Liberaware (218A) Q4 2025 earnings summary

Executive summary

• Achieved record revenue growth and first-ever recurring profit, driven by expansion in the indoor drone inspection market and increased recognition of products like IBIS.

• Focused on providing drone and data solutions for industrial infrastructure inspection, especially in confined, hazardous environments.

• Major growth in both domestic and overseas markets, with new industry applications such as sewer inspections and expansion into Korea, Hong Kong, and Malaysia.

• Advanced three major government-backed SBIR projects, including disaster response and railway inspection solutions.

• Established a wholly owned Korean subsidiary to expand overseas presence.

Financial highlights

• FY2025 revenue: ¥1,406.9 million (+72% YoY); gross profit: ¥669 million (+86% YoY); gross margin: 47% (+3pts YoY).

• Operating and recurring profit turned positive, with recurring profit at ¥46.9 million, a ¥480 million improvement YoY.

• Q4 revenue hit a record ¥426 million, driven by strong sales of IBIS2 and large inspection projects.

• Cash and equivalents at year-end were ¥751.9 million.

• No dividends declared for the fiscal year.

Outlook and guidance

• FY2026 revenue forecast: ¥2,220 million (+57.8% YoY); gross profit: ¥1,123 million (+67% YoY); gross margin target: 50%.

• Operating loss expected to widen to ¥2,412 million; net loss forecast at ¥178 million, reflecting significant R&D and SBIR project costs.

• Continued high growth expected, with investments prioritized for future expansion, especially in R&D and overseas markets.

• Adjusted recurring profit (excluding SBIR grant timing and stock compensation) expected to remain positive.