KOSDAQIT & Software108860

Selvas Ai

₩8,980▲ 0.11%2026-10-02 close

Market Cap

₩241.2B

Turnover

₩1B

Volume

110,000 shares

Shares out.

26.9M

PER

—

PBR

2.1×

EPS

-₩110

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Medical-Device Unit Drives the Earnings Turn

SELVAS AI posted record consolidated revenue in 2025 on the back of subsidiary Mediana's medical-device growth, but the loss attributable to owners persisted even as operating profit turned positive.

1
2025 consolidated revenue rose about 2.1% year over year to roughly KRW 114.8 billion, with operating profit remaining positive.
2
Despite positive operating income, the net loss attributable to owners widened in both 2024 and 2025, revealing a gap between operating and bottom-line results.
3
The medical-device manufacturing and sales segment's share of revenue rose to 62.4% in the first half of 2026, shifting the center of gravity of the business.
4
The stock was added to the KOSDAQ 150 index in March 2026 but was removed in the June regular rebalancing due to a drop in market-cap ranking, causing passive-fund flow swings.
5
Over the most recent four quarters (Q3 2025 through Q2 2026), revenue growth and operating profit continued alongside a persistent net loss.

Business structure

Founded in 1999, SELVAS AI is Korea's first listed AI specialist, having built up human-computer interaction (HCI) source technologies including speech-to-text, text-to-speech, optical character recognition, handwriting recognition, and natural language processing.

In 2023 the company acquired a controlling stake in medical-device maker Mediana, shifting its business structure from a software-centric model to an AI-and-medical-device hybrid, and began consolidating Mediana's results from the following year.

As a result, the medical-device manufacturing and sales segment generated revenue of KRW 37.4 billion in the first half of 2026, up 25.9% from KRW 29.8 billion a year earlier, and its share of consolidated revenue rose from 54.7% to 62.4%.

Mediana's core products are patient monitoring devices (PMD) and automated external defibrillators (AED), with first-half PMD revenue of KRW 18.8 billion up 53% year over year on expanded North American and European exports.

Another subsidiary, SELVAS Healthcare, makes body-composition analyzers (AccuNiq), electronic blood-pressure monitors, and assistive devices for the visually impaired (BrailleSense series); body-composition analyzers now account for roughly 60% of its revenue, and an exclusive supply partnership with Australia's Evolt is expanding overseas sales.

The core AI solutions business spans automated medical-record speech recognition for hospitals, text-to-speech deployed on the RIDI e-book platform, and in-vehicle voice-recognition middleware built with partners including Amazon Alexa, Baidu, Cerence, and SoundHound for automakers, alongside public-sector projects such as an integrated operating-room control demonstration at a military hospital.

In voice AI, large IT firms such as Naver, Samsung Electronics, and Kakao are potential competitors, but for them this is a peripheral business, whereas it is a core focus for SELVAS AI.

In medical devices, the company competes against both large global device makers and domestic rivals, differentiating itself through an integrated monitoring platform strategy that combines hardware with AI software.

Earnings trend

Quarterly revenue · Operating profit

₩28B₩72,363,71725Q2₩25.8B₩1B25Q3₩34.5B₩800M25Q4₩26.6B-₩400M26Q1₩33.3B₩1.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩50.9B₩5B2022₩53B₩4.1B2023₩112.5B₩800M2024₩114.8B₩1.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩28B	₩72,363,717	0.3%
2025Q3	₩25.8B	₩1B	4.0%
2025Q4	₩34.5B	₩800M	2.3%
2026Q1	₩26.6B	-₩400M	−1.4%
2026Q2	₩33.3B	₩1.8B	5.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩50.9B	₩5B	₩6.6B	9.8%	12.1%	49.0%
2023	₩53B	₩4.1B	-₩2.6B	7.7%	−1.9%	14.4%
2024	₩112.5B	₩800M	-₩5.8B	0.7%	−4.8%	18.7%
2025	₩114.8B	₩1.5B	-₩6B	1.3%	−5.5%	18.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22

Earnings analysis

2025 consolidated revenue reached KRW 114.78 billion, up 2.1% from KRW 112.45 billion a year earlier and a record high, while operating profit rose 85.3% to KRW 1.48 billion from KRW 0.80 billion, lifting the operating margin from 0.7% to 1.3%.

Yet the net loss attributable to owners stayed roughly level at KRW 6.0 billion versus KRW 5.8 billion in 2024, and the total net loss widened to KRW 4.3 billion from KRW 1.0 billion, underscoring a persistent gap between operating and bottom-line results.

This gap has recurred since Mediana was consolidated in 2023: revenue jumped 112% from KRW 53.0 billion in 2023 to KRW 112.5 billion in 2024, yet the operating margin fell from 7.7% to 0.7% and the owners' net loss widened from KRW 2.6 billion to KRW 5.8 billion.

