Upfront costs increased due to full-scale clinical trials and U.S. business expansion

R&D investments significantly expanded for key regenerative medicine pipelines

ROKIT Healthcare, a company specializing in AI-powered hyper-personalized organ regeneration platforms, recorded strong top-line growth in the first half of this year.

ROKIT Healthcare reported consolidated revenue of KRW 16.275 billion for the first half of 2026, up 67.6% from KRW 9.708 billion in the same period last year. The strong growth was driven by the expansion of its global business and growth across its key business segments. However, as upfront investments were concentrated in clinical trials, research and development, and the expansion of its U.S. business, the company recorded an operating loss of approximately KRW 15.8 billion for the first half.

In particular, R&D investment increased significantly as the company’s major pipelines entered full-scale clinical stages. Recurring research and development expenses rose from approximately KRW 255 million in the same period last year to approximately KRW 2.87 billion in the first half of this year. These investments were primarily directed toward domestic cartilage clinical trials and efficacy analyses of the kidney regeneration platform. The company views these expenditures as planned investments associated with the advancement of its key regenerative medicine pipelines into clinical stages.

A significant portion of the increase in personnel expenses also consisted of non-cash expenses. Of approximately KRW 7.19 billion in salary-related expenses recorded during the first half, approximately KRW 2.53 billion was recognized as share-based compensation expenses resulting from the fair value assessment of employee stock options. The remainder was primarily used for personnel required to support clinical development and business expansion.

Expenses related to the expansion of the U.S. business were also concentrated in the first half of the year. Most of the increase in service fees and advertising expenses occurred at the company’s U.S. subsidiary, ROKIT AMERICA, mainly due to higher sales commissions and advertising and promotional expenses associated with sales and marketing activities. As the company continues to expand its business infrastructure in the U.S. market, related sales, marketing, and professional service expenses have increased accordingly.

An increase in bad debt expenses also affected profitability. In accordance with K-IFRS, the company applies a conservative accounting policy under which allowances for doubtful accounts are recognized based on the aging of trade receivables and historical non-collection rates, regardless of whether an actual default has occurred. Accordingly, the increase does not indicate that a specific customer has been confirmed as insolvent. Rather, expected credit losses are recognized in advance until the receivables are collected, and such provisions may be reversed upon subsequent collection.

The company views the first half of this year as a period in which investments in clinical development of its major regenerative medicine pipelines and global business expansion accelerated in earnest. In the second half, ROKIT Healthcare plans to maintain its top-line growth while focusing on converting its previously executed R&D and global business investments into tangible business results and improving the efficiency of its cost structure.

A company representative said, “In the first half, we achieved approximately 68% year-on-year revenue growth while concentrating investments in clinical trials and R&D for our major regenerative medicine pipelines, including cartilage, diabetic foot, and kidney regeneration, as well as in the expansion of our U.S. business. In the second half, we plan to gradually demonstrate tangible results from our ongoing clinical programs and global business initiatives while continuing to drive top-line growth and improve cost efficiency.”