Inswave Posts 52% Revenue Growth in First Half, Says It Is on “Structural Growth Trajectory”

Inswave said on the 20th that the turnaround it had forecast at the start of the year was confirmed by its first-half results. The semiannual report was disclosed on the 13th.

On a consolidated basis, revenue for the first half of 2026 came to about KRW 26.6 billion. Compared with about KRW 17.5 billion in revenue in the same period last year, first-half revenue increased 52.0% year over year.

By quarter, revenue growth came in at 58.3% in the first quarter and 47.7% in the second quarter, marking two straight quarters of more than 40% growth. Net income for the second quarter turned profitable.

Inswave attributed the improvement in results to the start of revenue recognition from a series of financial-sector orders that had continued since the second half of last year. As the backdrop to growth, the company pointed to its market share and technology in financial-sector project bids. The company said the latest results reflect entry into a structural growth trajectory rather than a one-time rebound, citing the fact that large orders are being translated into revenue.

Inswave supplied solutions for Woori Card's integrated terminal system rebuild, as well as for NH NongHyup Bank's NEO account system next-generation terminal build and the NongHyup Mutual Finance next-generation information system build. The company said it had accumulated an order backlog through a succession of large financial projects.

In January, Inswave forecast a turnaround and said it could surpass the previous year's revenue with just 2 contracts. Since then, the company has won a series of large projects. Inswave said this string of orders signals the start of a sustainable upturn in performance, not a one-off event.

As of the end of June, the total amount of major contract awards stood at about KRW 57 billion. Unrecognized order backlog amounted to about KRW 44.1 billion, exceeding last year's full-year revenue total of about KRW 38.8 billion. As a result, the semiannual report showed contract volume and unrecognized backlog surpassing the prior year's annual revenue.

In detail, the company secured about KRW 11 billion for the second phase of Meritz Fire & Marine Insurance's business system UI conversion project, about KRW 21 billion for NH NongHyup Bank's NEO account system next-generation terminal conversion project, and about KRW 9.9 billion for a new project in June to convert a core banking modernization web terminal. The order backlog will be reflected in revenue sequentially from the second half as the projects progress.

On the earnings side, Inswave said revenue expansion and improvements in its cost structure based on system management progressed together, making the pace of profit improvement steeper than revenue growth. As a result, second-quarter consolidated operating loss narrowed to about KRW 130 million, down 88% from about KRW 1.07 billion in the same period last year, bringing the company close to break-even. Second-quarter net income was about KRW 130 million, turning profitable on a quarterly basis.

The improvement trend continued on a cumulative first-half basis as well. Cumulative first-half operating loss fell 34.2%, and cumulative first-half net loss narrowed 38.5%. The company said the reduction in losses was driven by simultaneous revenue growth and cost-structure improvements based on system management, and that it was close to a full-year earnings turnaround.

The company pointed to AI and overseas expansion as its growth pillars. Inswave has AI Agent-based UI/UX development platform WebSquare AI and financial terminal platform WebTop, and is targeting the financial sector AX market with WebSquare AI and WebTop. DXSquare also obtained CSAP, the nationally certified cloud security certification, securing a foundation for entry into the public sector market.

In its global business, the company has moved to expand in the Japanese market. In Japan, it formed a strategic partnership with G-Tera and won an on-site safety DX project for Ibiden Group's TAK. Based on this, Inswave Japan's business has entered a growth track in Japan.

The enterprise UI/UX platform market is being reshaped as financial and public-sector next-generation system transitions converge with demand for AI development tools. The market is showing a tendency to consolidate around a small number of players with proven references and financial stability. In this environment, Inswave is strengthening its edge.

Inswave's competitive advantage rests on its financial-sector references and an order backlog of KRW 44.1 billion as disclosed. A company official said that, given the characteristics of financial and public-sector clients, investment tends to concentrate in the second half of the year with the goal of completion within the year, especially in the fourth quarter. The official added that the KRW 44.1 billion order backlog disclosed will be recognized as revenue sequentially, and that the degree of annual performance improvement is expected to widen compared with the first half.

CEO Auh Se-ryong of Inswave said first-half revenue grew 52%, meaning the company's technology has been validated in the market. He also signaled an acceleration in results in the second half, saying the company aims not merely to boost numbers but to clearly enhance shareholder value through substantive growth.

Inswave is developing its digital asset business as a new growth area, and on the 3rd it signed an MOU with 2 merchants' associations to broaden that effort and launched a proof-of-concept for a 'voucher rights certification platform' as part of expanding its digital asset business, which it is nurturing as a next-generation new business.

Source: IT DAILY · Kwon Young-seok
Original: https://www.itdaily.kr/news/articleView.html?idxno=241101

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