The key focus in FY2026 Q3 is whether the company is on pace to meet its full-year revenue forecast

Revenue from January to June 2026 was ¥20.820 million, representing progress of 28.2% against the FY2026 full-year forecast of ¥71 million for the fiscal year ending December 2026. At the end of the first half, this was 21.8 percentage points below the simple time-apportioned benchmark of 50%, making whether cumulative revenue through Q3 reaches the simple time-apportioned benchmark of ¥53.25 million one checkpoint. To achieve the full-year forecast, the company needs ¥50.180 million in revenue in the second half, or ¥25.090 million in each of the two second-half quarters assuming an even distribution. This is approximately 2.4 times the first-half quarterly average of ¥10.410 million.

By segment, first-half revenue was ¥16.342 million for the regenerative medicine support business and ¥4.477 million for the cell-sheet regenerative medicine business. Revenue in the former fell by ¥18.780 million from ¥35.122 million in the same period of the previous year, a decline of approximately 53.5%. Revenue in the latter, meanwhile, increased by ¥2.602 million from ¥1.875 million, representing growth of approximately 138.8%. As the regenerative medicine support business accounted for approximately 78.5% of first-half revenue, growth in the cell-sheet business alone remains insufficient to offset the decline in the support business.

On the earnings side, the regenerative medicine support business reported an operating loss of ¥72.309 million, while the cell-sheet regenerative medicine business reported an operating loss of ¥364.306 million. Although the cell-sheet business reduced its operating loss by ¥84.353 million from the same period of the previous year, the loss remains large relative to segment revenue of ¥4.477 million, and the business has not yet reached the stage where revenue growth translates directly into profitability. Next time, it will be necessary to confirm whether a recovery in sales of the regenerative medicine support business leads not only to higher revenue but also to a smaller operating loss, and how much of the research and development burden is absorbed by higher revenue in the cell-sheet business.

At present, revenue by region, orders received and order backlog, and full-year revenue forecasts by segment have not been disclosed. Accordingly, in Q3 it will be important to see whether the company provides a breakdown of the specific projects, regions and products making up the ¥50.180 million required in the second half, including overseas markets, UpCell® flasks and regenerative medicine CDMO. Even if the full-year forecast is maintained, insufficient Q3 revenue and project development would leave a plan in which revenue is heavily weighted toward Q4.