QPS Holdings (464A) Q4 2025 earnings summary

Executive summary

• Achieved 20th anniversary, emphasizing growth in small SAR satellite development and operations, with a focus on expanding satellite constellation and government partnerships.

• Positioned as a leader in high-precision, small SAR satellite technology, with 11 satellites operated and strong technical expertise.

• Revenue increased 62.1% year-over-year to ¥2,681 million, driven by satellite launches and expanded operations.

• Operating profit reached ¥85 million, turning positive due to higher sales, but net loss of ¥1,848 million was recorded, mainly due to a ¥1,636 million impairment loss on the 5th satellite.

• The company successfully launched three new satellites, advancing its constellation strategy.

Financial highlights

• Revenue increased 62.1% year-over-year to ¥2,681 million for FY2025/5, driven by commercial SAR satellite operations and increased orders from government and private sectors.

• Operating profit reached ¥85 million, but net loss of ¥1,848 million was recorded, mainly due to a ¥1,636 million impairment loss on a satellite.

• EBITDA improved 22% year-over-year to ¥521 million.

• Total assets increased to ¥23,920 million, with equity of ¥14,879 million at FY2025/5 end.

• Cash and equivalents at year-end were ¥11,833 million, nearly doubling from the prior year.

Outlook and guidance

• FY2026/5 revenue projected to rise to ¥4,000 million, with operating profit of ¥600 million and net profit of ¥500 million, supported by increased satellite production and expanded sales to domestic and overseas markets.

• Business income expected to reach ¥7,200 million, with further growth anticipated from 2027/5 as data provision expands.

• Plan to operate 10 satellites by end of FY2026/5, aiming for 24–36 satellites in the medium term to achieve near real-time Earth observation.

• Five additional satellites are planned for launch by May 2026, with a focus on government sales.

• Assumes an exchange rate of 1 USD = ¥150.