MakinaRocks

MakinaRocks was co-founded in 2017 by CEO Yoon Seong-ho (MIT physics, formerly Samsung Electronics and SK Telecom) and is an industry-specialized AI company targeting demanding AI deployment environments across manufacturing, defense, energy, semiconductor, and battery sectors.

Its flagship product 'Runway' is an enterprise AI operating system covering the full AI lifecycle—from data collection, storage, and processing to model development, deployment, and management—with integrated MLOps, LLMOps, RAG, on-premise/on-device AI, and multi-agent AI capabilities.

The platform's defining competitive edge is its ability to deliver cloud-comparable AI operations within air-gapped closed networks and factory server environments, addressing structural constraints that cloud-centric competitors cannot overcome in settings where data exfiltration is prohibited and security requirements are extreme.

According to recent reports, approximately 68% of 2025 revenue originated from the top-5 manufacturing conglomerates and the defense sector, with clients including Samsung Electronics, Samsung Display, Hyundai Heavy Industries, SK On, Hyundai Mobis, the Agency for Defense Development, Joint Chiefs of Staff, and the ROK Navy First Fleet.

The revenue mix is currently divided between annual and monthly license fees and project-based solution sales; the company's strategic priority is shifting toward a higher proportion of recurring Runway license revenue to improve earnings predictability and margin profiles over time.

Beyond Runway, the company supplies 'DrawX', an AI application automating drawing-based cost estimation workflows, and has deployed over 6,000 industry-specific AI models to date.

Domestically, comparable players include Nota, Superb AI, and OnePredict—all listing or preparing to list—yet MakinaRocks maintains a meaningful head start through its closed-network specialization and blue-chip reference roster.

A strategic investor roster spanning SK Telecom, Hyundai Motor, Naver, LG Technology Ventures, Hanwha, GS, and POSCO collectively functions as a structural commercial network asset, facilitating customer introductions and ecosystem expansion across key domestic industries.

Per DART disclosures, Q1 2026 revenue reached KRW 3.0 billion, a 167.6% YoY increase, while the operating loss narrowed to -KRW 2.4 billion (+24.6% improvement YoY) and the net loss similarly improved to -KRW 2.4 billion (+30.0% improvement YoY), signaling that loss leverage is beginning to moderate as the revenue base expands.

According to recent reports, full-year 2025 revenue was approximately KRW 11.5 billion with an operating loss of approximately KRW 8.0 billion, continuing a three-year top-line growth trajectory from KRW 5.2B (2023) to KRW 8.3B (2024) to KRW 11.5B (2025).

On the order front, per recent reports, the company recorded KRW 20.5B in new orders in 2025, followed by KRW 7.5B in Q1 2026 alone—approximately 2.8x the year-ago figure of ~KRW 2.7B—with the secured annualized revenue backlog standing at KRW 13.1B as of March 31, 2026.

However, meeting the full-year KRW 22.5B target requires additional H2 order wins and contract execution beyond the current backlog.

On the stock price front, MakinaRocks debuted on KOSDAQ on May 20, 2026, reaching KRW 60,000—the 400% 'fourfold' ceiling—on its first trading day, with public offering subscription deposits reaching approximately KRW 13.9 trillion, the highest of any 2026 IPO.

The physical AI sector premium compressed rapidly thereafter: shares declined to approximately KRW 41,050 by May 27 and stand at KRW 26,450 as of June 5, representing a ~56% drawdown from the IPO-day high.

Nonetheless, the current price still carries a ~76% premium over the IPO offering price of KRW 15,000, indicating that meaningful forward growth expectations remain embedded in the market valuation.

The medium-term core scenario centers on scaling recurring Runway license revenue and reaching break-even in 2027.

Based on company-provided guidance, internal targets stand at KRW 22.5B for 2026 and KRW 37.3B for 2027—thresholds at which management believes BEP is achievable—and Q1 order acceleration has delivered an early positive signal toward this path.

Of the approximately KRW 36.4B raised through the IPO, roughly 77% has been earmarked for Runway platform enhancement, proprietary foundation model development, and agentic AI R&D, while the remaining ~23% funds overseas market expansion centered on Japan.

In Japan, the local subsidiary established in April 2025 has already secured four customers in automotive and industrial machinery within less than a year; in Europe, a partnership with KUKA subsidiary Device Insight provides an initial commercial foothold.

The structural acceleration of AI adoption in manufacturing and defense—sectors where closed-network, on-premise deployments are often non-negotiable—supports the medium-to-long-term demand thesis for Runway.

The approaching pipeline of physical AI peer IPOs (Superb AI, InEase, OnePredict) could sustain sector-level interest but may also dilute investor attention and intensify competitive dynamics over time.

The pace of H2 2026 order wins and the rate at which recurring Runway license revenue displaces project-based solutions will be the key determinants of 2027 BEP path visibility.