[Edaily Reporter NA EUN-KYUNG ] #Graphy Inc., a developer of 3D shape-memory orthodontic devices, announced on the 28th that it recorded consolidated revenue of 6.47 billion won in the second quarter of 2026, exceeding market consensus (6.2 billion won).

Profitability also improved this quarter as the proportion of high-value-added material sales expanded. Second-quarter material sales totaled 5.05 billion won. Of this amount, sales of the company’s core product, shape-memory alloy (SMA), reached 4.24 billion won. Shipments of finished SMA products also rose to 29,391 units, a 98.9% increase compared to the same period last year.

Driven by an improved product mix, the consolidated gross profit margin (GPM) rose by 30.6 percentage points year-over-year to 85.2%.

By region, sales in North America reached 3.06 billion won, a 1,301.7% increase compared to the same period last year. This was driven by the full-scale launch of supplies to AB Med in Canada. Sales in Asia (excluding South Korea) also rose 76.1% year-over-year to 2.43 billion won, bolstered by expanded supplies to a partner company in Pakistan.

The consolidated operating loss for the second quarter was 3 billion won. The company explained that this was due to the recognition of approximately 1.6 billion won in provisions for expected credit losses on accounts receivable, as well as initial investment costs for its U.S. subsidiary. According to the company, there were no confirmed bad debts or individually impaired receivables in the first half of this year, and it is possible that a portion of the provisions may be reversed depending on future collections.

On a standalone basis, adjusted selling, general, and administrative expenses (excluding bad debt provisions) rose 15.6% from 5.7 billion won in the first quarter to 6.6 billion won in the second quarter, while revenue increased 104.4% from 3.48 billion won to 7.13 billion won over the same period. Consequently, the adjusted operating loss narrowed from 2.9 billion won to 860 million won, and the adjusted SG&A-to-revenue ratio also decreased from 163.5% to 92.5%.

Graphy Inc. plans to expand its supply from individual dental clinics to multiple clinics in the second half of the year by completing supply trials and launching commercial operations with a major U.S. Dental Service Organization (DSO). The company is also moving forward with establishing a production base in Europe based on CE-MDR certification. It intends to strengthen its recurring revenue base by expanding its R-191 series of prosthetic materials.

The company also explained that collaborations with strategic partners, such as Megagen and Ray Co., Ltd., are scheduled to proceed sequentially. Graphy Inc. stated, “This second quarter saw an increase in the proportion of high-margin material sales and the effects of operating leverage,” adding, “In the second half of the year, we will strive to ensure that the expansion of our global business and the results of our strategic partnerships are reflected in our financial performance.”