PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩220 per share · Prices as of the 2026-10-02 close
InnoAX is expanding its AI Transformation (AX) business through a corporate rebrand and subsidiary consolidation, but recent quarterly net income includes a substantial non-recurring gain from a stake sale that should be separated from core operating trends.
At its March 2026 shareholders' meeting, the company changed its name from Innorules to InnoAX and formalized its shift to becoming an AX (AI Transformation) partner.
Consolidated H1 2026 revenue reached KRW 14.99 billion, up 36% year-on-year and a record half-year high, with Q2 revenue also setting a new quarterly record.
Owners' net income surged in Q2 2026 versus the prior quarter, likely reflecting a disposal gain from selling part of its stake in unlisted investee Agile Soda to NH Nonghyup Bank.
The full-year 2025 operating margin fell sharply to 4.0% from 10.1% in 2024, which the company attributed to preemptive investment in AX-related headcount.
Management purchased shares on the open market in August 2026, and the company has continued paying dividends since its listing as part of broader shareholder-return efforts.
Founded in 2007, InnoAX is a KOSDAQ-listed company that has supplied business rule engine (BRMS)-based automation solutions to the finance and insurance industries for over two decades, positioning itself as a leading provider of digital transformation automation software in Korea's financial market while expanding into manufacturing, retail and services, education, healthcare, and public sectors.
At its March 2026 shareholders' meeting, the company renamed itself from Innorules to InnoAX and restructured its business toward becoming an AX (AI Transformation) partner, combining its existing rule-based automation capabilities with AI to achieve hyper-automation of corporate workflows.
Its core products are the low-code rule management solutions InnoRules and InnoProduct, complemented by the newer InnoPAS solution for automated insurance rate calculation and AX services, which are driving rapid growth in AI-related revenue.
Starting in Q1 2026, the company consolidated enterprise software firm SJ Link as a subsidiary, expanding its consolidated revenue base.
In 2025, the company made a strategic investment in AI firm Agile Soda through equity and convertible bonds, and in June 2026 it sold part of that equity stake to NH Nonghyup Bank, realizing an investment gain while retaining the convertible bonds and product distribution priority to preserve the business partnership.
Overseas, the company has been present in Japan since 2016, having signed a license agreement with a major local insurer.
In the domestic competitive landscape, companies such as AhnLab, Makinarocks, Hancom, Xgate, and SureSoft Technologies are classified in similar sectors, and competitive intensity is rising amid a broader industry trend of IT firms rebranding around AI and AX, including NC AX and SK AX.
Its customer base is understood to include major financial and manufacturing groups such as Samsung Life and Samsung Electronics.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩5.3B | ₩77,960,374 | 1.5% |
| 2025Q3 | ₩6B | ₩300M | 5.3% |
| 2025Q4 | ₩5.9B | ₩62,483,221 | 1.1% |
| 2026Q1 | ₩7.1B | ₩500M | 6.4% |
| 2026Q2 | ₩7.9B | ₩300M | 3.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩16.2B | ₩1.3B | ₩2.1B | 7.9% | 6.9% | 10.8% |
| 2023 | ₩15.5B | -₩1.2B | ₩34,782,575 | −8.0% | 0.1% | 14.1% |
| 2024 | ₩23.7B | ₩2.4B | ₩3.1B | 10.1% | 9.4% | 43.4% |
| 2025 | ₩22.9B | ₩900M | ₩2.6B | 4.0% | 7.6% | 18.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue in 2025 was KRW 22.93 billion, slightly down from KRW 23.71 billion in 2024, while operating profit fell sharply from KRW 2.40 billion to KRW 0.92 billion, pushing the operating margin down from 10.1% to 4.0%.
Owners' net income also declined from KRW 3.07 billion in 2024 to KRW 2.58 billion in 2025. In 2023 the company posted an operating loss of KRW 1.24 billion (margin of -8.0%) on revenue of KRW 15.51 billion before rebounding sharply in 2024 on the back of large-scale system-build contracts.
On a quarterly basis, weak results in Q2 2025 (revenue KRW 5.30 billion, operating profit KRW 78 million) improved in Q3 2025 (revenue KRW 5.97 billion, operating profit KRW 317 million) before operating profit slipped again to KRW 62 million in Q4 2025 even as revenue held near KRW 5.93 billion.
