KOSDAQIT & Software303530

Innodep

₩3,025▲ 0.50%2026-10-02 close

Market Cap

₩21.7B

Turnover

₩27,123,135

Volume

9,066 shares

Shares out.

7.3M

PER

—

PBR

0.7×

EPS

-₩459

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

Overseas Orders Sought Amid Public-Sector Slowdown

InnoDep, holding an established position in local government integrated control center systems, is navigating an earnings downturn driven by delayed public-sector orders while seeking a rebound through carryover orders and Latin American exports.

1
2025 consolidated revenue fell 18.5% year-over-year to KRW 70.7 billion, with both operating loss and net loss widening.
2
The operating loss widened to KRW 3.65 billion in Q1 2026, but the loss narrowed in Q2 2026 as revenue recovered.
3
Carryover orders for 2026 rose about 36% year-over-year to roughly KRW 22.6 billion, pre-securing part of this year's revenue base.
4
The company expanded its Latin American export track record by signing an approximately KRW 7.3 billion AI surveillance infrastructure expansion contract with the Belize government.
5
The debt ratio rose from 38.1% in 2023 to 101.2% in 2025, and operating cash flow also turned negative in 2025.

Business structure

InnoDep is a KOSDAQ-listed IT company that supplies AI video surveillance (VMS) and smart-city platforms built around object-recognition-based video data processing technology.

The company holds a substantial share of the nationwide local-government integrated control center market and centers its business on integrated control platforms that connect heterogeneous CCTV and IoT devices.

Its main product lineup includes an intelligent VMS, a control-metadata analytics dashboard called DMS-BI, compressed video stream-based Tiered AI, Smart AI Monitoring for selective surveillance, and cloud-based VSaaS.

Its customer base is centered on local government integrated control centers, national infrastructure, and public institutions, giving it a recurring revenue structure that includes maintenance services.

More recently, the company has been preparing a platform-business expansion through its next-generation platform VUNex, running proof-of-concept trials in North America, Japan, and Southeast Asia.

It is also pursuing a SaaS-based service called 'Our Child AI' targeted at daycare centers and kindergartens as a new consumer-facing business line.

InnoDep signed an MOU with network security firm Xgate to combine quantum encryption (Q-VPN) technology with AI-based surveillance, aiming to jointly enter smart-city markets in Southeast Asia and the Middle East.

In overseas business, the company has been building a Latin American track record on the back of a CCTV and 911 integrated control contract with the Belize government.

Earnings trend

Quarterly revenue · Operating profit

₩19.7B₩400M25Q2₩13.5B-₩2.2B25Q3₩28.2B₩2.5B25Q4₩8.5B-₩3.6B26Q1₩19.2B-₩600M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩76.4B₩400M2022₩84B₩600M2023₩86.8B-₩1.9B2024₩70.7B-₩2.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩19.7B	₩400M	1.8%
2025Q3	₩13.5B	-₩2.2B	−15.9%
2025Q4	₩28.2B	₩2.5B	9.0%
2026Q1	₩8.5B	-₩3.6B	−42.8%
2026Q2	₩19.2B	-₩600M	−3.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩76.4B	₩400M	₩600M	0.5%	1.4%	41.5%
2023	₩84B	₩600M	₩1B	0.8%	2.6%	38.1%
2024	₩86.8B	-₩1.9B	-₩1.5B	−2.2%	−4.1%	70.1%
2025	₩70.7B	-₩2.9B	-₩3B	−4.1%	−8.7%	101.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

InnoDep's annual results shifted from profitability in 2022-2023 to losses in 2024-2025.

Revenue rose from KRW 76.4 billion in 2022 to KRW 84.0 billion in 2023 and KRW 86.8 billion in 2024, before falling to KRW 70.7 billion in 2025, while operating profit of KRW 0.41 billion and KRW 0.64 billion in 2022-2023 turned into operating losses of KRW 1.93 billion in 2024 and KRW 2.90 billion in 2025.

Net income followed the same pattern, moving from gains of KRW 0.56 billion and KRW 1.03 billion in 2022-2023 to losses of KRW 1.54 billion in 2024 and KRW 3.02 billion in 2025.

On a quarterly basis, revenue of KRW 13.5 billion and an operating loss of KRW 2.16 billion in Q3 2025 gave way to a sharp seasonal improvement in Q4 2025, with revenue of KRW 28.2 billion and operating profit of KRW 2.54 billion.

However, Q1 2026 revenue fell sharply to KRW 8.5 billion with the operating loss widening to KRW 3.65 billion, before revenue recovered to KRW 19.2 billion in Q2 2026 and the operating loss narrowed to about KRW 0.60 billion.

