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
Inswave has extended double-digit revenue growth into the first half of 2026 as large financial-sector orders convert into sales, yet its full-year operating result still sits in loss territory.
2025 revenue rose to KRW 38.96 billion from KRW 30.41 billion, but the company posted an operating loss of KRW 4.86 billion and a net loss of KRW 3.48 billion, its second consecutive annual loss.
The operating loss widened sharply to KRW 2.81 billion in Q1 2026 before narrowing to KRW 0.13 billion in Q2, when net income attributable to owners turned positive at KRW 0.13 billion.
A string of large financial-sector wins from Meritz Fire & Marine, NH NongHyup Bank, Woori Card and LG CNS has built a disclosed order backlog of roughly KRW 44.1 billion.
New ventures such as the digital-asset 'product rights certification platform' (NaeGift) pilot and expanded partnerships at its Japan subsidiary are underway, though their revenue contribution is not yet confirmed.
The stock trades below book value per share and the company pays no dividend, making the pace of the earnings turnaround the key variable to watch.
Founded in 2002 and listed on KOSDAQ in 2023, Inswave is an enterprise software specialist and the only Korean UI/UX solutions company that is a member of the World Wide Web Consortium (W3C).
Its core products include the web-standard UI/UX development platform WebSquare5, its generative-AI-enhanced AI agent platform WebSquare AI, the integrated financial terminal solution WebTop, the mobile universal app platform W-Matrix, and DXSquare, a public-sector electronic document solution that has obtained Korea's cloud security certification (CSAP).
Its main clients are banks, insurers, card companies and public institutions, and it has recently won a string of large projects including a UI conversion for Meritz Fire & Marine's business systems, a next-generation terminal conversion for NH NongHyup Bank, an integrated terminal rebuild for Woori Card, and a core-banking modernization web terminal project with LG CNS.
It is also pursuing a partnership with Koscom to modernize UI/UX for the financial investment industry and working with Vitoz on a digital-asset financial platform targeting security token offerings and stablecoins.
As a new growth engine, the company is piloting a 'product rights certification platform' called NaeGift that converts small merchants' goods and services into digital assets, running field trials with merchant associations in Incheon.
Overseas, its Japan subsidiary, Inswave Japan, is said to be gaining traction through a partnership with Jitera and a site-safety digital transformation project win with Ebiden Group's TAK.
The company has also unveiled an 'AI governance' strategy that quantitatively manages company-wide AI usage, positioning itself on both development productivity and output quality control.
With next-generation system transitions converging across finance and the public sector, its business mix continues to blend systems-integration-style project revenue with proprietary platform licensing.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩10.4B | -₩1.1B | −10.3% |
| 2025Q3 | ₩11.5B | -₩900M | −7.7% |
| 2025Q4 | ₩10B | ₩500M | 4.9% |
| 2026Q1 | ₩11.3B | -₩2.8B | −24.9% |
| 2026Q2 | ₩15.3B | -₩100M | −0.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩43.6B | ₩7B | ₩5.4B | 16.1% | 35.5% | 112.2% |
| 2023 | ₩32.6B | ₩5.2B | ₩4.7B | 15.9% | 10.3% | 24.0% |
| 2024 | ₩30.4B | -₩3.6B | -₩2B | −11.8% | −4.5% | 26.0% |
| 2025 | ₩39B | -₩4.9B | -₩3.5B | −12.5% | −8.6% | 30.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Annual results have swung considerably.
In 2022, revenue reached KRW 43.63 billion with an operating profit of KRW 7.04 billion (a 16.1% operating margin), but in 2023 revenue fell to KRW 32.60 billion while the operating margin held at 15.9%; by 2024, revenue slipped further to KRW 30.41 billion and the company swung to an operating loss of KRW 3.59 billion (a -11.8% margin).
In 2025, revenue recovered to KRW 38.96 billion, yet the operating loss actually widened to KRW 4.86 billion (a -12.5% margin) and the net loss reached KRW 3.48 billion, marking a second straight year of losses.
