QPS Holdings (464A) Q1 2026 earnings summary

Executive summary

• Q1 revenue reached ¥425 million, up 21.5% year-over-year, driven by steady development, research projects, and progress in satellite data sales.

• Achieved two successful commercial satellite launches, expanding the operational constellation to four satellites and supporting business growth.

• The business model centers on developing, manufacturing, and operating small SAR satellites, with data sales primarily to government agencies and growing private/overseas interest.

• The company is actively investing in satellite launches and R&D, aiming to expand its SAR satellite constellation to 10 operational satellites by fiscal year-end.

• Operating loss widened to ¥410 million due to higher depreciation and cost of sales from increased satellite operations.

Financial highlights

• Q1 revenue: ¥425 million, up from ¥350 million year-over-year (21.5% increase).

• Operating loss for Q1: ¥410 million (vs. ¥228 million loss year-over-year); net loss: ¥487 million (vs. ¥1,903 million loss year-over-year).

• Full-year revenue forecast: ¥4 billion (up 49.2% year-over-year).

• Full-year operating loss forecast: ¥2.2 billion; net profit forecast: ¥500 million; EBITDA forecast: ¥2.8 billion.

• Q1 EBITDA: negative ¥212 million; EPS: -¥10.18 (improved from -¥51.91 year-over-year).

Outlook and guidance

• Full-year net profit expected at ¥500 million, with a turnaround from Q1 losses due to anticipated government subsidies and increased sales in later quarters.

• Major revenue and profit contributions are expected in Q4, with a back-loaded earnings structure.

• No change to previously announced guidance.

• Expansion of satellite constellation and manufacturing capacity to support future growth.

• Full-year operating profit forecast: ¥600 million; net profit forecast: -¥2,200 million.