QPS Holdings (464A) Q4 2024 earnings summary

Executive summary

• Achieved a major turning point with first commercial satellite operation, stock market listing, and operating profit for the full year 2024/5.

• Achieved significant revenue growth, with sales up 344.5% year-over-year to ¥1,653.9 million, driven by successful launches and commercialization of small SAR satellites.

• Commercial satellite QPS-SAR 6 contributed to operating profit in Q2 and proved the business model's viability.

• Despite operating profit and ordinary profit, posted a net loss of ¥427 million due to impairment losses on satellite assets.

• Secured funding through IPO and bank loans to support near-term growth and satellite constellation expansion.

Financial highlights

• FY2024/5 revenue: ¥1,653.9 million, up 344.5% year-over-year.

• Operating income: ¥341.3 million (vs. -¥314.7 million previous year); ordinary income: ¥207.9 million (vs. -¥323.9 million previous year).

• EBITDA: ¥426 million (vs. -¥275 million previous year).

• Net income: -¥427 million (improved from -¥1,105.2 million), impacted by a ¥580 million special loss from QPS-SAR 6 impairment.

• Cash and equivalents at year-end: ¥5,868.4 million, up ¥2,343.6 million YoY.

Outlook and guidance

• FY2025/5 revenue forecast: ¥3,160 million (+91.1% YoY), driven by satellite development contracts.

• Operating income forecast: ¥10 million; ordinary income: -¥290 million; net income: -¥310 million.

• EBITDA forecast: ¥730 million (+71.2% YoY).

• Plans to launch five additional small SAR satellites by May 2025, focusing on expanding sales to government agencies.

• Revenue growth expected from increased satellite count and government contracts, but higher depreciation and interest costs will weigh on profits.