Over the trailing four quarters (Q3 2025 through Q2 2026), the net loss attributable to owners totaled approximately KRW 3.26 billion.

On the balance sheet, the debt ratio climbed rapidly from 38.1% in 2023 and 70.1% in 2024 to 101.2% in 2025, and operating cash flow flipped from an inflow of KRW 5.38 billion in 2024 to an outflow of KRW 4.33 billion in 2025.

The company attributed the widening losses to a combination of increased R&D spending to upgrade its next-generation video analytics platform and temporary order delays in the public sector.

Industry analysis

The intelligent video surveillance and smart-city market that InnoDep operates in is heavily influenced by public-sector budget execution cycles. Orders from local government integrated control centers tend to concentrate toward year-end based on budget timing, producing pronounced seasonality in the company's results.

In 2025, the industry experienced a slowdown as reduced public-sector IT investment and budget execution delays caused both video recognition revenue and project orders to decline in tandem.

The company has been investing preemptively in smart-city platforms built on AI, digital twin, and cloud technologies, and is developing cloud-based video analytics solutions aimed at developing markets such as Latin America as well as North America and Europe.

In the domestic market, InnoDep's established base within local government integrated control centers is a competitive advantage, though competitor entry is also continuing as intelligent selective-surveillance systems become more widely adopted.

Overseas, amid rising demand for urban safety infrastructure covering public security, disaster response, and traffic management, InnoDep is attempting to expand from a procurement-market-centered vendor into a global urban safety platform company by securing references through competitive public tenders such as the one in Belize.

Outlook

The company has presented three pillars for its 2026 business direction: maintaining its public-sector base, expanding next-generation platforms, and growing overseas revenue.

With roughly KRW 22.6 billion in carryover orders, part of this year's revenue has already been secured, and in February the company was selected for the Gwangju R&D Special Zone Advanced Complex 3 smart-service construction project (total order value of about KRW 6.35 billion, with InnoDep's share around KRW 4.45 billion).

Overseas, InnoDep signed an approximately KRW 7.3 billion AI surveillance infrastructure expansion contract with the Belize government through a public tender, disclosed as a single sales contract exceeding 10% of the prior year's revenue.

The company said it plans to use this contract as a key reference for its Latin American market entry, targeting additional orders of $5 million or more.

Its next-generation platform VUNex is undergoing proof-of-concept testing in North America, Japan, and Southeast Asia, and whether these trials convert into actual contracts remains a point to watch.

'Our Child AI' is being expanded as a SaaS model, and the security collaboration with Xgate is at a stage of exploring joint entry into smart-city projects in Southeast Asia and the Middle East.

Management sees the execution of carryover orders and expansion of overseas references as the drivers of an earnings recovery, premised on maintaining financial stability.

Valuation

PER

—

PBR

0.7×

ROE

-10.0%

EPS

-₩459

BPS

₩4,375

Dividend per share

₩0

InnoDep has recently traded at a level where the stock price sits below net asset value on a per-share basis, which can be read as a reflection of the losses that began in 2024 and the subsequent rise in the debt ratio.

Unlike 2022-2023, when the company was profitable, the trailing four quarters have shown continued net losses, making simple comparisons of earnings-based valuation metrics difficult in this period. On dividends, the recent earnings weakness suggests limited capacity for shareholder distributions.

Market views are split between those citing rising carryover orders and expanding overseas references as grounds for a potential earnings rebound, and those flagging the risk that public-sector order delays could recur.

Investors will want to watch whether upcoming quarterly results show sustained margin improvement and whether overseas contracts translate into actual recognized revenue.

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

Bull factors

Expanding Overseas References

InnoDep demonstrated tangible progress in Latin America by winning an approximately KRW 7.3 billion AI surveillance infrastructure expansion contract with the Belize government through a public tender.

Following a roughly $3.9 million Belize CCTV integrated control contract in 2024 and a Million Dollar Export Tower award in 2025, this follow-on deal suggests a potential for recurring overseas revenue. Building on this, the company has set a target of $5 million or more in additional orders.

Revenue Visibility from Carryover Orders

Carryover orders for 2026 rose about 36% year-over-year to roughly KRW 22.6 billion, pre-securing part of this year's revenue base.

The company's established position within local government integrated control centers and its maintenance-centered recurring revenue structure allow it to maintain a certain revenue floor even during periods of weak new order intake. Public-sector orders such as the Gwangju Advanced Complex 3 smart-service project continue to add to this base.

