KOSDAQBiotech & Pharma328130

Lunit

₩10,570▼ 4.77%2026-10-02 close

Market Cap

₩787B

Turnover

₩5.9B

Volume

550K

Shares out.

74.5M

PER

—

PBR

—

EPS

-₩1,104

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

Fast Revenue Growth, Losses Still the Key Variable

Lunit's revenue is expanding quickly on the back of the Volpara acquisition, but large operating losses and cash outflows persist, making the year-end breakeven target the market's key focal point.

1
2025 consolidated revenue rose 53.4% year over year to a record KRW 83.1 billion, but the operating loss also widened to KRW 83.1 billion.
2
Revenue growth continued into Q1 and Q2 of 2026, while the scale of operating losses eased somewhat versus the same periods in 2025.
3
In early 2026, a KRW 250 billion rights offering combined with a bonus issue removed the put-option risk tied to convertible bonds issued for the Volpara acquisition.
4
The company has set a goal of reaching EBITDA breakeven by the end of 2026 through cost efficiency measures and second-half revenue concentration.
5
More than 95% of revenue is generated overseas, with the U.S. breast cancer screening market serving as the core growth engine.

Business structure

Lunit is a KOSDAQ-listed medical AI company that develops deep-learning-based software to analyze chest and breast medical images for cancer screening and treatment support, supplying hospitals and pharmaceutical companies.

The business is organized around two pillars, Cancer Screening and Oncology, and as of Q1 2026 the Cancer Screening segment accounted for 88.74% of total revenue, cementing its position as the core business.

The Cancer Screening segment consists of Lunit's own chest X-ray and mammography reading-assist product 'Lunit INSIGHT' and the breast cancer screening software of Volpara Health Technologies (now Lunit International), a New Zealand company acquired in 2024.

Volpara has been described as supplying AI solutions to more than 2,000 healthcare institutions in the United States and holding over 40% share of the U.S. medical AI breast screening market.

In 2026, Lunit completed an organizational overhaul that unified the Lunit and Volpara brands under 'One Lunit,' renaming Volpara's parent company 'Lunit International' and its U.S. subsidiary 'Lunit Americas.' The Oncology segment centers on the AI biomarker platform 'Lunit SCOPE,' with most revenue coming from service fees, used by global pharmaceutical partners for patient selection and treatment-response prediction in drug development.

Pharmaceutical inquiries into 'Lunit SCOPE uIHC,' related to antibody-drug conjugate (ADC) therapeutics, have recently increased.

Revenue is split 97% overseas and 3% domestic, reflecting a business structure built almost entirely around global markets, with most revenue recognized through long-term, subscription-based SaaS contracts that create a recurring revenue base.

Competitively, the company contends with domestic medical AI peers and overseas breast-screening AI companies for market share.

Earnings trend

Quarterly revenue · Operating profit

₩17.9B-₩21.2B25Q2₩19.6B-₩21.6B25Q3₩26.5B-₩19.6B25Q4₩24B-₩13.6B26Q1₩21.8B-₩15.4B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩13.9B-₩50.7B2022₩25.1B-₩42.2B2023₩54.2B-₩67.7B2024₩83.1B-₩83.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩17.9B	-₩21.2B	−118.9%
2025Q3	₩19.6B	-₩21.6B	−110.1%
2025Q4	₩26.5B	-₩19.6B	−74.2%
2026Q1	₩24B	-₩13.6B	−56.8%
2026Q2	₩21.8B	-₩15.4B	−70.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩13.9B	-₩50.7B	-₩39.1B	−365.3%	−56.8%	41.0%
2023	₩25.1B	-₩42.2B	-₩36.8B	−168.3%	−15.7%	14.0%
2024	₩54.2B	-₩67.7B	-₩82.4B	−124.9%	−50.0%	163.9%
2025	₩83.1B	-₩83.1B	-₩47.4B	−100.0%	−34.5%	169.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

2025 consolidated revenue reached KRW 83.13 billion, up 53.4% from KRW 54.18 billion in 2024 and a record high, yet the operating loss widened to KRW 83.10 billion from KRW 67.67 billion a year earlier, leaving the operating margin at -100.0%. The net loss narrowed to KRW 47.39 billion from KRW 82.42 billion in 2024.

From 2022 through 2025, revenue grew sharply from KRW 13.87 billion to KRW 25.08 billion to KRW 54.18 billion to KRW 83.13 billion, but operating losses over the same span also widened continuously from KRW 50.65 billion to KRW 42.22 billion to KRW 67.67 billion to KRW 83.10 billion, showing that top-line expansion and profitability improvement have not yet moved in tandem.

On a quarterly basis, after posting revenue of KRW 17.87 billion, an operating loss of KRW 21.25 billion, and a net loss of KRW 35.10 billion in Q2 2025, the company recorded revenue of KRW 19.58 billion and an operating loss of KRW 21.56 billion in Q3 2025 yet swung to a net profit of KRW 18.12 billion, a result driven by non-operating items that should be read separately from underlying operating performance.

