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Benefiting from growth in US obesity treatment market

1Q26 review: Both revenue and OP beat consensus

For 1Q26, InBody reported revenue of W68.4bn (+23% YoY), beating the consensus and marking a record high for the ninth consecutive quarter. Operating profit also came in above the consensus at W13bn (+86% YoY; OP margin of 19%).

By product, revenue was W56.5bn (+23% YoY) for professional-use InBody (including software), W8.7bn (+35% YoY) for consumer-use InBody (InBody Dial and InBody Band), and W3.3bn (+3% YoY) for medical devices.

By region, revenue was W9.1bn (-3% YoY) in Korea, W5.2bn (+5% YoY) in Japan, W28.6bn (+32% YoY) in North America, W13.2bn (+41% YoY) in Europe, W5.7bn (+17% YoY) in Africa/the Middle East, and W6.3bn (+26% YoY) in China.

Raise TP to W55,000; maintain Buy

We lift our target price for InBody to W55,000 (from W45,000), reflecting upward revisions to our earnings estimates. With our target price implying 85.5% upside potential, we reiterate our Buy rating.

A key highlight of the 1Q26 results was the emergence of new demand linked to the growing obesity treatment markets in the US and Europe, particularly from obesity clinics and pharmaceutical companies using the company’s products for treatment-related research. This is also driving increased demand for high-end models priced above US$15,000. Revenue from high-end models reached W10.1bn (+55% YoY) in 1Q26, accounting for 21% of professional-use InBody revenue. We expect obesity treatment-related markets to remain a key growth driver throughout the year.

It is also encouraging that the company achieved margin improvement despite cost pressures. The aggressive workforce expansion carried out in 2025 is now largely completed, while company-wide cost-cutting initiatives are beginning to bear fruit, supporting faster-than-expected margin improvement.

Reflecting this, we forecast 2026 revenue at W277.6bn (+19% YoY) and adjusted EBITDA at W64.0bn (+33% YoY; adjusted EBITDA margin of 23%). While the stock once traded at a significant premium of over 30x 12-month forward EV/EBITDA, it is currently trading at just 3.3x (vs. three-year average of 4.6x).

We see multiple potential re-rating drivers for InBody: its status as a category creator/original brand, margin expansion potential, solid balance sheet, high export exposure, business model that generates value for customers, and partnership with NAVER. While detailed collaboration strategies with NAVER have yet to be disclosed, we see the greatest synergy potential in the software business and B2C market in Asia.