Diversifying New-Business Pipeline

The next-generation platform VUNex is undergoing proof-of-concept testing in North America, Japan, and Southeast Asia, while the SaaS service 'Our Child AI' targeting daycare centers and kindergartens is being pursued as a new growth axis.

The quantum-encryption security collaboration with Xgate targets joint entry into smart-city markets in Southeast Asia and the Middle East. If this pipeline converts into actual contracts, it could help reduce the company's dependence on the public sector.

Bear factors

Dependence on and Volatility of Public-Sector Orders

Consolidated revenue fell 18.5% year-over-year in 2025, driven by reduced public-sector IT investment and budget execution delays that cut both video recognition revenue and project orders.

Quarterly volatility remains high, as seen in Q1 2026 when revenue plunged to KRW 8.5 billion and the operating loss widened to KRW 3.65 billion. This structure, in which results swing heavily with public procurement timing, reduces predictability.

Deteriorating Profitability and Rising Financial Leverage

Operating profit turned from a surplus in 2023 into losses that widened in both 2024 and 2025, with the net loss exceeding KRW 3 billion in 2025. The debt ratio rose rapidly from 38.1% in 2023 to 101.2% in 2025, and operating cash flow flipped from an inflow in 2024 to an outflow of KRW 4.33 billion in 2025. This points to a weakening financial buffer as losses persist.

Overseas Execution Risk

Overseas contracts such as the one in Belize are large enough to be meaningful to revenue but expose the company to country-specific political, currency, and payment-collection risks.

Expansion into new markets such as Latin America, Southeast Asia, and the Middle East requires adapting to regulatory and competitive environments different from the domestic public sector.

The possibility that proof-of-concept trials for new businesses like VUNex fail to convert into actual revenue cannot be ruled out.

Risk factors

Public Budget and Procurement Risk

With a substantial portion of revenue dependent on local government and public-institution procurement, delays or cuts in budget execution have a direct impact on results. The main driver of the 2025 earnings deterioration was reduced public-sector IT investment and delayed budget execution. Similar budget-cycle risks could recur in the future.

Weakening Financial Soundness

The debt ratio rose from 38.1% in 2023 to 101.2% in 2025, and operating cash flow also turned to a net outflow in 2025. If losses continue, the company may need to raise additional capital or increase borrowing.

With the financial buffer already weakened, additional investment burdens could heighten liquidity management risk.

New-Business and Overseas Uncertainty

New businesses such as VUNex, 'Our Child AI,' and the Xgate security collaboration remain at the proof-of-concept or early partnership stage, leaving the timing and scale of actual revenue generation uncertain.

Overseas business carries large single-contract sizes, which can concentrate dependence on specific countries or projects. Growing competitor entry into the intelligent surveillance market is also a factor that could intensify medium- to long-term competition.

What to watch next

Mid-November 2026
The Q3 2026 earnings disclosure (typically due by mid-November) should be checked to see whether the loss-narrowing trend from Q2 continues after the large Q1 loss, and whether early signs of the usual seasonal Q4 improvement appear.
February-March 2027
Around the FY2026 annual results and any accompanying shareholder letter, investors should check the execution rate of carryover orders, whether revenue has recovered, and the trend in the debt ratio.
As disclosed (event-driven)
It is worth monitoring whether the targeted additional Belize order (aimed at $5 million or more) or new contracts in other Latin American or Southeast Asian countries materialize into actual disclosed agreements.
As disclosed (upon PoC results)
Whether VUNex's proof-of-concept trials in North America, Japan, and Southeast Asia convert into commercial contracts, and the progress of customer acquisition for the 'Our Child AI' SaaS service, are also worth tracking.

Overall view

InnoDep is a company that, while holding an established base in the local-government integrated control center market, carries significant earnings volatility tied to the public-sector budget cycle. 2025 revenue fell 18.5% year-over-year with both the operating loss and net loss widening, and while the loss deepened further in Q1 2026, it narrowed somewhat in Q2.

The rise in the debt ratio from 38.1% in 2023 to 101.2% in 2025, along with the shift of operating cash flow into negative territory, points to a weakened financial buffer.

On the other hand, roughly KRW 22.6 billion in carryover orders, an expanding overseas track record including the approximately KRW 7.3 billion Belize government contract, and a new-business pipeline spanning VUNex and 'Our Child AI' have been presented as potential drivers of an earnings rebound.

Ultimately, the company's direction will depend on how quickly its three stated pillars—maintaining its public-sector base, expanding platform business, and growing overseas revenue—translate into actual revenue and profit.

Investors will want to watch both the sustainability of margin improvement in coming quarters and whether overseas and new-business contracts convert into recognized revenue.

Sources

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

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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.