Liberaware (218A) investor relations material

Executive summary

• Net sales for Q3 FY7/2026 reached a record 1,216 million yen, up 24% year-over-year, driven by strong drone sales despite sluggish service revenues.

• Provides drone and robotics-based inspection solutions for industrial infrastructure, focusing on confined, hazardous environments and digital transformation of maintenance processes.

• Losses expanded at all profit stages due to increased growth investments in personnel and R&D, particularly for SBIR projects.

• Expanded collaborations with government, industry, and overseas partners to promote drone adoption, especially in sewerage and railway sectors.

• Strategic focus on medium- to long-term growth led to delays in new business areas and overseas expansion, with revenue contributions expected from the next fiscal year.

Financial highlights

• Net sales: 1,216 million yen (+24% YoY); Gross profit: 513 million yen (+12% YoY); Gross profit margin: 42.1% (down from 46.4%).

• Ordinary loss: (1,348) million yen; Operating loss: (1,969) million yen; Net loss attributable to owners: (1,349) million yen.

• Gross profit was 513 million yen, with significant government grant income of 660 million yen.

• Cash and deposits decreased by 122 million yen due to timing of SBIR R&D expenditures and subsidy receipts.

• No dividends declared or forecasted for the fiscal year.

Outlook and guidance

• Full-year net sales forecast revised downward to 1.7–1.9 billion yen due to delays in new business launches and slower-than-expected service revenue.

• Expected net loss for the full year is 575–731 million yen.

• Drone sales remain strong, with a recovery trend expected in the second half and into the next fiscal year.

• Revenue from new products (Torinosu) and overseas markets anticipated from the next fiscal year.

• Gross profit margin expected to improve as sales mix shifts back to higher-margin projects.