On a quarterly basis, the company was profitable in the third quarter of 2025 with revenue of KRW 25.8 billion, operating profit of KRW 1.04 billion, and owners' net income of KRW 0.89 billion, but the following quarter's owners' net loss widened to KRW 3.71 billion even as revenue rose to KRW 34.5 billion.

Volatility continued into 2026: the first quarter posted an operating loss of KRW 0.37 billion yet a positive owners' net income of KRW 0.50 billion, while the second quarter saw operating profit improve to KRW 1.78 billion but the owners' net result slip back to a loss of KRW 0.63 billion.

Summed over the most recent four quarters (Q3 2025 through Q2 2026), revenue totaled roughly KRW 120.3 billion and operating profit about KRW 3.2 billion, an improving operating trend, while the owners' net loss over the same period was about KRW 2.95 billion, still in negative territory.

Operating cash flow rose to KRW 9.4 billion in 2025 from KRW 5.2 billion in 2024, indicating solid underlying cash generation, and the debt ratio remained low at 18.2%.

Industry analysis

Korea's market for patient monitoring devices and automated external defibrillators is trending toward integrated in-hospital monitoring while exports to North America and Europe expand, a trend reflected in Mediana's 53% year-over-year growth in first-half PMD revenue.

Linking electronic medical records with patient monitors and managing wireless data such as wearable ECG signals through 'wired-wireless integrated monitoring' is emerging as a new industry standard.

In voice AI, global technology giants such as Naver, Google, and Amazon hold core technologies, but specialized application areas like automated hospital record-keeping or in-vehicle voice middleware still leave room for focused players.

SELVAS AI said it built in-vehicle voice-recognition middleware in partnership with global speech-engine providers including Amazon Alexa, Baidu, Cerence, and SoundHound and applied it to a domestic mass-produced vehicle model.

On the KOSDAQ market, index rebalancing directly affects fund flows; SELVAS AI was added to the KOSDAQ 150 in March 2026 only to be removed in the June regular rebalancing due to a drop in its market-cap ranking, experiencing the passive-flow volatility typical of small-cap names.

In medical devices, the competitive landscape mixes large global manufacturers with domestic specialists, and Mediana is strengthening its position through in-house production of medical consumables to improve its cost structure and expanding overseas distribution.

The AI medical-platform space remains at an early stage, and each player's data-integration and regulatory-approval capabilities are likely to be key competitive variables going forward.

Outlook

The company has characterized 2025 as a year of earnings improvement and new-business foundation building, and said that in 2026 it will continue improving profitability by expanding the revenue share of new businesses, including wired-wireless integrated monitoring, and launching new products.

Mediana said it is expanding supply of 'MEDIANA Unified Monitoring,' which integrates wired patient monitors with wearable ECG and fall-detection data, and is broadening its distribution to general and secondary hospitals.

SELVAS AI is pursuing an AI medical-platform business centered on a central monitoring system (CMS) that combines the medical-device infrastructure gained through the Mediana acquisition with its own AI and software technology to monitor hospital-wide patient data, and said a range of AI medical services, starting with the CMS, are set to be rolled out sequentially within the year.

SELVAS Healthcare unveiled an AI-based cardiac ultrasound guidance solution called UltraSight for hospital use and a new body-composition analyzer, BC2000, for non-medical settings, and said it is also preparing to launch new medical devices such as a stroke-diagnosis guidance instrument.

In mobility, the company said it plans to scale up commercialization and revenue growth in domestic and overseas automotive markets based on mass-production deployment of its in-vehicle voice-recognition middleware.

The next regular filing, the third-quarter 2026 report, is due before the statutory deadline of November 16, and whether Mediana-led growth continues and whether the AI solutions segment crosses breakeven will be the key items to watch.

Valuation

PER

—

PBR

2.1×

ROE

-2.6%

EPS

-₩110

BPS

₩4,262

Dividend per share

₩0

The company has posted positive operating profit for two consecutive years, 2024 and 2025, yet the net loss attributable to owners has persisted, producing an earnings structure that is difficult to value on an earnings-multiple basis.

The share price relative to net assets sits above the average multiple range observed in past disclosures, implying a premium to book value that may partly reflect growth expectations for the medical-device subsidiary and a re-rating of the AI business.

The stock's historical price-to-earnings band included a period, after its return to profitability in 2020, averaging in the mid-30s, but with the owners' net loss continuing recently, an earnings-based multiple is difficult to calculate at present.

There has been no recent dividend payment history, so no dividend-yield metric has formed, which is worth noting relative to peers that do pay dividends.

