QPS Holdings (464A) Q1 2025 earnings summary

Executive summary

• 1Q FY2025 revenue was ¥350 million, a 99.7% year-over-year increase, driven by government satellite projects, but a special loss from the 5th satellite led to a net loss of ¥1,903 million.

• The company revised its full-year outlook to reflect the impairment loss from the 5th satellite but expects operating and ordinary profit to remain positive.

• The business continues to focus on building a 24-satellite constellation by FY2028, with no major impact from the early retirement of the 5th satellite.

• The successful launch of the QPS-SAR 8 satellite and the publication of its first images were achieved.

Financial highlights

• 1Q operating loss: ¥228 million (improved by ¥142 million year-over-year), net loss: ¥1,903 million, mainly due to a ¥1.63 billion special loss from the 5th satellite impairment.

• EBITDA for 1Q: negative ¥55 million, improved by ¥20 million year-over-year.

• Full-year revenue forecast unchanged at ¥3,160 million; operating profit forecast at ¥290 million; net loss forecast widened to ¥1,620 million due to impairment.

• Total assets decreased to ¥11,562 million from ¥12,821 million at the previous fiscal year-end; equity ratio declined to 57.5%.

• EPS for the quarter was negative ¥51.91, compared to negative ¥5.75 year-over-year.

Outlook and guidance

• Revenue and profit expected to increase sequentially from 2Q as satellite development and data sales ramp up.

• Full-year guidance maintained for revenue, with profit forecasts adjusted for the 5th satellite impairment.

• The company remains committed to its plan for a 24-satellite constellation by FY2028.