Owners' net income in Q4 2025, however, reached KRW 1.16 billion, far exceeding that quarter's operating profit, suggesting non-operating items were involved.
Entering 2026, Q1 revenue rose to KRW 7.14 billion (up 24.5% year-on-year) with operating profit of KRW 460 million, and Q2 revenue climbed further to KRW 7.85 billion, a new quarterly record.
Notably, Q2 2026 owners' net income jumped to KRW 2.90 billion from KRW 624 million in the prior quarter, a move likely driven in large part by the disposal gain from the Agile Soda stake sale disclosed around the same period.
As a result, the trailing four quarters (Q3 2025 through Q2 2026) show combined revenue of roughly KRW 26.9 billion and owners' net income of about KRW 5.19 billion, an unusually high net income relative to the scale of annual operating profit.
Korea's AX (AI Transformation) market is moving beyond simple chatbot deployment toward AI handling actual business processes and decision-making, with competition intensifying particularly in the financial sector.
A notable example is NH Nonghyup Bank's June 2026 acquisition of AI firm Agile Soda, considered the first case of a Korean commercial bank directly acquiring an AI technology company, signaling that competition to internalize AI capabilities within banking has begun in earnest.
This deal directly affected InnoAX, as part of its Agile Soda stake was transferred to Nonghyup Bank as part of that acquisition process.
Industry-wide, numerous IT firms including NC AX, Polaris AI Handy, and SK AX have rebranded around AI and AX themes, intensifying competition among companies with similar positioning.
InnoAX cites a leading adoption share in Korea's financial-sector digital transformation automation software market and holds references with major financial institutions as a barrier to entry, though as a small-cap software company it may have comparatively limited resources versus large systems integrators, platform companies, or global AI technology firms.
In banking, strict regulatory, security, and internal-control requirements are driving more partnerships or acquisitions with technology firms, which presents both partnership expansion opportunities and a substitution risk as clients build in-house AI capability for firms like InnoAX that specialize in rule engines and automation.
The company has stated plans to launch a Rule Copilot and an AI governance platform within 2026, described as leveraging over two decades of accumulated BRMS assets as an AI policy engine to preempt compliance demand tied to Korea's AI Basic Act.
It was selected for the Ministry of SMEs and Startups' Jump-Up Program, which will provide up to KRW 750 million in vouchers along with new-business strategy and management/technology consulting over three years to support AX platform upgrades.
As of the end of Q1 2026, the order backlog stood at KRW 16.08 billion, which the company presented as a foundation for future revenue realization. In its Q2 earnings disclosure, the company said the AX revenue share had expanded to 15%, driven by InnoPAS and AX services.
Regarding Agile Soda, InnoAX retains convertible bonds and a partial equity stake even after selling part of its common shares, meaning Agile Soda's future business performance or equity-method gains/losses could further affect InnoAX's results.
Management purchased shares on the open market in August 2026, which the company said was intended to share risk and reward with shareholders. However, how fully these plans translate into actual revenue and profit will require further confirmation through upcoming quarterly results and new order disclosures.
Reflecting the trailing four quarters, the company's profitability metrics show a recovery from the loss-making conditions seen in 2023, which can be viewed as an improved phase relative to its multi-year earnings cycle.
However, since a substantial portion of the recent increase in net income is believed to stem from a non-recurring gain tied to the Agile Soda stake sale, this should be distinguished from earnings power generated by core operations.
Price-to-book-related metrics appear to trade at a discount to net asset value, a reference point useful when comparing against similarly sized software peers.
The company has continued paying dividends since its listing, and it passed a resolution at an extraordinary shareholders' meeting to convert part of its capital reserve into retained earnings to fund tax-exempt dividends, indicating an effort to strengthen shareholder-return policy.
Given the characteristics of a small-cap KOSDAQ software stock, valuation metrics can also show relatively higher volatility depending on trading volume and supply-demand conditions.
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 2026-08-23
The AX-related revenue share expanded to 15% in Q2 2026, driven by the InnoPAS rate-calculation automation solution and AX services. H1 consolidated revenue reached KRW 14.99 billion, up 36% year-on-year and a record half-year high.
