KOSDAQIT & Software393210

Tomatosystem

₩3,430 0.00%2026-10-02 close

Market Cap

₩53.6B

Turnover

₩1.4B

Volume

410,000 shares

Shares out.

15.6M

PER

143.4×

PBR

1.3×

EPS

₩16

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

Turning the Corner: Watching for a Sustained Profit Recovery

TomatoSystem has posted two consecutive quarters of operating profit in 2026 alongside rising order backlogs, but net income volatility and a sharp rise in the debt ratio remain notable balance-sheet concerns.

1
FY2025 revenue rose 26.1% year over year to KRW 27.26 billion, but the company posted an operating loss of KRW 2.37 billion, its second annual loss in four years.
2
The company returned to operating profit in both Q1 2026 (KRW 240 million) and Q2 2026 (KRW 20 million), yet Q2 net income attributable to owners swung to a loss of KRW 237 million, underscoring sizable one-off volatility below the operating line.
3
Order backlog reached KRW 23.6 billion in Q1 2026, up 22.9% year over year and marking a third consecutive year of growth.
4
US subsidiary CyberMDCare (CMD) is expanding into the Medicare Advantage market with its NOVA digital healthcare platform and has signed a service operations contract with a Texas-based health insurer.
5
The FY2025 debt ratio jumped to 130.9% from 28.5% a year earlier, while non-controlling interest turned negative at KRW -1.16 billion.

Business structure

Founded in 2000, TomatoSystem is an IT solutions company built around three pillars: university ERP systems, a web-standard UI/UX development platform, and a US-based digital healthcare business.

Its university ERP product, eXCampus, serves more than 150 of Korea's roughly 400 universities and reportedly has a 75% renewal rate, supporting a stable base of recurring revenue.

The UI/UX platform eXBuilder6 has evolved into eXBuilder6 AIGen, which incorporates generative AI, and the company has been extending its customer base into finance, public sector, and manufacturing. As of Q1 2026, revenue was split between solution sales (62.2%) and maintenance/technical services (37.8%).

Beyond university informatization projects at institutions such as Jeonbuk National University, Wonkwang University, Korea University, and Seoul National University, the company has expanded UI/UX platform deployments to financial firms such as Meritz Securities and Heungkuk Fire & Marine, as well as to construction company Daewoo E&C.

In the United States, its subsidiary CyberMDCare (CMD) has developed the NOVA digital healthcare platform, offering remote patient monitoring and annual wellness visit services targeting the Medicare and Medicare Advantage markets.

In March 2026 the company brought in a new co-CEO alongside its existing CEO, with one executive overseeing long-term growth strategy and new business, and the other leading sales and core solution operations. The founder and several key executives share a common background at LG CNS.

Earnings trend

Quarterly revenue · Operating profit

₩5.9B-₩800M25Q2₩7B-₩800M25Q3₩8.8B-₩45,278,36525Q4₩8.3B₩200M26Q1₩8.4B₩21,406,70926Q2

RevenueOperating profit

Annual revenue · Operating profit

₩27.1B₩7.5B2022₩26.6B₩2.8B2023₩21.6B-₩3.4B2024₩27.3B-₩2.4B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩5.9B	-₩800M	−12.8%
2025Q3	₩7B	-₩800M	−11.0%
2025Q4	₩8.8B	-₩45,278,365	−0.5%
2026Q1	₩8.3B	₩200M	2.9%
2026Q2	₩8.4B	₩21,406,709	0.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩27.1B	₩7.5B	₩4.6B	27.5%	36.0%	36.1%
2023	₩26.6B	₩2.8B	₩3.3B	10.6%	11.0%	26.0%
2024	₩21.6B	-₩3.4B	-₩1.6B	−15.8%	−5.7%	28.5%
2025	₩27.3B	-₩2.4B	-₩2B	−8.7%	−7.7%	130.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

On an annual basis, revenue was KRW 27.09 billion in FY2022 with an operating profit of KRW 7.46 billion (27.5% operating margin), a period of relatively high profitability. That margin narrowed in FY2023, when revenue was KRW 26.57 billion and operating profit was KRW 2.82 billion (10.6% margin).

Revenue then fell sharply to KRW 21.62 billion in FY2024, and the company posted its first major operating loss of KRW 3.41 billion (-15.8% margin).

In FY2025, revenue recovered 26.1% year over year to KRW 27.26 billion, but the operating loss persisted at KRW 2.37 billion (-8.7% margin), and net income attributable to owners remained negative at KRW -2.00 billion, although the scale of losses moderated from FY2024.

Quarterly, losses continued through Q2 2025 (revenue KRW 5.86 billion, operating loss KRW 0.75 billion) and Q3 2025 (revenue KRW 6.97 billion, operating loss KRW 0.77 billion), before narrowing to near breakeven in Q4 2025 (revenue KRW 8.85 billion, operating loss KRW 0.045 billion).

