[Click eStock] "Lunit Needs Time for Profitability to Become Visible"

On May 14, Kiwoom Securities analyzed Lunit's first-quarter performance, stating, "While it is clear that the company's revenue scale is increasing, it will take time for profitability to become visible."

Based on consolidated financial statements, Lunit's first-quarter revenue was KRW 19.2 billion, with an operating loss of KRW 20.7 billion. Compared to the same period last year, revenue surged by 273.6%. The operating loss continued. Revenue exceeded Kiwoom Securities' estimate by 19.3%, but the operating loss was KRW 5.3 billion larger than projected.

Analyst Shin Minsoo explained, "The company incurred KRW 9.8 billion in research and development expenses by purchasing data from approximately 2 million mammography DBT patients in the United States," adding, "This is the largest quarterly R&D expense and one of the factors behind the expanded operating loss." Excluding non-cash expenses such as depreciation and stock-based compensation, the EBITDA for each quarter was KRW -16.8 billion in Q4 2023, KRW -13.0 billion in Q4 2024, and KRW -14.9 billion in Q1 2025.

Kiwoom Securities forecasts that Lunit's annual revenue will reach KRW 86.6 billion this year, up 59.9% from last year. The operating loss is expected to decrease to KRW 56.4 billion, compared to KRW 67.7 billion last year.

As of the first quarter, consolidated cash and cash equivalents stood at KRW 52.4 billion. Shin Minsoo stated, "If the current financial status is maintained, the company can operate until the second quarter of 2026," and added, "Since it was emphasized at the regular shareholders' meeting in March that there would be no paid-in capital increase for operating funds, it is possible that the company will seek to strengthen its financial position through other means such as borrowing."