Synspective (290A) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 2026 was ¥746.9 million, down 35.4% year-over-year, mainly due to lower net sales as prior-year defense contracts did not recur, though new government and defense contracts were secured for future periods.

• Net sales were ¥697.5 million (down 38.7% year-over-year), with subsidy income of ¥49.3 million (up 177.9% year-over-year).

• Operating loss widened to ¥1,613.2 million from ¥907.1 million a year earlier; net loss attributable to owners was ¥1,731.5 million versus ¥1,188.8 million in Q1 2025.

• Order backlog reached ¥124.4 billion, driven by major new contracts and government initiatives.

• Four satellites were operational as of March 31, 2026, with a fifth pending verification; launch contracts secured for 26 additional satellites.

Financial highlights

• Cost of sales rose 6.5% year-over-year to ¥1,142.2 million, mainly due to direct project costs.

• Selling, general, and administrative expenses increased 20.1% year-over-year to ¥1,168.5 million, reflecting higher personnel and share-based compensation.

• Total assets at March 31, 2026 were ¥48.4 billion, down ¥1.0 billion from December 2025, mainly due to satellite component purchases and launch prepayments.

• Cash and deposits stood at ¥20.0 billion, down from ¥24.5 billion at year-end.

• Equity-to-asset ratio was 74.3% at quarter-end.

Outlook and guidance

• Full-year 2026 revenue forecast is ¥16.1 billion (up 161.4% year-over-year), with net sales of ¥6.4 billion (up 167.3%).

• Operating loss for the year is projected at ¥5.5 billion, with net profit of ¥2.6 billion and basic EPS of ¥19.90.

• No change to previously announced full-year guidance.