Q1 2026 marked a turn to quarterly operating profit, with revenue of KRW 8.28 billion and operating profit of KRW 0.24 billion, alongside a notably large net profit attributable to owners of KRW 1.45 billion.

Q2 2026 continued the operating profit trend with revenue of KRW 8.42 billion and operating profit of KRW 0.02 billion, but net income attributable to owners reversed to a loss of KRW -0.24 billion, creating a gap between operating and bottom-line results.

Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative net income attributable to owners stood at roughly KRW 249 million, a modest but positive figure.

Industry analysis

Korea's university ERP market is seen as benefiting from structural demand tied to declining student populations, prompting universities to automate administration and replace aging systems, alongside government policies such as the 'Glocal University 30' regional university development initiative.

Independent research house ARIS, in a report published in June 2026, assessed that the university ERP business had entered a growth phase alongside major government education policy.

In the UI/UX development platform space, competition is intensifying around low-code and generative-AI-assisted tools, and the company is responding with eXBuilder6 AIGen.

Expanding digital transformation (DX) demand in the public and financial sectors is also cited as a growth driver for UI/UX platform and systems integration business.

The US digital healthcare market is shifting toward value-based care as CMS rolls out its V28 HCC model, requiring more precise management of patient clinical data—a trend cited as increasing demand for digital platforms among Medicare Advantage insurers.

That said, this market features established healthtech competitors, and new entrants require time and investment to achieve scale.

Within Korea's domestic IT services sector, TomatoSystem holds a leading position in the niche university-focused ERP market, but its overall revenue scale remains that of a small-cap KOSDAQ company, limiting the scope for diversification compared with larger systems integrators.

Outlook

The company has stated plans to expand its AI solutions business in the second half of 2026, centered on eXBuilder6 AIGen.

As of Q1 2026, the largest order backlog contracts were with Wonkwang University (KRW 5.69 billion), Seoul National University (KRW 3.0 billion), Daewoo E&C (KRW 2.58 billion), Jeonbuk National University (KRW 1.21 billion), and Korea University (KRW 1.19 billion); since many of these projects recognize revenue in stages as construction progresses, the company describes its earnings visibility as relatively high.

In the United States, CMD signed a contract with Texas-based insurer Medcare Partners for integrated operation of an insurance portal and digital healthcare platform, and the company has been accelerating intellectual property protection for its NOVA platform, filing three full patent applications and more than 20 provisional applications with the USPTO.

Management has said that digital transformation demand centered on the public and financial sectors is driving increased order intake, and that it is expanding beyond university ERP into the manufacturing sector.

Still, how reliably this new order intake and new business investment will translate into sustained profit improvement requires further confirmation in upcoming quarterly results.

The two consecutive quarters of operating profit in early 2026 are a positive signal, but quarterly net income volatility means the quality and stability of earnings has not yet been fully demonstrated.

Valuation

PER

143.4×

PBR

1.3×

ROE

0.9%

EPS

₩16

BPS

₩1,734

Dividend per share

₩0

The current share price is being evaluated against a earnings history that has swung between losses and profits in recent years, making direct comparison with valuation multiples from periods of stable profitability difficult.

Relative to net asset value, the stock appears to trade at a modest premium, which can be interpreted as reflecting the market's growth expectations tied to the university ERP upcycle narrative and the US healthcare new business.

The company has not paid a cash dividend in recent years, suggesting capital is being prioritized toward new business investment and balance sheet stabilization rather than shareholder returns.

While quarterly operating profit turned positive in 2026, net income volatility remains significant, and how this earnings stability feeds into valuation will require further quarters of accumulated results to assess.

On balance, the current valuation appears to be a segment where the assessment could shift depending on how the gap between market expectations for a sustained earnings recovery and actual results narrows over time.

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 2026-09-05

Bull factors

University ERP Upcycle and Rising Backlog

In a June 2026 report, independent research house ARIS assessed that the university ERP business had entered a growth phase alongside major government education policy. The company's order backlog reached KRW 23.6 billion in Q1 2026, up 22.9% year over year, marking a third consecutive year of growth.

It serves more than 150 of Korea's roughly 400 universities with a reported 75% renewal rate, giving it a broad recurring-revenue base. Demand for replacing aging systems amid declining student populations, together with regional university development policy, has been cited as a potential source of further orders.

Return to Quarterly Operating Profit

Operating profit turned positive in both Q1 and Q2 2026, marking a departure from the operating losses that persisted through 2024 and 2025. First-half revenue rose 46% year over year to KRW 16.699 billion, reflecting solid growth in the 40% range.

