Lunit Inc. (328130)

[Business Overview] Lunit is a medical AI company that develops artificial intelligence (AI)-based cancer diagnosis and treatment solutions. Its main business areas are divided into 'Lunit INSIGHT' for cancer screening and 'Lunit SCOPE,' an AI biomarker platform for cancer treatment. Lunit INSIGHT is used for early diagnosis of lung and breast cancer by analyzing medical images such as chest X-rays and mammograms, while Lunit SCOPE predicts immune-oncology treatment responses through tissue slide analysis and supports new drug development. Based on 2024 revenue, the cancer diagnosis (Lunit INSIGHT and Volpara) segment accounted for approximately KRW 50.2 billion, and the oncology (Lunit SCOPE) segment accounted for approximately KRW 4.0 billion. In 2025, Lunit SCOPE revenue surpassed KRW 10.0 billion, showing significant growth. The company collaborates with global medical device and pharmaceutical companies such as GE Healthcare, Philips, Fujifilm, AstraZeneca, and Daiichi Sankyo, supplying solutions to over 10,000 medical institutions worldwide. Notably, through the acquisition of Volpara Health Technologies in 2024, it strengthened its position in the North American breast cancer screening market, and with overseas revenue accounting for over 90% of total revenue, it is a global company. [Core Competitiveness] Lunit boasts a high diagnostic accuracy of 95-97% based on its world-class deep learning AI technology, and its technological prowess and clinical value have been recognized through FDA and CE certifications. It possesses a comprehensive AI solution portfolio covering the entire process from cancer diagnosis to treatment, and it is strengthening market expansion and technological cooperation through strategic partnerships with global medical device and pharmaceutical companies. In particular, through the Volpara acquisition, it has secured a stable recurring revenue structure based on SaaS, and the high renewal rate (95%) of Lunit INSIGHT products demonstrates a robust customer base. [Performance Analysis] Lunit's revenue grew by approximately 115.9% from KRW 25.1 billion in 2023 to KRW 54.2 billion in 2024, and in 2025, it reached KRW 83.1 billion, an increase of approximately 53.3% year-over-year, achieving its highest-ever performance. First-quarter 2026 revenue recorded KRW 24.0 billion, an increase of approximately 25% compared to first-quarter 2025 revenue of KRW 19.2 billion. Operating income remained in deficit at KRW -83.1 billion in 2025, but the operating loss ratio to revenue improved by 25 percentage points, from 1.25 times the previous year to 1.0 times. First-quarter 2026 operating loss was KRW -13.6 billion, a decrease of approximately 35% year-over-year, significantly reducing the scale of losses and showing a trend of improving profitability. [Financial Soundness] The debt-to-equity ratio significantly increased from 13.96% in 2023 to 166.02% in 2024 and 169.16% in 2025, indicating a need for financial health management. ROE (Return on Equity) remained negative at -34.48% in 2025 but showed improvement compared to -50.82% in 2024. This is attributed to increased investment costs due to the Volpara acquisition and business expansion. [Outlook] Lunit is expected to continue its growth by accelerating its expansion in the North American breast cancer screening market through the Volpara acquisition and by strengthening companion diagnostics and new drug development collaborations via its AI biomarker platform 'Lunit SCOPE'. By transforming into a platform company, it aims to provide integrated solutions covering the entire spectrum from cancer diagnosis to treatment, focusing on profitability improvement with a target of achieving EBITDA-based break-even in 2026. Furthermore, it plans to solidify its leading position in the medical AI market through the expansion of high-margin SaaS-based product lines and the development of autonomous AI.