Business revenue is ramping up more slowly than expected for the FY2026 full-year forecast, requiring a reassessment of progress in Q3

Business revenue for H1, from January to June 2026, was ¥36.7 million, down 15.5% year on year. The operating loss was ¥246.4 million, the ordinary loss was ¥243.2 million, and the interim net loss was ¥386.6 million. Losses therefore widened as revenue declined. The full-year forecasts are business revenue of ¥113 million, an operating loss of ¥569 million, an ordinary loss of ¥564 million and a net loss of ¥567 million. As of H1, progress on the revenue side was particularly slow.

Dividing the full-year forecast simply by the elapsed proportion of the fiscal year gives a benchmark of ¥84.75 million for cumulative business revenue through Q3. The gap from the H1 result of ¥36.7 million is ¥48.05 million, making the ability to record this amount in Q3 alone the first quantitative checkpoint for assessing the plausibility of the full-year forecast. However, the company’s revenue is affected by the timing of research support payments and milestone recognition, so the 75% elapsed-period benchmark is not a forecast, but merely a mechanical guide to evaluating progress.

On the cost side, business expenses in H1 were ¥283.1 million, including ¥132.4 million in research and development expenses. The operating loss of ¥246.4 million represents approximately 43.3% of the full-year forecast loss of ¥569 million, while the interim net loss has reached approximately 68.2% of the full-year forecast loss. The latter includes an impairment loss of ¥141.7 million. In Q3, it will therefore be necessary to distinguish increases in operating expenses from extraordinary losses when assessing the burden remaining for the rest of the year against the full-year forecast.

The earnings presentation provides the full-year forecast figures, but does not explicitly state H1 progress against the forecasts or assess overall performance against plan. The reporting structure also consists of a single segment, the drug discovery platform business, and does not disclose segment revenue, profit or operating margin. In FY2026 Q3, it will be important to assess cumulative and Q3-only business revenue, the breakdown by type of contract revenue, the remaining cost outlook, and whether the full-year forecasts are maintained or revised, as a whole.