On a quarterly basis, Q3 2025 revenue of KRW 11.46 billion came with an operating loss of KRW 0.88 billion and a net loss of KRW 1.01 billion, before Q4 2025 turned profitable with revenue of KRW 10.02 billion, operating profit of KRW 0.49 billion and net income of KRW 0.97 billion.
Volatility resurfaced in Q1 2026, when revenue held at KRW 11.26 billion but the operating loss widened sharply to KRW 2.81 billion and the net loss to KRW 2.24 billion.
In Q2 2026, revenue jumped to KRW 15.33 billion, the operating loss narrowed to KRW 0.13 billion, and net income attributable to owners turned positive at KRW 0.13 billion.
Over the trailing four quarters (Q3 2025 through Q2 2026), the cumulative net loss attributable to owners stands at KRW 2.15 billion, indicating that despite quarterly profitability, the company has not yet cleared losses on a rolling basis.
This pattern reflects a structure in which large-project revenue recognition tends to cluster in the second half, causing earnings to swing sharply from quarter to quarter.
The enterprise UI/UX platform market is being reshaped as next-generation system transitions in finance and the public sector converge with demand for AI development tools.
Smart-branch and AI-assistant rollouts among banks are expanding demand for financial terminal solutions, while corporate interest in integrating generative AI and AI agent technology into development tools is reportedly rising.
Against this backdrop, the market appears to be consolidating around a smaller number of vendors with proven references and financial stability, and Inswave is seen as strengthening its position on the back of its financial-sector track record and sizeable order backlog.
In the public sector, DXSquare's cloud security certification (CSAP) has served as a foothold for market entry, and because public and financial IT budgets tend to be executed toward year-end, revenue seasonality skewed toward the second half remains structurally embedded in the business.
Competitively, Korea's UI/UX and systems-integration market is a mix of small and mid-sized software firms alongside large IT service companies, and Inswave differentiates itself through web-standard technical expertise and its W3C membership status.
That said, because the market itself depends heavily on individual project wins, revenue visibility is inherently low and volatility tied to economic and budget cycles is a shared characteristic across the industry.
The company has described its first-half 2026 results as proof of the turnaround it flagged at the start of the year, stating that it has entered a structural growth phase in which large order wins convert into revenue.
Indeed, backlog from major projects—including a second-phase UI conversion for Meritz Fire & Marine (about KRW 11 billion), a next-generation terminal conversion for NH NongHyup Bank's NEO core banking system (about KRW 21 billion), and a core-banking modernization web terminal project with LG CNS (about KRW 9.9 billion)—is set to be recognized sequentially in revenue from the second half.
Growth is framed around two pillars, AI and global expansion: domestically, the company is targeting the financial sector's AI transformation (AX) market with WebSquare AI and WebTop, while overseas, its Japan subsidiary is said to be gaining traction through a partnership with Jitera and a project win with Ebiden Group's TAK.
Its digital-asset new business, the NaeGift platform, signed a one-year field-trial agreement in July 2026 with two merchant associations in Incheon to validate the concept ahead of any commercialization, while a partnership with Vitoz is exploring expansion into security token offerings and stablecoins. Management has called first-half revenue growth "a preview of accelerating second-half results,
Having swung from a profitable 2023 to losses in 2024 and 2025, and now oscillating between quarterly profit and loss through 2026, earnings stability is the first variable to weigh in any valuation discussion of Inswave.
The stock trades in a range below its net asset value, reflecting both the effect of accumulated losses in recent years on shareholders' equity and the market pricing in earnings uncertainty.
With no dividend being paid, the investment case leans more on an earnings-improvement and growth narrative than on shareholder returns.
Since its listing, the share price has a history of swinging sharply around earnings releases and order announcements, marking it as a name where market reaction to individual events carries considerable weight in its valuation.
