ispace (9348) Q2 25/26 earnings summary

Executive summary

• Net sales for the first two quarters rose 63.5% year-over-year to ¥2,193.9 million, driven by progress in lunar surface development contracts and new payload service agreements.

• Incorporated lessons from Mission 2, with external reviews and JAXA technical support underway; briefing on findings planned for Q4.

• Mission 3 development progressing, with CDR scheduled for winter and total contract value expanded to $86Mn.

• Signed $22Mn PSA with Magna Petra for Helium-3 commercialization; established a Standing Review Board with U.S. space experts.

• Mission 4 development and sales ongoing, with $40Mn in contracts and $8Mn PSA signed with TASA.

Financial highlights

• Q2 FY2026/3 net sales rose 63.4% YoY to ¥2,193Mn, driven by Mission 3 progress; gross profit margin improved to 17.4%.

• Gross profit increased to ¥382.7 million from ¥204.7 million year-over-year.

• Net loss narrowed to ¥4.4Bn, with foreign exchange gains offsetting interest expenses; SBIR grant for Mission 4 to be recorded in Q4.

• Cash and deposits at ¥20,078Mn, up 53.1% from FY2025/3 Q4; total assets at ¥35,137Mn.

• Negative free cash flow from development offset by ¥15Bn new borrowings in May; capital increase in October not yet reflected.

Outlook and guidance

• Full-year forecast maintained: net sales of ¥6,200 million (up 30.7% year-over-year), operating loss of ¥11,500 million, and net loss attributable to owners of ¥8,300 million.

• Mission 3 launch scheduled for 2027, with sales and development milestones on track.

• Mission 4 launch expected in 2028, pending official approval of schedule change.

• Anticipates commencement of Mission 6 development within the fiscal year, contingent on major project order.

• Project income potential for M3 and beyond exceeds $350Mn, with additional demand estimated at over $600Mn.