QPS Holdings (464A) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended February 2025 rose 79.8% year-over-year to 1,837 million yen, driven by successful satellite launches and increased industry momentum.

• Achieved successful launch of QPS-SAR 9, with initial operations proceeding smoothly and full-year results expected to meet forecasts based on 3Q performance.

• Secured 8.46 billion yen from the Space Strategy Fund, advancing funding for a 24-satellite constellation by FY2028.

• Despite higher sales, a significant impairment loss on a satellite led to a net loss of 1,833 million yen for the period.

• The company operates a single segment: earth observation satellite data.

Financial highlights

• 3Q FY2025 revenue: 1,837 million yen, up 79.8% year-over-year; operating profit: 22 million yen.

• Operating loss was 22 million yen, reversing from an operating profit of 111 million yen a year earlier.

• EBITDA for 3Q: 340 million yen, a 247% increase year-over-year.

• Full-year forecast (announced Jan 14, 2025): revenue 2,850 million yen, operating loss 320 million yen, net loss 1,960 million yen, EBITDA 450 million yen.

• Impairment loss of 1,636 million yen was recorded due to a malfunction in the QPS-SAR 5 satellite.

Outlook and guidance

• Full-year results expected to land in line with forecasts, with no major changes in assumptions.

• FY2026 to see increased revenue from more satellites in operation and expanded data provision to government agencies.

• Production capacity to increase from 4 to 6 satellites per year, with new facility operational.

• Space Strategy Fund support (8.4 billion yen) secured through FY2026, with potential for further increases based on future evaluations.

• No change to previously announced guidance.