Growing references, such as the launch of an insurance rate efficiency system for Samsung Life, are also a positive factor for future expansion.
Starting Q1 2026, the company consolidated SJ Link as a subsidiary, expanding its revenue base, while realizing an investment gain by selling part of its Agile Soda stake to Nonghyup Bank. Even after the sale, it retains convertible bonds, a partial stake, and product distribution priority, preserving the partnership. An order backlog of KRW 16.08 billion at Q1-end was also presented as a foundation for future revenue.
The company was selected for the Ministry of SMEs and Startups' Jump-Up Program, receiving up to KRW 750 million in vouchers and consulting support over three years.
Management purchased shares on the open market in August 2026, and the company also passed a resolution to convert capital reserves to fund tax-exempt dividends. Continued dividend payments since listing are another factor worth noting from a shareholder-return perspective.
The 2025 operating margin fell sharply to 4.0% from 10.1% in 2024, and it declined again from 8.1% to 6.4% in Q1 2026. The company attributed this to preemptive investment in AX-related headcount, but it remains uncertain when this investment will translate into meaningful revenue and profit. Headcount reached 165 at the end of Q1, up from 153 a year earlier, adding to fixed-cost burden.
The surge in owners' net income in Q2 2026 appears to reflect a substantial disposal gain from the Agile Soda stake sale. Given that Q4 2025 net income was also unusually large relative to operating profit, recent net income improvement may not fully represent repeatable core operating earnings power. Future performance should be assessed once these non-recurring items are stripped out.
Numerous IT firms are rebranding around AI and AX themes and entering the market with similar positioning, intensifying competition. AX-related revenue share stood at around 15% as of Q2 2026, meaning traditional rule-engine and maintenance revenue still accounts for the majority.
As more large clients, including banks, directly acquire AI firms, there is also a possibility that more customers choose to build internal capability rather than purchase external solutions.
The AX new business still accounts for only a portion (around 15%) of total revenue, carrying the risk that its pace of replacing or growing beyond the existing business could be slower than expected. Continued fixed-cost increases from AI headcount expansion could keep pressuring the operating margin.
Operating cash flow (CFO) was negative KRW 1.57 billion in 2025, indicating a gap between accounting net income and actual cash generation. Because quarterly net income is heavily influenced by non-recurring items, predictability of future results may be reduced.
Agile Soda, the company InnoAX invested in, was reportedly facing complete capital impairment and going-concern uncertainty at one point, meaning the value of the remaining convertible bonds and equity stake could vary depending on the investee's future management condition.
There is also a possibility that collaboration terms could change during the integration process following the transfer of control to Nonghyup Bank.
Check the Q3 2026 earnings disclosure for whether the expansion in AX revenue share and operating margin trend continues, and whether additional Agile Soda-related gains or losses are reflected.
Confirm whether the previously announced Rule Copilot and AI governance platform are actually launched and gauge initial customer reception.
Review the 2026 annual business report for equity-method gains/losses tied to the remaining Agile Soda stake and convertible bonds, and the full-year contribution from the SJ Link consolidation.
Continue monitoring progress on AX platform upgrades under the Jump-Up Program and watch for new order disclosures.
InnoAX is attempting a business transformation into the AX space, leveraging over two decades of rule-engine technology accumulated under its former name, while securing scale and cash through a series of M&A and investment activities including the SJ Link consolidation and the Agile Soda investment and subsequent partial sale.
H1 2026 revenue reached a half-year record and the AX revenue share is expanding, suggesting early results from the business restructuring are becoming visible.
However, the 2025 operating margin declined sharply from the prior year, and the surge in Q2 2026 net income appears to include a substantial non-recurring gain from the Agile Soda stake sale, making it important to separately assess earnings power from core operations.
On the competitive front, numerous IT firms are similarly repositioning around AI and AX, requiring ongoing monitoring of market positioning, while cases of large clients such as banks directly acquiring AI firms are another variable to watch.
Continued dividends and management's open-market share purchases can be read as positive signals for shareholder returns, but these too should be judged alongside the sustainability of future earnings.
Overall, the key point to watch going forward is the balance between the direction and early results of the new-business transition and the quality of earnings—core operations versus non-recurring items.
Report written 2026-09-05 · Data as of 2026-09-04
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.