[Edaily Reporter NA EUN-KYUNG ] Coreline Soft Co., Ltd.(384470)posted its highest-ever quarterly revenue in the third quarter of this year, driven by the expansion of its overseas medical artificial intelligence (AI) business. Its operating loss narrowed to the lowest level since its IPO. In particular, since 80% of the improvement in earnings stemmed from revenue growth rather than cost reductions, analysts note that the expansion of overseas operations is beginning to translate into improved profitability.

Coreline Soft Co., Ltd. announced on the 13th that its standalone revenue for the third quarter of this year reached 2.33 billion won, a 139% increase compared to the same period last year. During the same period, the operating loss decreased by 38%, from 3.59 billion won to 2.22 billion won. This year’s operating loss has narrowed for three consecutive quarters, following 3.1 billion won in the first quarter and 2.37 billion won in the second quarter.

Cumulative consolidated revenue for the first three quarters reached 5.22 billion won, a 76.4% increase compared to the same period last year. In contrast, operating expenses decreased by 4.2% to 12.91 billion won. Consequently, the cumulative operating loss fell by 26.9%, from 10.52 billion won to 7.69 billion won.

What is noteworthy is the reason behind the reduction in losses. Revenue increased by 2.26 billion won compared to the same period last year, while operating expenses decreased by approximately 560 million won. This means that about 80% of the total improvement in profit and loss—2.82 billion won—stemmed from revenue growth.

Medical AI software incurs significant costs during the initial stages of technology development, regulatory approval, and adoption by medical institutions. However, once the product and supply infrastructure are established, profitability can improve significantly as revenue grows with an increase in customers and usage—a phenomenon known as operating leverage.

In fact, Coreline Soft Co., Ltd.’s cumulative overseas revenue for the first three quarters of this year reached 2.8 billion won, a 152.3% increase compared to the same period last year. The share of overseas revenue in total revenue also rose from 40% last year to 53.7% this year.

The expansion of recurring revenue is also notable. From January to September of this year, software recurring revenue reached 2.32 billion won, a 79% increase. The share of recurring revenue in total software revenue also rose from 45% to 55%. In particular, third-quarter recurring revenue totaled 950 million won, a 99% increase compared to the same period last year.

Coreline Soft Co., Ltd. is expanding its overseas business centered on its lung cancer screening AI solution, “AVIEW LCS.” In Europe, the company is increasing supplies to medical institutions participating in national lung cancer screening programs. The company explains that the business is progressing beyond simple product installation to a stage where revenue is generated from actual screenings and software usage.

The company is also pursuing a “One CT, Multi-Disease” strategy, which analyzes information related to various diseases—including lung cancer, emphysema, and coronary artery calcification—from a single chest computed tomography (CT) scan. The plan is to supply additional analysis solutions to existing medical institutions to increase revenue per customer.

Jeong Woo-seok, Executive Vice President of Coreline Soft Co., Ltd., stated, “What is noteworthy about these results is that approximately 80% of the improvement in the operating loss stemmed from revenue growth, not cost reductions.” He added, “As the technology and global customer base we have accumulated over the years have begun to contribute significantly to revenue, we expect the operating leverage effect—where additional revenue leads to improved profitability as the business scales up—to grow even stronger going forward.”