As a small-cap stock, limited trading volume and liquidity are additional factors to weigh when interpreting its valuation.
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
A string of major contracts with Meritz Fire & Marine, NH NongHyup Bank, Woori Card and LG CNS has built a disclosed order backlog of about KRW 44.1 billion.
If this backlog is recognized sequentially in revenue from the second half, the growth and margin improvement seen in Q2 2026 could continue, though the actual pace and scale of recognition will depend on project progress.
Both operating profit and net income turned positive simultaneously on two occasions—Q4 2025 and Q2 2026. Cost-structure improvements alongside revenue growth have been cited as the backdrop for these turnarounds, and whether such profitability can be repeated will be a gauge of future earnings stability.
The company is pursuing development productivity gains through WebSquare AI and its AI governance strategy, while simultaneously pursuing new ventures such as the digital-asset NaeGift platform and collaborations tied to security token offerings and stablecoins.
Expanded partnerships at its Japan subsidiary also open the door to overseas revenue diversification, though these new businesses remain at an early pilot stage with uncertain timing for revenue contribution.
The company posted consecutive operating and net losses in 2024 and 2025, and even as revenue held steady in Q1 2026, the operating loss widened to KRW 2.81 billion.
A cumulative net loss attributable to owners of KRW 2.15 billion remains over the trailing four quarters, meaning it is not yet confirmed whether quarterly profitability will translate into a full-year earnings improvement.
Revenue is heavily dependent on individual project wins and their recognition timing, and the seasonality of public- and financial-sector IT budget execution, concentrated toward year-end, reduces earnings visibility.
Should reliance on specific large clients increase, any contract delay or reduction could carry an outsized impact on results.
The digital-asset platform NaeGift is still at the pre-commercialization field-trial stage, and businesses related to security token offerings and stablecoins remain at an early collaboration stage.
These new ventures will require time before contributing to revenue and profit, and uncertainty tied to regulatory changes also persists.
With revenue concentrated in financial and public-sector projects, any reduction in IT investment or delay in budget execution in these industries could directly affect results, and any changes in contract terms with specific large clients also warrant ongoing monitoring.
As recent quarterly results have alternated between losses and profits, earnings can swing sharply depending on revenue recognition timing and cost structure. Further confirmation of results is needed before a stable annual profit can be established.
New businesses tied to digital assets, security token offerings and stablecoins remain at an early pilot or collaboration stage, and the pace and shape of their development could shift depending on how Korea's digital-asset legal and regulatory framework evolves. The effect of new-business investment on the profitability of the core business also warrants attention.
The Q3 2026 quarterly report is expected around this time; it will be important to check whether large-project revenue recognition and the profit improvement seen in Q2 continue.
The results of the one-year NaeGift field trials with two Incheon merchant associations, and whether the platform advances toward commercialization, should be tracked.
The pace at which the disclosed KRW 44.1 billion order backlog converts into revenue, along with any new large-order disclosures, should be checked.
Follow-up contract news related to the Japan subsidiary's Jitera partnership and the Ebiden Group TAK project, and whether overseas revenue becomes visible, should be monitored.
Inswave swung from profitability in 2022 to losses in 2024-2025, and is now attempting a profit turnaround through 2026 by alternating between quarterly profits and losses.
A string of large financial-sector project wins that has driven revenue growth and built a KRW 44.1 billion order backlog stands out as a positive signal, but the trailing four-quarter net result remains a loss, and quarter-to-quarter earnings volatility remains substantial.
New ventures such as its digital-asset platform and Japan market expansion are still at an early pilot or partnership stage, with the timing of any revenue contribution still uncertain.
The stock trades below its net asset value and pays no dividend, suggesting the market is pricing in some uncertainty about the durability of the earnings improvement.
Going forward, the Q3 earnings release, the pace at which the backlog converts into actual revenue, and progress on new ventures will be key variables in gauging the company's direction. This report is for informational purposes only and does not constitute a buy or sell recommendation.
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.