Madup's AI R&D Investment Drives Record-Breaking Performance

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Madup, which had accumulated a net loss of 35 billion won since 2016 while pouring investment into AI technology development, has achieved the largest net profit in its history, marking a significant turning point. The figures demonstrate that the company has entered a "quantum jump" phase, where its unrivaled technological capabilities are now directly translating into "overwhelming profits," going beyond simple external growth.

According to the consolidated audit report released on March 31, Madup posted a net profit of 7.8 billion won for 2025, rebounding from a net loss of 2.7 billion won in the previous year. Notably, if one excludes temporary costs under IFRS accounting standards-such as book value losses and interest expenses related to redeemable convertible preferred shares (RCPS) that have already been converted into common stock-the company's actual net profit reportedly amounts to 11.2 billion won. This is considered an extraordinary profit margin even within the advertising agency industry and clearly demonstrates Madup's identity not as a simple agency, but as a "high-profit solution company."

Revenue also reached 50.2 billion won, a 44% increase from the previous year's 35 billion won. Operating profit was 8.55 billion won, swinging from an operating loss of 400 million won in the prior year to a significant surplus.

This turnaround in Madup’s performance is attributed to its aggressive R&D investment since its founding. The company devoted most of the funds raised from Series A through D to developing AI marketing solutions. The fact that the cumulative losses nearly matched the amount of funds raised is evidence of Madup’s commitment to securing AI technology. Despite running deficits, the company spent about 20% of its annual revenue on R&D and maintained a team of over 50 developers, building a technological moat that ultimately served as a catalyst for profit realization. This approach is clearly differentiated from traditional advertising agencies, which typically spend only 1-2% or less of their revenue on research and development.

The result of this technological obsession was the development of the AI marketing solution "LEVER Xpert," which played a central role in improving Madup’s performance. Revenue from the solutions division, which was only 1.7 billion won in 2024, soared to 4.9 billion won in 2025 as revenue linked to LEVER Xpert began in earnest, representing a year-on-year growth of 285% and boosting the company’s overall profit margin. Unlike the traditional labor-based advertising agency business, Madup’s advertising agency division, powered by LEVER Xpert, also grew by 35% compared to the previous year, proving its growth potential. As the digital marketing market becomes more advanced, capabilities across large-scale, multi-region, and multi-channel marketing are increasingly important, and Madup’s competitiveness is further highlighted by its ability to meet these needs with its solutions.

Madup is currently undergoing a preliminary review for listing on KOSDAQ via the "unrealized profit track" (Tesla Track). This system, designed for tech companies that require substantial upfront investment and are not yet profitable, has faced questions about its effectiveness due to underperformance by some previously listed companies. However, Madup has demonstrated not only technological strength but also robust profitability with this performance announcement, and is being cited as the ideal model for Tesla Track IPOs.

A Madup representative stated, "There have been doubts about why an advertising company is so obsessed with development, but this performance is the strongest answer that our investments were justified," adding, "The capital secured through the IPO will be used to further widen the global AI technology gap, continuing sustainable high growth."

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