Flitto is an internet and platform company that sells human-plus-AI interpretation and translation along with the language data accumulated in that process, built on two pillars: translation services such as real-time multilingual voice interpretation, and the supply of language data for AI training, and it recently participates in public and private projects tied to the spread of hyperscale AI. In April 2026 supply contracts of ₩5.7 billion (28.0% of recent revenue), ₩4.2 billion (20.9%), and ₩3.9 billion (10.8%) were signed in succession, together exceeding half of annual revenue. The notable point right now is that just after swinging from loss to profit it shows high profitability with ROE in the 37% range and secured large supply contracts, and a price down more than 80% from its one-year high (RSI 29) as strengths, while a small market cap means a single disclosure can swing the metrics heavily and quarterly profit is uneven, as seen in the small Q1 loss.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 77.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 13.1% higher than a year earlier.
- Even versus the prior quarter (Q4 2025), revenue was 48.9% lower.
- ROE is 37.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 17.1%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Jung-soo 24.2% (individual)
Controlling bloc incl. related parties 31.32%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- Flitto is an internet and platform company that sells human-plus-AI interpretation and translation, along with the language data accumulated in that process.
- Broadly, it earns money in two branches.
- One is translation services such as real-time multilingual voice interpretation for meetings and conferences; the other is a business that gathers and processes voice and text across many languages and supplies the resulting AI-training language data to companies and institutions.
- Recently, tied to the spread of hyperscale AI (very large-scale AI models), it also participates in public and private projects such as AI digital business partnerships and AI foundation and data support.
- As a small company with a market cap around ₩92.8 billion, it is worth watching, alongside the business flow, how each disclosure such as a supply contract affects revenue and profit.
- The latest close is ₩6,610 and the market cap is ₩109.1 billion.
- The price sits below the 20-day line (₩7,130) and below the 60-day line (₩9,276).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an auxiliary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 40.9, at a neutral level.
- The one-month change is -13.4%, the three-month change is -39.4%, and the position versus the 52-week high is -66.5%.
- Relative strength against the KOSDAQ is 43 (1-99, converting the past year's return versus the index while weighting recent periods more heavily; higher means stronger than the market).
- That places it in roughly the top 57% by strength among all stocks.
- Over the past three months it lagged the index by 19.9%.
- Chart reading is best done alongside trading volume and the dates on which disclosures occurred.
- Recent annual revenue was ₩36.0 billion, operating profit ₩6.2 billion, and net profit ₩6.4 billion.
- With an operating margin of 17.1% and a net margin of 17.9%, profitability is solid, and ROE (how much is earned in a year on shareholders' equity), at 37.5%, is well above the average for the same industry.
- With a debt ratio of 142.8%, a current ratio of 516%, and an interest-coverage ratio of 17.9x, its ability to service debt and its short-term funding situation are also stable.
- On the metrics, the P/E ratio (how many times a year's earnings the price is) is 16.92x and the P/B (how many times book value the price is) is 6.34x.
- For a name like this that has just swung from loss to profit, the forward P/E based on future earnings is closer to the actual picture than the trailing figure computed on a single past year's earnings.
- Given that ROE is in the 37% range, a P/B in the 5x range is better read as a value reflecting high return on equity rather than simply expensive.
- Revenue rose from ₩17.8 billion in 2023 to ₩20.3 billion in 2024 and ₩36.0 billion in 2025, with the pace of increase accelerating year after year (+14.3% then +77.2% year over year).
- The more striking change is earnings.
- Operating profit swung to a positive ₩6.2 billion in 2025 from -₩5.1 billion in 2023 and -₩400 million in 2024, and net profit turned from -₩6.8 billion to +₩6.4 billion.
- This corresponds to an inflection point where the company has shed losses and begun to earn in earnest.
- This year's outlook has revenue of ₩26.1 billion, net profit of ₩5.1 billion, and a forward P/E set.
- The background to these figures being at this level is clear.
- Demand for AI-training language data is growing with the spread of hyperscale AI, and in the spring of 2026 large supply contracts equal to 20-28% of revenue were signed in succession, securing ammunition that will feed into this year's revenue.
- Q1 2026 revenue was ₩5.2 billion, up 13.1% from the same period a year earlier, but operating profit was a small loss of -₩64.1 million.
- That said, this company's revenue is somewhat uneven quarter to quarter (differences in first- and second-half recognition timing), so it is early to judge the full year on Q1 alone.
- There is as yet no basis to think earnings after next year will fall below this year's, and whether the secured contracts are recognized as revenue step by step is the key to this year's outlook.
- Into April 2026, large supply-contract disclosures came one after another.
- On April 15, a single supply contract of ₩5.7 billion (28.0% of recent revenue) was signed, and on April 3, contracts of ₩4.2 billion (20.9%) and ₩3.9 billion (10.8%) (the first two including corrected filings).
- Combined, the three exceed half of recent annual revenue, forming a solid foundation for this year's revenue outlook.
- That said, contracts matter for their term as well as their amount, and whether a transaction is one-off or repeatable determines the mid-term reading.
- It is worth following how the contracts are actually recognized as revenue and profit quarter by quarter.
- The strong points are distinct.
