KOSDAQBiotech & Pharma394800

3billion

₩6,030▼ 7.09%2026-10-02 close

Market Cap

₩192.2B

Turnover

₩8.4B

Volume

1.4M

Shares out.

31.8M

PER

—

PBR

—

EPS

—

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

US Market Entry Advances Amid Narrowing Losses

3Billion continues to post revenue growth and a narrowing operating loss ratio in its core AI-based rare disease genomic diagnostics business, with US market entry and drug discovery expansion emerging as the key variables for the next phase.

1
2025 consolidated revenue reached KRW 11.7bn, more than doubling year-on-year, while the operating loss ratio improved from -128.5% to -50.3%
2
Net income turned positive at KRW 6.7bn in Q2 2026, but the company attributed this to non-cash fair-value gains on convertible bonds and preferred shares rather than operating profitability
3
The company established a wholly owned US subsidiary in Texas in October 2025 and secured CAP, CLIA, and CDPH accreditations to lay the groundwork for direct US market entry
4
The company launched its genomic newborn screening service '3B-NEO' overseas and was selected to conduct the Philippine government's newborn screening program
5
Operating cash flow remains negative, and the company raised KRW 30bn this year through CB and CPS issuance to fund growth investments

Business structure

3Billion is an AI-based rare disease genomic diagnostics company that spun off from Macrogen in 2016 and listed on KOSDAQ in November 2024.

Its core business is 'Full Service' rare disease diagnosis based on Whole Exome Sequencing (WES) and Whole Genome Sequencing (WGS), using its proprietary AI variant interpretation model '3ASC 2.0' to diagnose over 8,000 rare diseases in a single test.

Beyond diagnostics, the company diversifies revenue through specific-disease testing, data-based diagnostics, and its SaaS subscription platform 'GEBRA', and it launched the family-based genetic test 'Family Insight' in February, which has begun generating overseas revenue.

In June, the company launched its genomic newborn screening service '3B-NEO' overseas and was selected as an implementing agency for the Philippine government's newborn screening program.

Leveraging patient genomic and clinical data accumulated through its diagnostic business, the company has also entered AI-driven drug discovery, operating a target discovery platform called 'SAGE' and a candidate design platform called 'MIN-T' aimed at preclinical-stage licensing deals.

As of the first half of 2026, overseas revenue accounted for about 69% of the total, with sales generated in more than 75 countries. In the US market, the company competes with market leader GeneDx and is preparing entry with lower per-test pricing.

Earnings trend

Quarterly revenue · Operating profit

₩2.6B-₩1.6B25Q2₩3.2B-₩1.3B25Q325Q4₩3.4B-₩1.7B26Q1₩3.8B-₩1.7B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩2.7B-₩8.4B2023₩5.8B-₩7.4B2024₩11.7B-₩5.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩2.6B	-₩1.6B	−61.5%
2025Q3	₩3.2B	-₩1.3B	−39.3%
2025Q4	—	—	—
2026Q1	₩3.4B	-₩1.7B	−49.4%
2026Q2	₩3.8B	-₩1.7B	−43.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2023	₩2.7B	-₩8.4B	-₩5.1B	−305.9%	−43.2%	93.9%
2024	₩5.8B	-₩7.4B	-₩6.6B	−128.5%	−23.2%	6.9%
2025	₩11.7B	-₩5.9B	-₩5.4B	−50.3%	−22.9%	25.7%

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

3Billion's consolidated revenue rose from KRW 2.73bn in 2023 to KRW 5.77bn in 2024 and KRW 11.71bn in 2025, more than doubling for three consecutive years.

Over the same period, the operating loss narrowed from KRW 8.35bn in 2023 to KRW 7.42bn in 2024 and KRW 5.89bn in 2025, with the operating margin steadily improving from -305.9% to -128.5% to -50.3%.

Net loss attributable to owners widened from KRW 5.09bn in 2023 to KRW 6.57bn in 2024 before narrowing to KRW 5.41bn in 2025.

By quarter, revenue of KRW 2.59bn with an operating loss of KRW 1.59bn in Q2 2025 was followed by revenue of KRW 3.23bn and an operating loss of KRW 1.27bn in Q3 2025, continuing a trend of rising revenue alongside shrinking losses.

In Q1 2026, revenue reached KRW 3.36bn with an operating loss of KRW 1.66bn, and in Q2 2026 revenue grew to KRW 3.79bn while the operating loss widened slightly to KRW 1.67bn.

Notably, net income attributable to owners turned positive at KRW 6.72bn in Q2 2026, driven by non-cash fair-value gains on convertible bonds and preferred shares issued in May, which the company stated was not driven by an operating profit turnaround.