Given the company's limited formal brokerage coverage as a small-cap name, the absence of a well-formed market consensus is another factor to bear in mind when interpreting valuation.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-22

Bull factors

Mediana-led growth in both revenue and profit

The revenue share of the medical device manufacturing and sales segment rose to 62.4% in the first half of 2026, and operating profit for the same period expanded from KRW 0.6 billion to KRW 2.7 billion.

Patient Monitoring Devices (PMD) saw first-half revenue increase 53% year-on-year on the back of expanding North American demand, while automated external defibrillators are showing growth momentum in the European market.

Expansion of overseas sales networks and cost structure improvements from in-house production of medical consumables are progressing in tandem.

Solid cash generation and low financial leverage

Operating cash flow in 2025 rose to KRW 9.4 billion compared to the previous year, and the debt ratio remains low at 18.2%. Despite volatility in net income, actual cash generation capacity remains solid, which could serve as a foundation for new business investment or M&A capacity.

Expansion into AI medical-platform and mobility businesses

The company stated that AI-based medical services, including a Central Monitoring System (CMS) combining Mediana's infrastructure with AI technology, are scheduled to be sequentially unveiled within the year.

Its in-vehicle voice recognition middleware has been applied to mass-produced domestic automaker models, laying the groundwork for expanding revenue in the mobility sector.

Bear factors

Net losses persisting despite operating profit

Operating profit was positive in both 2024 and 2025, but net loss attributable to controlling shareholders continued at approximately KRW 5.8 billion and KRW 6.0 billion, respectively.

In the first and second quarters of 2026, operating profit/loss and net profit/loss also repeatedly diverged in direction, warranting a closer look at earnings quality.

Passive-flow shift after KOSDAQ 150 exclusion

The company was newly included in the KOSDAQ 150 in March 2026, but its exclusion was confirmed at the June periodic rebalancing due to a decline in market capitalization ranking. Inflows and outflows of index-tracking passive funds can be a factor affecting the short-term supply and demand of small-cap stocks.

Profitability uncertainty in the core AI solutions business

While the medical device segment's share of consolidated revenue is growing, it remains unclear whether the core AI solutions business has crossed its break-even point. With limited formal securities firm coverage, the market's basis for earnings estimates is also relatively thin.

Risk factors

Accounting and earnings-structure risk

A gap between operating profit and net income attributable to controlling shareholders has appeared for several consecutive quarters, and if non-operating profit/loss volatility recurs, it could affect the reliability of earnings estimates.

Caution is also needed regarding the possibility of non-recurring adjustments arising from subsidiary consolidation.

Medical-device approval and export risk

If the approval process for new medical devices is delayed, the timing of revenue realization could be pushed back, and as the share of overseas revenue from North America and Europe has grown, exchange rate fluctuations and changes in the trade environment could also affect performance.

Small-cap liquidity and flow risk

Given the characteristics of a relatively small-cap stock, the impact of passive fund movements and trading volume fluctuations associated with index inclusion/exclusion on stock price trends can be significant. With limited formal securities firm coverage, information asymmetry is also relatively large.

What to watch next

Mid-November 2026 (statutory deadline November 16)
The third-quarter 2026 report will show whether Mediana-led revenue and profit growth continues and whether the AI solutions segment's profitability improves.
December 2026 KOSDAQ 150/KOSPI 200 regular rebalancing
Since the KOSDAQ 150 and KOSPI 200 indices are reconstituted twice a year in June and December, this is a point to check whether the market-cap ranking recovers and re-inclusion becomes possible.
During the fourth quarter of 2026
Investors should track whether the company's planned sequential rollout of AI medical services, including the central monitoring system, occurs within the year and begins contributing to revenue.
Early 2027, upon filing of the annual business report
The finalized 2026 annual results should be checked for whether the owners' net loss narrows and whether non-operating one-off items recur.

Overall view

Following its 2023 acquisition of Mediana, SELVAS AI transformed from a software-focused AI company into an AI-and-medical-device hybrid, and consolidated revenue hit a record high in 2025 as a result.

However, even as operating profit stayed positive in both 2024 and 2025, the net loss attributable to owners persisted, meaning the operating-level improvement has not fully translated into bottom-line gains.

Summed over the most recent four quarters, revenue and operating profit showed an improving trend, but the owners' net result remained in negative territory.

The medical-device segment continues to grow on expanded North American and European exports and broader supply of integrated monitoring solutions, while whether the core AI solutions business crosses breakeven and how fund flows shift following the KOSDAQ 150 exclusion remain variables to watch.

On the financial-stability side, a low debt ratio and solid operating cash flow support the company's capacity for further investment in new businesses.

Investors will want to track the upcoming third-quarter earnings release, the timing of revenue contribution from new AI medical-platform initiatives, and index-reconstitution events to gauge how far the business transformation translates into results.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-10-01 · Data as of 2026-09-30

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.