Q4 2025 revenue hit a new quarterly record of KRW 26.48 billion, but the net loss widened again to KRW 32.45 billion.

Moving into 2026, revenue of KRW 23.95 billion with an operating loss of KRW 13.59 billion in Q1 and revenue of KRW 21.81 billion with an operating loss of KRW 15.37 billion in Q2 showed continued revenue growth alongside a somewhat narrower operating loss compared with the same periods in 2025.

Over the trailing four quarters (Q3 2025 through Q2 2026), combined revenue was approximately KRW 91.82 billion while the net loss attributable to owners was approximately KRW 55.69 billion, confirming that losses persist even on an annualized basis.

Operating cash flow registered net outflows of KRW 53.02 billion in 2022, KRW 36.47 billion in 2023, KRW 65.70 billion in 2024, and KRW 55.18 billion in 2025 every year, indicating that revenue expansion has not yet translated directly into improved cash generation.

Industry analysis

The medical-imaging AI reading-assist market remains in an early expansion phase, with a shortage of radiology specialists cited as a key growth driver.

Around the time of the Volpara acquisition, it was noted that U.S. radiologists faced such heavy workloads that they had to interpret one image roughly every three to four seconds across an eight-hour workday. Additionally, the U.S.

Preventive Services Task Force (USPSTF) lowering its recommended breast cancer screening age from 50 to 40, with biennial mammography for women aged 40 to 75, has been identified as a factor expanding U.S. screening demand.

Domestically, however, the regulatory framework lags behind the U.S.; Lunit INSIGHT's chest X-ray (CXR) product has a designated non-reimbursement usage period in Korea running through February 2027, leaving the transition to national health insurance coverage as an open question.

In terms of revenue structure, long-term contract-based subscription (SaaS) revenue makes up the majority of sales, creating a recurring and relatively predictable revenue pattern.

Competitively, domestic medical AI companies and overseas breast-screening AI companies are each expanding their regional footholds, and Lunit is leveraging the U.S. hospital network gained through the Volpara acquisition as a competitive advantage.

In the Oncology segment, biomarker collaborations with global big pharma companies are expanding, marking an early-stage transition from research-service revenue toward a more structural revenue base.

Outlook

The company has stated that it maintains its goal of reaching EBITDA breakeven by the end of 2026, based on cost efficiency measures and a revenue structure concentrated in the second half.

To this end, it carried out workforce reductions of roughly 15% starting last year and has outlined plans to cut this year's operating expenses by about 20% year over year through various efficiency measures.

CEO Suh Beom-seok has emphasized achieving both revenue growth and cost-reduction targets to reach EBITDA profitability by year-end, and has further set a goal of turning operating-profit positive in 2027.

The company projects 2026 revenue growth of 40% to 50% year over year, expecting Lunit INSIGHT and Volpara product sales to grow in tandem as acquisition synergies are fully reflected.

Because pharmaceutical collaboration revenue recognition is concentrated in the second half, the company expects Lunit SCOPE revenue growth to accelerate toward the fourth quarter, with full-year growth of two- to three-fold versus the prior year.

On the financial front, the roughly KRW 250 billion rights offering and bonus issue completed in early 2026 removed the put-option risk tied to convertible bonds issued for the Volpara acquisition, with the existing-shareholder subscription rate reaching 104.7%.

CEO Suh stated that this rights offering would be Lunit's 'last capital raise,' framing 2026 as the year to demonstrate sustainable profitability.

Valuation

PER

—

PBR

—

ROE

-23.5%

EPS

-₩1,104

BPS

—

Dividend per share

₩0

Lunit remains in a net-loss position, making profit-based valuation metrics difficult to compute, and the market appears to weigh both revenue growth and the pace of loss reduction when assessing value.

Because share count increased following the early-2026 rights offering and bonus issue, per-share metrics should be interpreted with dilution effects in mind.

The stock trades at a certain premium to net asset value, and the size of that premium is cited as a factor that could shift depending on whether the EBITDA breakeven target is met and whether revenue growth proves durable. No dividend is currently paid, so dividend-related metrics carry little meaning at this stage.

Any specific valuation judgment should be made alongside upcoming disclosed results and the trajectory of loss reduction.

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 2026-09-04

Bull factors

Expansion in the North American Breast Screening Market

North American cancer screening revenue in H1 2026 grew 30% year over year, indicating that the strategy of cross-selling and upselling Lunit INSIGHT products through Volpara's existing hospital network is gaining traction.

In addition, the USPSTF's lowering of the recommended breast cancer screening age from 50 to 40 acts as a structural demand driver by expanding the eligible screening population in the U.S.

Volpara's network of over 2,000 healthcare institutions provides a base for generating incremental revenue without needing to build new distribution channels.

Profit Leverage Through Cost Efficiency

The company is pursuing a plan to cut its workforce by roughly 15% and reduce operating expenses by about 20% year over year, aiming to reach annual EBITDA breakeven. In H1 2026, the operating loss and EBITDA loss actually narrowed by about 31% and 50%, respectively, providing some confirmation of cost-control effects. If revenue growth and cost reduction continue simultaneously, operating leverage could materialize.