The company attributed the improvement to stable progress on next-generation university informatization projects and public/financial sector projects, along with expansion of the UI/UX platform business.

The pattern of narrowing losses over consecutive quarters before turning positive could be read as a signal of improving cost structure.

US Digital Healthcare Expansion

US subsidiary CMD is expanding its Medicare Advantage-focused business through its NOVA digital healthcare platform. In June 2026, it signed a contract with Texas-based insurer Medcare Partners for integrated operation of an insurance portal and healthcare platform.

The company has also filed three full patent applications and more than 20 provisional applications with the USPTO covering NOVA's core technology, moving to secure intellectual property. Management expects the shift toward value-based care under CMS's V28 HCC model to generate new demand.

Bear factors

Gap Between Operating Profit and Net Income

In Q2 2026, despite positive operating profit, net income attributable to owners fell to a loss of KRW -237 million, highlighting significant volatility in non-operating items.

Conversely, in Q1 2026 net income of KRW 1.45 billion far exceeded operating profit of KRW 240 million, showing inconsistent earnings quality across quarters. This volatility makes it difficult for investors to judge the persistence of earnings improvement from quarterly figures alone.

Confirming whether operating profit and net income move in the same direction over the next several quarters will be important.

Rising Balance Sheet Strain

The FY2025 debt ratio rose sharply to 130.9% from 28.5% in FY2024, and total liabilities jumped from KRW 7.8 billion to KRW 32.4 billion. Over the same period, non-controlling interest turned negative at KRW -1.16 billion, suggesting accumulated losses at consolidated subsidiaries (potentially including the US unit).

Equity attributable to owners declined from KRW 27.78 billion in FY2024 to KRW 25.89 billion in FY2025. This shift in balance sheet structure is also tied to the company's future capacity to fund continued new-business investment.

Recurring Multi-Year Earnings Cycles

The company recorded a high operating margin of 27.5% in FY2022, then saw margins contract in both FY2023 and FY2024, culminating in a large loss in FY2024. Revenue recovered in FY2025, but the operating loss continued, and it was not until the first half of 2026 that the company returned to profit.

These swings appear tied to a business structure sensitive to the timing of large project revenue recognition and one-off costs. Given this history of cycles, whether the recent return to profit proves durable will require verification over additional quarters.

Risk factors

Earnings Volatility Risk

Given the large gap between quarterly operating profit and net income, and a four-year history of alternating annual profits and losses, the predictability of future earnings remains limited. Quarterly results can swing significantly depending on the timing of revenue recognition for large projects.

Investors may need to examine trends across multiple quarters rather than relying on a single quarter's results.

Balance Sheet Risk

The sharp rise in the FY2025 debt ratio to 130.9%, together with non-controlling interest turning negative, suggests possible accumulated losses at the subsidiary level. As investment in the new US healthcare business continues, the possibility of additional funding needs or balance sheet strain cannot be ruled out.

Whether the balance sheet structure improves will need to be monitored through future quarterly and annual disclosures.

New Business Execution Risk

The US digital healthcare business depends on evolving CMS regulatory models and negotiations with insurers, so the pace and scale of new contracts may fall short of expectations.

Currency fluctuations, changes in US healthcare regulation, and competition from local players are variables that could affect the pace of expansion. It may take time before newly filed patents translate into actual revenue growth.

What to watch next

Mid-November 2026
The Q3 2026 earnings release will show whether the operating profit trend extends to a third consecutive quarter and whether net income volatility eases.
Q4 2026
Watch for whether CMD signs additional insurer/health-plan contracts and how quickly NOVA platform revenue is recognized.
Q4 2026 to early 2027
Check for new large university ERP contract wins and the revenue-recognition progress of existing projects (e.g., Wonkwang University, Seoul National University).
Around March 2027 (FY2026 annual report filing)
The FY2026 annual report will reveal whether the debt ratio and non-controlling interest trends show balance sheet improvement.

Overall view

TomatoSystem posted two consecutive quarters of operating profit in the first half of 2026, signaling a possible exit from the losses seen in 2024–2025, though net income has moved in the opposite direction from operating profit in some quarters, meaning the stability of earnings quality is still being tested.

The university ERP business has built a base of recurring revenue, supported by three consecutive years of order backlog growth and a high renewal rate, with major government education policy cited as a favorable backdrop.

At the same time, the US digital healthcare new business is adding a medium-to-long-term growth pillar through CMD's expansion into the Medicare Advantage market.

However, the sharp rise in the FY2025 debt ratio to 130.9% and the shift of non-controlling interest into negative territory point to financial strain associated with new business investment.

On balance, the company has secured early signs of revenue recovery and a return to profit, but faces the dual challenge of sustaining earnings and stabilizing its balance sheet. Tracking both quarterly results and annual balance sheet metrics going forward would help inform further assessment.

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.