Elice Group: 10 Billion Won Profit Followed by 3 Major Risks

They aim to achieve a corporate value in the trillions of won, and according to a recent securities registration statement, they recorded a profit of 10 billion won in the first half of 2026.

Reporter Lee Seung-ah announced the news of Elice Group's IPO pursuit, stating, "What we will cover today is Elice Group, which is preparing for listing. Elice Group is known to be aiming for a corporate value in the trillions of won."

Now, beyond B2B coding education, they are focusing on providing AX (AI Transformation) solutions that encompass all stages of artificial intelligence, including cloud AI services, AI model development, and AI education.

Reporter Lee Ju-young explained, "Currently, it is no longer a coding education startup. Elice Group defines itself as an AI full-stack company that directly covers all stages, from cloud solutions to AI model education."

In 2025, revenue increased by 13.9% year-on-year to 39.5 billion won. In contrast, operating profit for the same year decreased by 37.5% from 2024, amounting to only 5.1 billion won.

However, in the first half of 2026, they successfully turned a profit, achieving 34.3 billion won in revenue and 10.3 billion won in operating profit. Reporter Lee Ju-young noted, "Compared to 2024, revenue in 2025 increased by 13.9% to 39.5 billion won. However, operating profit in 2025 decreased by 37.5% compared to 2024, recording 5.1 billion won."

Cloud revenue, which was only 2.96 billion won in 2024, significantly increased to 17.4 billion won in 2025.

Especially in the first half of 2026, it recorded 26.19 billion won, showing rapid growth. Cloud GPU server rental fees and government project contracts are the main revenue sources for this segment. Reporter Lee Ju-young emphasized, "Cloud segment revenue was 2.96 billion won in 2024, surged to 17.4 billion won in 2025, and grew to 26.19 billion won in the first half of 2026."

The proportion of AX revenue, which accounted for 93.4% of total revenue in 2023, sharply dropped to 91.46% in 2024, 55.82% in 2025, and further to 23.8% in the first half of 2026.

In absolute terms, it decreased from 31.7 billion won in 2024 to 22 billion won in 2025, and a simple calculation estimates the expected AX revenue for 2026 to be around 16.36 billion won. Reporter Lee Ju-young pointed out, "The first is the decline in revenue from their main business, AX. It dropped from 91.46% in 2024 to 55.82% in 2025, and then sharply to 23.8% in the first half of 2026."

Concerns about Elice Group's corporate identity are growing as revenue from the AX segment, its former cash cow, halved in two years. Despite the growth in cloud revenue, questions are being raised about its overall identity as an AI company.

Reporter Lee Ju-hyung analyzed, "Even if revenue increases, the fact that revenue from the AX segment, which was previously a cash cow, has halved in two years is not a good sign for Elice Group." He noted that while a healthy business structure would involve simultaneous growth in cloud and AX revenue, the clear decline in AX is problematic.

Reporter Lee Ju-hyung explained, "Of the 26.19 billion won in cloud platform revenue in the first half of 2026, company A accounts for 85.9%."

They plan to expand their own AI infrastructure and increase orders through modular data centers.

However, this market is only just forming, so there is only potential, with no concrete results yet. Concerns are also raised that it may be difficult to maintain competitiveness if large corporations with substantial capital enter the market. Reporter Lee Ju-hyung commented, "The modular data center market is in its early stages of formation, so it's literally just potential."

Elice Group has shown a positive trend, successfully transitioning from an education company to an AI company and maintaining a profit trend. However, analysis shows that it carries several potential risks ahead of its IPO. The first risk is the continuous decline in revenue from its existing core business, the AX segment.

Furthermore, there are concerns that cloud revenue, which has been driving growth, is overly dependent on government support projects, making it unstable. Finally, the new modular data center business is still in its early stages of market formation and has not yet proven concrete results, adding further uncertainty. Reporter Lee Ju-hyung summarized, "Revenue from the core AX segment is declining, and cloud revenue, which was driving growth, turns out to be highly dependent on government support projects."