ispace (9348) Q4 25/26 earnings summary

Executive summary

• Secured significant contracts and grants, including $81M SBIR and $76M ESA budgets, with total contract value for key missions rising to $64M and $62M respectively.

• Completed a public offering raising ¥18.2B, strengthening net assets to ¥15.1B as of March 2026; secured an additional ¥1B loan.

• Project revenue, including government subsidies, was ¥5,890M, up 18.4% year-over-year.

• Net sales for the year ended March 31, 2026, were ¥3,307M, down 30.3% year-over-year, with a net loss attributable to owners of the parent of ¥8,152M, an improvement from the prior year’s ¥11,945M loss.

• Major milestones include selection for Japan’s Space Strategy Fund and NASA’s CLPS program, and the introduction of the new ULTRA lander platform.

Financial highlights

• FY2026/3 project revenue increased 18% YoY to ¥5,890M, driven by higher subsidy income from Mission 3; net loss improved YoY.

• Net sales declined 26% YoY to ¥3,307M due to U.S. mission delays; gross profit margin at 50.2%.

• SG&A expenses decreased 27% YoY to ¥8,726M, reflecting a shift from R&D to COGS.

• Cash and deposits rose 126% YoY to ¥29,690M after the capital increase; interest-bearing debt increased 83% YoY to ¥29,443M.

• Operating and investing cash flows remained negative, offset by strong financing inflows from equity and borrowings.

Outlook and guidance

• FY2027/3 project revenue forecasted to rise 53% YoY to ¥9,000M, driven by SBIR and Space Strategy Fund grants.

• Gross profit expected to decline due to a ¥3.6B impairment loss from U.S. lander model integration; net loss projected to widen to ¥13,000M.

• Main revenue drivers will be Mission 3 (launch in 2028), with additional contributions from Missions 4 and 5 in subsequent years.