Losses continue to widen despite higher sales, putting the quality of monetization under scrutiny

FY2027-Q1 revenue was ¥35.699 million, up ¥27.999 million from ¥7.700 million in the year-ago period. The growth rate was 363.6%. However, the increase in revenue did not translate into improved earnings. The operating loss widened to ¥275.888 million from ¥189.793 million in the year-ago period, an increase of ¥86.095 million. The ordinary loss was ¥273.757 million, while the quarterly net loss attributable to owners of the parent was ¥281.439 million, indicating that losses widened through to net income.

Revenue consisted of ¥15.400 million from raw-material sales and ¥20.299 million from Comlex otic solution 1.5%. In other words, most of Q1 revenue of ¥35.699 million came from these two items. There was no confirmation that management fees, performance fees or gains on the sale of investments had emerged as recurring revenue. For FY2026 as a whole, raw-material sales of ¥89.900 million and revenue of ¥84.598 million from a revision to the profit-distribution method for Comlex following a contract amendment accounted for most of the ¥174.498 million in revenue, indicating continued reliance on legacy sales and contractual income.

Meanwhile, the FY2026 full-year operating loss was ¥965.988 million, and the net loss attributable to owners of the parent was ¥943.880 million. The operating margin was deeply negative, and revenue had not yet reached a level sufficient to absorb R&D expenses and the costs of launching the investment business. Although the equity ratio improved to 62.8% in FY2027-Q1 from 59.9% at the end of the previous fiscal year, the core-business issue of widening operating losses remains unresolved.

In FY2027-H1, the focus should not be limited to whether revenue exceeds the year-ago period. The composition of revenue and its relationship with expenses also need to be assessed. In particular, it will be important to determine whether investment-related income other than raw-material sales and Comlex was generated, how much R&D spending for the NANO MRNA business changed, and the extent to which personnel costs, outsourcing expenses and transaction costs associated with launching the investment business increased the operating loss. Full-year earnings guidance has not been disclosed because the impact of the number of investments and equity-market conditions makes a reasonable estimate difficult. Accordingly, comparable expense breakdowns and business KPIs in the H1 results will help improve earnings visibility.