Liberaware (218A) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended January 31, 2026, grew 13% year-over-year to ¥697 million, driven by strong drone sales, but overall sales were below target due to slow ramp-up in non-drone segments.

• Gross profit margin remained high at 46%, reflecting the profitability of drone sales.

• Significant R&D investment, especially in SBIR projects, led to an expanded ordinary loss and a net loss of ¥516 million, but this is expected to be offset by subsidies and future growth.

• Key initiatives included expanding drone-based sewer inspections, launching the IBIS2 distributor system, and progressing national SBIR projects for construction and railway maintenance.

• Overseas expansion activities advanced in South Korea and Southeast Asia, with ongoing R&D for next-generation products.

Financial highlights

• Net sales: ¥697 million in Q2 FY2026, up 13% year-over-year.

• Gross profit: ¥323 million, up 19% year-over-year; gross profit margin increased by 2.3 points to 46.3%.

• Drone sales surged 124% year-over-year, reaching ¥232 million in Q2.

• Ordinary loss expanded to ¥515 million due to increased R&D expenses, mainly for SBIR projects; interim net loss was ¥516 million.

• Cash and deposits decreased by ¥220 million from the previous fiscal year, with total assets at ¥1,385 million.

Outlook and guidance

• Full-year FY2026 revenue forecast remains at ¥2,220 million, a 57% increase year-over-year, with an expected net loss of ¥177 million and basic EPS of ¥-9.44.

• Gross profit margin is expected to rise to 50.6% for the full year.

• Ordinary income (excluding SBIR timing differences and stock-based compensation) is expected to be positive.

• Q2 progress rate for net sales was 31% of the full-year forecast, with expectations for a strong Q3 due to seasonality.

• No changes to previously announced forecasts.