Revenue Diversification via Lunit SCOPE

Since launching research-use products in 2023, the number of pharmaceutical partners with cumulative revenue in the hundreds of millions of won has grown to more than 15, with over five exceeding KRW 1 billion, and one global big pharma partner has surpassed KRW 5 billion in cumulative revenue.

The company expects Lunit SCOPE revenue to grow two- to three-fold this year, and actual H1 2026 revenue already rose 114% year over year. Growing pharmaceutical inquiries related to antibody-drug conjugate (ADC) products suggest the Oncology segment's revenue base is becoming increasingly structured.

Bear factors

Persistent Large Losses and Cash Outflow

From 2022 through 2025, revenue grew significantly every year, but the operating loss also widened each year, reaching KRW 83.1 billion in 2025. Operating cash flow has also posted large net outflows for four consecutive years, and revenue expansion has not yet translated into improved cash generation. Some observers note that high revenue growth has come from investing even larger amounts of expense.

Financial Structure Burden from the Volpara Acquisition

The possibility of put-option exercise on convertible bonds issued for the 2024 Volpara acquisition heightened financial uncertainty, prompting a roughly KRW 250 billion rights offering and a one-for-one bonus issue in early 2026 to resolve the risk.

The new share issuance diluted existing shareholders' stakes by 27%, and the bonus issue further increased share count, warranting caution in interpreting per-share metrics. While the company stated this would be its 'last capital raise,' the possibility of future funding needs cannot be entirely ruled out.

Execution Risk Around the EBITDA Breakeven Target

Whether the company achieves its stated annual EBITDA breakeven target depends on pharmaceutical collaboration revenue being recognized on schedule in the second half and on continued cost efficiency that began in H1.

Because revenue recognition is concentrated in specific quarters, particularly Q4, any contract delays or timing shifts could push back the target date. Given the significant quarter-to-quarter earnings volatility seen in the past, the consistency of profitability improvement warrants continued monitoring.

Risk factors

Financial and Capital-Raising Risk

Lunit has raised external funding through convertible bonds and large-scale rights offerings during its growth phase, repeatedly diluting existing shareholders in the process.

Operating cash flow has posted net outflows for multiple years, and if further profitability improvement is delayed, the need for additional fundraising cannot be ruled out.

While the company has framed the recent rights offering as its final capital raise, this is premised on earnings improvement proceeding as planned.

Regulatory and Reimbursement Risk

In Korea, Lunit INSIGHT's CXR product has a designated non-reimbursement usage period through February 2027, leaving the terms and likelihood of subsequent national health insurance coverage uncertain.

Overseas, the timing of regulatory clearances (such as FDA approval) for new products can directly affect the pace of revenue expansion. While policy changes such as the U.S. breast screening guideline update have been favorable, the possibility of future policy reversals cannot be excluded.

Intensifying Competition Risk

Domestic and overseas medical AI companies are expanding solutions in similar areas such as breast cancer screening and chest imaging interpretation, raising the possibility of intensified price and channel competition.

While Lunit leverages the U.S. hospital network gained through the Volpara acquisition as a competitive edge, rival companies could pursue similar acquisition or partnership strategies.

In the Oncology segment as well, multiple AI biomarker companies compete for collaboration opportunities with global big pharma partners.

What to watch next

Mid-November 2026
Based on typical disclosure timing, Q3 2026 results are expected to be released around this period, warranting a check on whether revenue growth continues and operating losses keep narrowing.
December 2026
This is the point at which to verify whether the company actually achieves its stated goal of full-year EBITDA breakeven.
Q4 2026
This period sees concentrated recognition of pharmaceutical collaboration revenue, making whether Lunit SCOPE sales accelerate as planned a key variable for meeting annual targets.
February 2027
This marks the expiration of the domestic non-reimbursement usage period for Lunit INSIGHT's CXR product, requiring a check on whether and under what terms national health insurance coverage follows.

Overall view

Driven by the Volpara acquisition, Lunit's revenue has grown sharply every year since 2022, reaching KRW 83.13 billion in 2025, but the operating loss has widened in tandem to KRW 83.10 billion, indicating that top-line growth and profitability improvement have not yet occurred simultaneously.

In H1 2026, revenue growth continued while operating losses showed some signs of narrowing, and the company has set a goal of reaching EBITDA breakeven by year-end.

On the financial front, the put-option risk tied to convertible bonds issued for the Volpara acquisition was resolved through a large rights offering and bonus issue in early 2026, though this diluted existing shareholders.

Most revenue comes from overseas, particularly the U.S. breast cancer screening market, where changing U.S. policy has been a backdrop for expanding demand. Domestically, however, the reimbursement framework is progressing more slowly, creating divergent growth speeds across regions.

Going forward, key points to watch will be whether second-half revenue recognition and cost control proceed as planned to meet the annual EBITDA target, and whether new revenue sources such as Lunit SCOPE become an established structural revenue base.

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.