Losses widen with no revenue, putting the path to the full-year loss forecast in focus

Revenue for the FY2026 interim period was disclosed as "-", while the operating loss was ¥471.154 million, the ordinary loss was ¥484.648 million and the interim net loss was ¥492.698 million. The loss widened by ¥33.797 million, or approximately 7.7%, from the operating loss of ¥437.357 million in the same period a year earlier, with all three levels—operating, ordinary and net—remaining in the red. The operating loss in FY2026-Q1 was also ¥237.327 million, worsening from ¥198.661 million in the same period a year earlier, so it cannot be confirmed that the widening loss was a temporary change limited to the interim period.

R&D expenses, disclosed as the main cause of the loss, were ¥206.764 million in the interim period, up ¥18.507 million, or approximately 9.8%, from ¥188.257 million in the same period a year earlier. However, because the company reports a single segment, it cannot be determined whether more costs were allocated to the iPS drug discovery business or the regenerative medicine business, or how much of R&D expenses related to clinical trials, preclinical research, personnel costs and outsourced services. In FY2026-Q3, it will be important to see whether the company provides additional disclosure on whether the increase in losses was driven by higher R&D expenses or by other personnel and business development costs.

The full-year operating loss forecast is ¥1,520 million, the ordinary loss forecast is ¥1,550 million and the net loss forecast is ¥1,616 million. Simply subtracting the interim operating loss of ¥471.154 million implies an operating loss of approximately ¥1,048.846 million in the second half. This is not the company’s official second-half forecast, but it provides a benchmark for assessing the position of cumulative losses through FY2026-Q3 relative to the full-year forecast. The cumulative operating loss through FY2025-Q3 was ¥668 million, and exceeding that amount would make the continuation of widening losses more evident.

At the same time, because both revenue and the full-year revenue forecast are undisclosed, the plan cannot be assessed using ordinary measures such as revenue progress or operating margin. In FY2026-Q3, it will be necessary to check not only the operating loss, but also whether revenue was recognized, whether the full-year forecast was revised, the cumulative R&D expenses and the allocation of costs among the development pipelines, in order to determine whether the current loss forecast reflects a deliberate level of spending to continue development investment or delays in monetization.