Kakao is forging a strategic collaboration with Google to enhance on-device AI for Android, with plans to fine-tune services for smartphones and roll out KakaoTalk's AI assistant Kakana in early 2026.

ChatGPT for Kakao has grown to 8 million users, boosting KakaoTalk session time by about four minutes on average as AI-enabled features reshape engagement.

Kakao is developing interfaces for new XR form factors to enable hands-free messaging and natural language interactions, expanding experiences beyond traditional mobile apps.

In Q4, content segment revenue reached 910.6 billion won, with Music and Media rising 12% and 30% respectively while Story declined 5% to 191.8 billion won.

Discontinued operations from Kakao Healthcare affected comparables; on a like-for-like basis, revenue would be up 2.9% and operating profit 59.1% year over year.

TokBiz ad revenue is expected to grow in double digits this year as display ads rebound and the company expands open sales structures and brand and business messages.

CEO Jeong Shinah credited structural changes prioritizing core capabilities for the improved results, signaling validation of mid- to long-term growth expectations.

Other platform revenue, including Mobility and Pay, rose 30% year over year to 523.9 billion won, helped by parking and quick-delivery growth, with Pay showing balanced growth across payments, finance, and platform services.

Kakao’s 2025 restructuring reduced affiliates from 150 to 94, delivering 2025 revenue of 8.1 trillion won and operating profit of 732.0 billion won, with management targeting stronger net profit growth and mid-term ROE parity with peers.

Kakao posted record quarterly sales of 8.1 trillion won and operating profit of 732 billion won, up from the prior year, driven by the Talk Biz segment in Q4.

In Q4 2025, Talk Biz revenue rose 13% year over year to 627.1 billion won and operating profit jumped 169.7% to 203.4 billion won, with full-year revenue reaching 2.133 trillion won; Q4 net loss was 39.3 billion won.

The fourth quarter marked the highest quarterly revenue on record, at 2.133 trillion won, with an operating profit of 203.4 billion won.