Consolidated operating cash flow remained negative every year — KRW -4.87bn in 2023, KRW -4.10bn in 2024, and KRW -3.56bn in 2025 — though the shortfall gradually narrowed.

The consolidated debt ratio fell sharply from 93.9% in 2023 to 6.9% in 2024 before rising again to 25.7% in 2025, reflecting the liability impact of the CB and CPS issuances.

Industry analysis

The global rare disease diagnostics market is rapidly shifting from panel-based testing toward WES- and WGS-based testing, with market researcher Research and Markets estimating that the global rare disease diagnostics market would grow from $35.23bn in 2024 to $38.22bn in 2025.

According to the company, the US is estimated to account for 48% of the global rare disease diagnostics market, and industry observers note that US WES/WGS testing prices are 5-6 times higher than in Korea, implying significant revenue leverage.

GeneDx is regarded as the leading player in the US market with over two decades of operating history and sales infrastructure, and Shinhan Investment & Securities has analyzed that the company's pricing at $990 versus GeneDx's average selling price of $2,500 could offer a price advantage.

Adjacent markets such as newborn screening and rapid rare disease diagnosis are also seen as expanding quickly, with estimated market sizes of KRW 130 trillion for newborn screening and KRW 65 trillion for rapid rare disease diagnosis.

These market-size and competitiveness figures originate from brokerage or company IR estimates and should be interpreted with appropriate caution.

The number of companies globally specializing in genomics-based rare disease diagnosis is understood to be limited, and the company positions its accumulated multi-ethnic patient data and AI variant interpretation technology as its core differentiator.

Outlook

The company established its wholly owned US subsidiary '3Billion US' in Texas in October 2025 with an investment of $3 million, and secured key US genetic testing accreditations including CAP, CLIA, and CDPH to build a local operating base.

Brokerages have suggested that CLIA lab setup would be completed in the first half of 2026 with US revenue ramping in the second half, though the actual timing and scale of revenue recognition require confirmation through future quarterly disclosures.

The newborn screening service '3B-NEO' was selected for the Philippine government's screening program, validating its clinical utility on local newborns, and the company stated that related revenue is expected to be recognized progressively starting in the second half.

The company raised a total of KRW 30bn this year through KRW 12.5bn in convertible bonds and KRW 17.5bn in convertible preferred shares, stating plans to deploy the funds toward global diagnostics expansion, new testing service development, and AI drug discovery R&D.

In drug discovery, the company is using its target discovery platform 'SAGE' and candidate design platform 'MIN-T' to identify preclinical-stage candidates, with business development underway aimed at joint development and licensing deals with global pharmaceutical companies.

CEO Kum Chang-won has stated that this year's goal is to generate business achievements such as licensing deals as quickly as possible.

However, since the timing and scale of revenue contribution from these new businesses remain unconfirmed, concrete progress should be tracked through upcoming quarterly results and disclosures.

Valuation

PER

—

PBR

—

ROE

-22.9%

EPS

—

BPS

—

Dividend per share

₩0

3Billion continues to post net losses, placing it in a range where earnings-based valuation metrics are difficult to apply, and its shares trade at a notable premium to net asset value. The company does not pay dividends, so its dividend yield trails the sector average.

Over a multi-year view, the loss structure has moved gradually from deficit toward income recovery as revenue growth has been accompanied by a steadily improving operating loss ratio, but it should be noted that the net income turnaround in Q2 2026 stemmed from a temporary fair-value gain on financial instruments rather than an improvement in core profitability.

Since listing, the share price has tended to show short-term strength around news of US market entry and profitability turnaround expectations, and this event-driven pattern may continue going forward.

Investors may wish to track revenue growth, the pace of operating loss reduction, and changes in core cash flow excluding non-cash valuation gains or losses.

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

Overseas Revenue Expansion and New Business Diversification

In the first half of 2026, overseas revenue accounted for about 69% of total revenue, up 59% year-on-year, with the family genetic testing product 'Family Insight' and the newborn screening test '3B-NEO' being added as new revenue sources.

Being selected as the operating institution for the Philippine government's newborn screening program is an example of expanding the scope of diagnostic services from rare disease patients to prevention-focused testing.

Diversifying revenue sources across various countries and test types can reduce dependence on any specific region or service.

Foundation Laid for Direct US Market Entry

3billion has established a wholly-owned subsidiary in Texas and secured all CAP, CLIA, and CDPH certifications, meeting the regulatory requirements for operating in the U.S.

