1. Lunit H1 2025 Earnings Analysis: Key Highlights

Lunit recorded revenue of ₩17.8 billion, operating loss of ₩21.1 billion, and net loss of ₩34.9 billion in H1 2025. These figures fell short of market expectations by 11%, 38%, and 97%, respectively. The slowdown in Q2 performance was particularly noticeable.

2. Reasons for Underperformance: Cancer Screening, Oncology, and R&D Investment

The Cancer Screening division experienced a decline in revenue due to the results reflecting before the expansion of partnerships and the acquisition effect. The Oncology division saw a temporary decline in revenue due to a strategic transition. High R&D investment (51.31% of revenue) is positive for securing technological competitiveness but puts pressure on short-term profitability. Debt-to-equity ratio increased (191.13%) due to financing related to the Volpara Health acquisition.

3. Lunit’s Future: Positive Factors and Considerations

  • Positive Factors:
    • High growth potential of the medical AI market
    • Expected strengthening of global competitiveness through the Volpara Health acquisition
    • Weakening of the Korean Won against the US dollar
  • Considerations:
    • Short-term underperformance and profitability constraints
    • High debt-to-equity ratio
    • Financial burden related to convertible bonds

4. Action Plan for Investors: Short-term Caution, Maintain Medium- to Long-term Positive Outlook

A cautious approach is recommended in the short term. Maintain a positive outlook for the medium to long term, while monitoring the synergy of the Volpara Health acquisition, new pipeline development, and profitability improvement strategies.