Kakao unveils a strategic partnership with Google to boost on-device AI for Android devices, aiming to deepen Android collaboration and unlock data assets through embedded AI apps.

Kakao's ChatGPT for Kakao, added to KakaoTalk last year, has grown in users and interactions, with current usage at 8 million after an initial 2 million at launch.

The company targets at least 10% annual revenue growth and a 10% operating profit margin, emphasizing AI and KakaoTalk as engines for top-line growth and profitability, with expected monetization benefits to show from Q2 onward.

Kakao also aims to grow revenue by more than 10% in 2026 and pursue a 10% operating margin.

Kakao’s healthcare division, including Kakao Healthcare, was sold to CHA Bio Group and treated as discontinued; excluding it would have raised annual revenue by 2.9% and operating profit by 59.1%.

Previously, Kakao sold its healthcare business units to CHA Bio Group, with the healthcare segment presented as discontinued for comparison, while non-discontinued metrics show notable year-over-year improvements.

Following a late-2025 restructuring that cut affiliates from 150 to 94, Kakao reported 2025 revenue of 8.1 trillion won and operating profit of 732.0 billion won, with 2026 plans to resume robust growth and align mid-term ROE with peers.

CBT participants showed strong engagement, with over 80% completing model downloads and 70% continuing to use the service; calendar reminders and briefs were the most-used features, and commerce-related use cases dominated agent activity.

Kakao’s content unit sales were largely flat at 910.6 billion won in Q4.

TokBiz advertising is expected to sustain double-digit growth, with a rebound in display ads and a shift toward open commerce placements on KakaoTalk in the second half of 2026 to monetize commerce placements and raise ad revenue contribution.

Market reaction saw Kakao shares rise about 0.7% after results, following earlier sharper gains.

CEO Jung Shin-a’s term is set for reappointment for another two years, with the board approving and a March shareholders meeting expected to formalize it; she has led significant restructuring and stock repurchases to boost shareholder value.