Flitto (KOSDAQ: 300080) - Sept. 2026

Flitto is substantially undervalued because enlarged AI-data contracts, strong operating leverage, and fast-growing translation solutions could drive 2026 earnings well above current expectations.

• Revenue rose 77% to ₩36.0bn in 2025, while operating income reached ₩6.2bn and the operating margin improved to 17%, after a ₩6.1bn loss and a negative 65% margin in 2021.
• In June 2026, two contracts with Flitto’s largest customer increased from ₩10.0bn to ₩22.7bn and from ₩3.9bn to ₩8.9bn, for combined orders of approximately ₩31.6bn; a further ₩1.1bn was added on September 2.
• The company reported ₩28.7bn of disclosed backlog at the H1 filing date, while booked first-half revenue plus backlog covered about 80% of Smoak’s full-year estimate; Q2 revenue was approximately ₩8.1bn with a 17% operating margin, versus ₩5.2bn and a small loss in Q1.
• Smoak estimates 2026 revenue of ₩51.5bn, operating income of ₩16.6bn, and net income of ₩17.4bn, implying at least 40% revenue growth, more than doubled earnings, 8.7x estimated earnings, and 2.6x EV/estimated revenue.
• Flitto’s Solution business grew 175% year over year in H1 2026, while its non-data revenue increased 97%; the company operates a 14-million-user database across 173 countries and reported a 68% 2025 contribution margin for AI-training data.

Takeaway: Smoak argues that Flitto’s valuation should rise toward specialist AI-data comparables because its contracts, profitability, and translation growth are underappreciated, but customer concentration and renewal of the largest customer’s contract for FY2027 remain material risks.