The U.S. is considered a market with high genomic diagnostic unit prices and active insurance reimbursement, and analysts suggest that revenue leverage could be significant if entry succeeds. Price competitiveness backed by low test unit costs is also being presented as a market entry strategy as a late mover.

Gradual Improvement in Profit-and-Loss Structure

The operating loss ratio sharply improved from -305.9% in 2023 to -50.3% in 2025, and the operating loss ratio relative to revenue in the first half of 2026 also improved compared to the same period last year.

Over several quarters, the trend of narrowing losses has continued as revenue growth has outpaced cost increases. If this trend continues, market interest in the potential timing of quarterly breakeven is expected to persist.

Bear factors

Ongoing Cash Burn

Operating cash flow has been negative every year from 2023 to 2025, and although the scale is decreasing, it remains in a net outflow state. The company has been covering this through external funding via CB and CPS issuances, which could lead to future equity dilution or financial burden.

If additional initial investment costs arise from U.S. market entry, the pace of cash depletion could accelerate again.

Non-Operating Nature of Q2 Net Income

As the company itself has stated, the net profit surplus in Q2 2026 stems from non-cash valuation gains due to changes in the fair value of convertible bonds and convertible preferred stock, and is not an indicator of improved profitability in the core business.

In the same quarter, the operating loss actually widened slightly compared to the previous quarter. The possibility that net profit/loss could swing significantly again in the future if the fair value of these financial instruments moves in the opposite direction cannot be ruled out.

Competitive and Execution Risk in US Entry

The U.S. rare disease diagnostics market is occupied by established players such as GeneDx, which has over 20 years of business experience and sales networks, meaning it could take time for a new entrant to gain market share.

Increased fixed costs from establishing local labs, hiring personnel, and maintaining certifications are also inevitable. Uncertainty regarding insurance reimbursement eligibility and the negotiation process is also a variable that could affect the timing of revenue realization.

Risk factors

Financial and Capital-Raising Risk

This year, the company raised a total of KRW 30 billion by issuing KRW 12.5 billion in CB and KRW 17.5 billion in CPS, which raised the consolidated debt ratio from 6.9% in 2024 to 25.7% in 2025.

If the convertible bonds and convertible preferred stock are converted into shares in the future, existing shareholders' equity could be diluted. There is a possibility that additional external funding may be needed for future growth investments.

Risk of Delayed Monetization of New Businesses

New revenue sources such as U.S. revenue, the Philippine newborn screening program, and drug technology licensing have not yet had specific revenue figures confirmed through disclosure. In the case of government-led projects, the scope or schedule may be adjusted according to changes in budget or policy.

Since the licensing-out of the new drug pipeline depends on the decision-making of the negotiating counterparty, the timing is difficult to predict.

Risk of Intensifying Competition and Technology Validation

The global rare disease diagnostics market includes competitors such as GeneDx, and competition over technological advantages such as AI accuracy and processing speed may continue. Third-party verification results regarding diagnostic accuracy or clinical utility could affect market trust going forward.

The drug development division is still in an early stage, and whether it will progress beyond the preclinical stage remains uncertain.

What to watch next

Mid-November 2026
Q3 2026 earnings disclosure is expected — a key point to check whether US revenue begins contributing and whether the operating loss ratio continues to improve.
During the second half of 2026
Investors should check whether and how much revenue from the Philippine newborn screening program '3B-NEO' is recognized.
During the second half of 2026
The actual timing and initial scale of revenue from the Texas subsidiary, along with related fixed-cost impact, should be verified through quarterly disclosures.
Upon future disclosure
Ongoing monitoring is needed on preclinical pipeline progress and any disclosures related to licensing-out deals.
In upcoming quarters
The specific use of the KRW 30bn raised through CB and CPS issuance, and its resulting impact on cash flow, should be tracked.

Overall view

3Billion has demonstrated both top-line growth and improving profit-and-loss structure, with revenue more than doubling each year from 2023 to 2025 and the operating loss ratio improving from -305.9% to -50.3%.

The net income turnaround in Q2 2026 stemmed from a non-cash fair-value gain on convertible bonds and preferred shares, and the company itself has stated this is unrelated to core profitability, warranting careful interpretation.

The establishment of the Texas subsidiary with key accreditations and selection for the Philippine newborn screening program are cited as mid-to-long-term growth drivers, but the actual timing and scale of revenue contribution have not yet been confirmed through disclosures.

Operating cash flow has remained negative every year, reflecting continued reliance on external financing. The debt ratio rose again to 25.7% in 2025 due to the impact of CB and CPS issuances.

Key points to watch going forward include the actual timing of US revenue recognition, the revenue contribution of new businesses, and improvement in core cash flow excluding non-cash items.

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.