Synspective (290A) Q1 2025 earnings summary

Executive summary

• Q1 total revenue, including subsidy income, rose 125.8% YoY to ¥1.156B; constellation investment widened operating losses.

• Order backlog reached ¥21.853B at quarter-end; four Strix satellites were operational.

• Net sales were ¥1.138B, driven by completed Cabinet Office and Ministry of Defense demonstrations; total revenue also included METI SBIR subsidy income.

• A U.S. subsidiary was established to expand business in North and Latin America.

Financial highlights

• Operating loss was ¥907M versus ¥355M a year earlier; net loss attributable to owners of parent was ¥1.188B versus ¥398M.

• Ordinary loss totaled ¥1.202B; gross profit was ¥66M, with cost of sales at ¥1.072B and SG&A expenses at ¥973M.

• EBITDA was negative ¥268M, compared with negative ¥331M in Q1 FY2024.

• Cash and cash equivalents were ¥13.299B at quarter-end, down ¥940M from December-end.

• Total assets were ¥29.236B, net assets were ¥20.291B, and the equity-to-asset ratio was 67.3%.

Outlook and guidance

• FY2025 forecast unchanged: total revenue ¥6.113B, net sales ¥2.321B, operating loss ¥4.524B, ordinary loss ¥1.473B, net loss ¥1.482B and EBITDA ¥1.242B.

• Q1 progress was 49.1% of forecast net sales and 18.9% of total revenue, reflecting second-half weighting of subsidy income.

• Year-end operational satellite target is six, including two launches planned for 2H FY2025; annual production capacity of six satellites is to be established this fiscal year.

• 75% of forecast sales are expected from public agencies; 86% of those bids/contracts had been awarded, and subsidy income is assumed to be recorded upon payment.

• No dividends are forecast for FY2025.