- Just after swinging from loss to profit, it is generating high profitability with ROE in the 37% range, and amid an accelerating pace of revenue growth, supply contracts exceeding half of this year's revenue are already secured.
- Given this level of return on equity and growth pace, the trailing P/E of 14x and the forward P/E are hard to see as an excessively expensive stretch, and the share price has fallen more than 80% from its one-year high down into depressed territory (RSI 29), far from a state where expectations are heavily loaded onto the price.
- On the other side, the points to be careful about are equally clear.
- The small market cap means a single disclosure or a single financing event can swing the metrics heavily, and quarterly profit is uneven, as the small Q1 loss shows.
- In sum, this is a name that is strong in a phase where the secured supply contracts are steadily recognized as quarterly revenue and profit and data demand continues, and weak in a phase where contracts prove one-off or profit swings heavily quarter to quarter.
🔎 Valuation vs peers Overvalued
A market-cap-adjacent peer set within internet and platform.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kidari Studio | 18.61x | 0.61x | 3.26% |
| Saramin | 1.81x | 0.62x | 34.43% |
| YG PLUS | 9.38x | 1.11x | 11.88% |
We looked first at a public-data peer set with a comparable market cap within internet and platform. The current P/E is 16.92x and the P/B is 6.34x. Because lower-cap names are heavily affected by earnings swings and financing disclosures, we did not draw a firm conclusion from last year's confirmed-results metrics alone. The basis for the forecast box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩26.1 billion | — | ₩5.1 billion |
| Next quarter | Q2 2026 | ₩4.9 billion | — | ₩1.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩6,610 and the market capitalization is ₩109.1 billion. The price sits below its 20-day moving average (₩7,130) and below its 60-day moving average (₩9,276). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 40.9, a neutral level. The one-month change is -13.4%, the three-month change is -39.4%, and the position relative to the 52-week high is -66.5%. Relative strength versus the KOSDAQ is 43 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 43% of all stocks. Over the past three months it lagged the index by 19.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -19.85% / 6M -49.05% / 12M -50.45%
Key metrics vs sector median
Valuation
The P/E of 16.92x is in line with the sector median (14.81x). The P/B of 6.34x is above the sector median (1.11x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.7%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 37.5%, above the sector average (12.0%). The operating margin is 17.1%. The debt ratio is 142.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $11.8M | $13.5M | $23.8M | +77.23% ↑ faster |
| Operating profit | -$3.4M | -$262,687 | $4.1M | — |
| Net profit | -$4.5M | $536,404 | $4.3M | +696.73% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.2M | $9.0M | $11.8M | $13.5M | $23.8M |
| Operating profit | -$4.1M | -$4.4M | -$3.4M | -$262,687 | $4.1M |
| Net profit | -$3.8M | -$3.9M | -$4.5M | $536,404 | $4.3M |
| Revenue CAGR | 4-yr avg 40.10% | ||||
Revenue rose 77.2% year over year (2023 ₩17.8 billion → 2024 ₩20.3 billion → 2025 ₩36.0 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 40.1%. The two-year revenue CAGR is 42.3%. In the most recent quarter (Q1 2026), revenue was 13.1% higher than the same period a year earlier. Because quarterly results are relatively even in this industry, revenue also came in 48.9% lower than the prior quarter (Q4 2025), so the recent trend looks soft.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
Technical indicators
What stands out
- ROE of 37.5% points to solid profitability.
- Revenue grew 77.2% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-15Contract[Corrected filing] Single supply contract signed: contract value ₩5.7 billion, 28.0% of recent revenueThe contract value and term are key to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the mid-term reading. Source
- 2026-04-03Contract[Corrected filing] Single supply contract signed: contract value ₩4.2 billion, 20.9% of recent revenueThe contract value and term are key to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the mid-term reading. Source
- 2026-04-03ContractSingle supply contract signed: contract value ₩3.9 billion, 10.8% of recent revenueThe contract value and term are key to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the mid-term reading. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩6,610 | ₩6,610 | Confirmed | link |
| Latest quarterly results | revenue ₩5.2 billion, operating profit -6,410 | revenue ₩5.2 billion, operating profit -6,410 | Confirmed | link |
| Annual results | revenue ₩36.0 billion, operating profit ₩6.2 billion | revenue ₩36.0 billion, operating profit ₩6.2 billion | Confirmed | link |
| Contract disclosure (original text) | []ㆍapprox. : approx. ₩5.7 billion · revenue 28.0% | []ㆍapprox. : approx. ₩5.7 billion · revenue 28.0% | Confirmed | link |
| Contract disclosure (original text) | []ㆍapprox. : approx. ₩4.2 billion · revenue 20.9% | []ㆍapprox. : approx. ₩4.2 billion · revenue 20.9% | Confirmed | link |
| Contract disclosure (original text) | ㆍapprox. : approx. ₩3.9 billion · revenue 10.8% | ㆍapprox. : approx. ₩3.9 billion · revenue 10.8% | Confirmed | link |
| Forecast box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-02Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07Amended filing
- 2026-04-15Single supply/sales contract (amended)
- 2026-04-03Single supply/sales contract (amended)
- 2026-04-03Single supply/sales contract
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-04Disclosure
- 2026-03-04Shareholders' meeting notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.