ispace (9348) Q3 25/26 earnings summary

Executive summary

• Net sales for the first nine months rose 37.9% year-over-year to ¥2,743.7 million, driven by progress in lunar surface development projects and increased government support for space initiatives.

• Multiple lunar missions in progress, including Mission 3 (launch 2027), Mission 4 (2028), and Mission 6 (2029), with significant contracts secured from NASA, ESA, and JAXA.

• The company secured significant government and international contracts, including a maximum of ¥4.7 billion from Japan's Space Strategy Fund and a $40 million payload service contract for Mission 4.

• Ongoing technical improvements and risk mitigation measures are being implemented following a failed lunar landing, with external expert involvement and support from JAXA.

• Established a new subsidiary in Saudi Arabia to tap into a rapidly growing space market.

Financial highlights

• Q3 FY2026/3 net sales rose 37.9% YoY to ¥2,743M; gross profit at ¥667M, gross margin 18.5%.

• Net loss for Q3 improved to ¥6,246M from ¥7,365M YoY, aided by foreign exchange gains.

• Operating loss widened to ¥6,948.8M from ¥6,434M YoY.

• SG&A decreased 7.7% YoY to ¥6,281M, with R&D expenses down 27.1% YoY.

• Cash and deposits increased 161.3% YoY to ¥34,273M, following a capital increase.

Outlook and guidance

• Project revenue for FY2026/3 revised down by ~40% from initial plan, mainly due to deferral of revenue recognition to future periods, not contract losses.

• Full-year net sales forecast revised to ¥6,000 million, up 20.7% year-over-year.

• Projected operating loss for the full year: ¥10,000 million; net loss: ¥7,200 million.

• Net loss forecast improved due to deferred development expenses and foreign exchange gains.

• Revenue recognition delays primarily linked to engine development setbacks for Missions 3 and 4.