interpreted as the efforts of the management and the entire company to turn a profit finally blossoming since its last investment attraction from Korea Investment Partners, Daekyo Investment, and LB Investment in 2022.

Evolution of Two Major Cash Cows, WIPPY and QUAT, and a Green Light in the Japanese Market

Behind Nrise's rapid growth lie two solid cash cows. The social discovery app 'WIPPY' has firmly established itself as the No. 1 dating app in Korea, aiming for healthy connections that make neighborhood friends beyond simple meetups. Furthermore, the subscription-based home training platform 'QUAT' is receiving an explosive response as a service that helps anyone easily build a workout habit in around 10 minutes at home.

In particular, the most powerful driver of future top-line growth is unquestionably the 'Japanese business.' 'WIPPY Japan,' which entered the market in 2024, has successfully settled in its early stages. CEO Kim Bong-ki emphasized, "The expansion into Japan is a highly important part where the most investment is being made at Nrise," adding, "We have not stopped investing even in a difficult environment because we believe that there will be a 'next' for WIPPY only if we expand globally." Based on the improvement in contribution margin, QUAT is also attempting continuous external expansion by building new pipelines such as ballet, yoga, and Pilates.

The Light and Shade of Labor and SG&A Expenses Reduction, and the Truth Hidden in the Numbers

Of course, there were heartbreaking decisions behind the turnaround to a surplus. Nrise strongly controlled its SG&A expenses with agonizing efforts, reducing its workforce by one-third (about 30%) compared to the previous year. CEO Kim stated, "Since 2021, we expanded our personnel for the expansion of QUAT, but we inevitably executed reductions due to changes in the external investment environment, the emergence of AI, and the limits of growth potential."

Instead, it successfully improved the efficiency of advertising and promotional expenses, which accounted for the largest proportion in the financial statements. Under a situation where the unit cost of acquiring new users became extremely high, WIPPY focused on the retention of existing customers and securing core targets, and QUAT also optimized marketing costs, drastically improving the ratio of advertising expenses to revenue.

A clear explanation also followed regarding the issue of soaring 'trade receivables' and 'advance payments' that stand out in the financial statements. As of the end of 2025, trade receivables were 4.58 billion won, an increase of about 1.5 billion won (49.4%) from the previous year (3.07 billion won). Regarding the significant increase in uncollected money despite revenue remaining almost stagnant, CEO Kim dismissed it, saying, "It was a temporary happening in 2025 where a problem was raised with the settlement bank account during the platform company's self-monitoring process, delaying the deposit," and that, "After changing the bank information, all deposits were normally completed early this year." He added that the advance payments, paid in advance to receive future services, increasing by nearly 500 million won from 130 million won to 640 million won, is also "a natural phenomenon resulting from actively changing the payment method to reduce fees as cash flow improved."

The Next Tasks: 365withus and Initial Public Offering (IPO)

The blueprint for its subsidiary, 365withus, was also revealed. 365withus, which had its book value reduced to zero after recording equity method losses of 1.5 billion won in 2022 and 600 million won in 2023, was originally acquired for synergy with QUAT. Under the brand 'Jamiet,' it sells fitness equipment (home fitness), dietary supplements, and meal plans. As of 2025, it recorded revenue of 8.8 billion won and an operating loss of 630 million won.

CEO Kim explained, "Currently, QUAT is rolling out the sales of fitness equipment and meal plans based on 365withus," adding, "Although there was a decline in revenue and profit, we will first improve cash flow, just as Nrise did, and then seek synergy with QUAT once again." Regarding a merger, the position is to actively consider it after the cash flow improvement.

Regarding the possibility of a capital reduction without refund to clear up the remaining deficit of about -10.8 billion won despite two consecutive years of surplus, he drew a line, stating, "We are not considering it at all right now."

Lastly, CEO Kim showed relative confidence regarding the expectations of financial investors (FIs) for an IPO. He expressed his ambition, stating, "Since we have received investments, the listing of Nrise is an immediate task that must be pursued," and, "Various preliminary preparations such as market positioning and performance have been completed to some extent, and we will continuously discuss with shareholders to determine the optimal listing timing to maximize shareholder value."

Nrise, which turned a crisis into an opportunity and climbed onto a perfect profitability track. It is a time to look forward even more to their next steps toward the global stage, including Japan, and the stock market.