QPS Holdings (464A) Q2 2025 earnings summary

Executive summary

• Revenue for 2Q was ¥1,244 million, a 164.9% increase year-over-year, driven by strong government demand and successful satellite launches.

• Operating profit reached ¥6 million, reversing a ¥81 million loss in the prior year, with EBITDA improving to ¥268 million.

• Net loss widened to ¥1,728 million due to a ¥1,636 million impairment loss on the 5th satellite.

• The company revised its full-year outlook downward due to delays in defense-related prototype development, impairment losses, and costs associated with new stock warrants, but expects to maintain operating profitability.

• Adoption of the Space Strategy Fund and new capital raising through stock warrants will support further satellite constellation expansion.

Financial highlights

• 2Q revenue: ¥1,244 million (+164.9% YoY); operating profit: ¥6 million (vs. ¥-81 million YoY); ordinary profit: ¥190 million (vs. ¥-162 million YoY); net loss: ¥-1,728 million (vs. ¥-164 million YoY).

• EBITDA for 2Q: ¥268 million, returning to positive territory.

• Gross profit increased to ¥414 million from ¥183 million YoY.

• Operating expenses rose, with R&D costs more than doubling to ¥110 million.

• Cash and deposits at period-end were ¥8,383 million, up from ¥5,868 million at the previous year-end.

Outlook and guidance

• Full-year revenue forecast revised to ¥2,850 million (down from ¥3,160 million), with operating profit expected to be ¥20 million and net loss forecast at ¥1,960 million.

• Guidance revision reflects updated business conditions, project delays, and impairment losses.

• The company aims to expand its satellite constellation to 24 by FY2028, with a long-term goal of 36 satellites for near real-time global observation.

• Focus will shift from government to private and overseas markets as satellite numbers increase.