SUSMED,Inc. FY2026 Q1 Earnings Report

Financial Highlights

• Operating Income: ¥-133M
• Net Income: ¥-120M
• EPS: ¥-7.17

Income Statement

Balance Sheet

Profitability Ratios

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Verdict: Q1 FY2026 was a loss-making but liquid quarter, with ample cash providing runway despite negative operating results. The company reported operating income of -1.33 (100M JPY) and ordinary income of -1.32 (100M JPY), pointing to continued investment phase dynamics. Net income came in at -1.20 (100M JPY), equivalent to basic EPS of -7.17 JPY on an average share count of 16.82 million. SG&A was 1.21 (100M JPY), indicating that fixed costs remain the dominant driver of the operating loss given revenue was unreported. Non-operating income and expenses were modest at 0.05 and 0.07 (100M JPY), respectively, with limited impact on the quarter’s loss profile. Balance sheet strength is notable: total assets were 43.76 (100M JPY) against total liabilities of only 1.32 (100M JPY), leaving equity at 42.55 (100M JPY). Liquidity is extremely high with current assets of 44.63 (100M JPY) versus current liabilities of 1.26 (100M JPY), yielding a current ratio of 35.4x (3,543.5%). Cash and deposits of 43.98 (100M JPY) represent virtually all assets, underscoring a substantial cash runway. Financial leverage is minimal (assets/equity 1.03x), which reduces solvency risk but also limits ROE amplification once profitability is achieved. Margins and top-line metrics cannot be assessed because revenue and gross profit were unreported; therefore, operating and net margins are not calculable for this quarter. There is an unexplained gap between profit before tax (-1.63) and net income (-1.20) not reconciled by reported tax (0.00), likely due to unreported below-the-line items or rounding within JGAAP classifications. Earnings quality cannot be evaluated due to unreported operating cash flow; however, the large cash balance provides a buffer against near-term funding needs. Retained earnings are negative at -12.18 (100M JPY), but are more than offset by capital surplus of 54.41 (100M JPY), preserving net equity. Forward-looking, the key swing factors are commercialization progress, reimbursement and regulatory milestones for digital therapeutics, and the pace of SG&A growth relative to revenue ramp. With cash at approximately 4.4 billion JPY and a quarterly net loss of about 120 million JPY, the implied runway is multi-year if losses remain at a similar magnitude, though OCF is unreported and could differ from accounting loss. Overall, the quarter reinforces a development-stage profile: limited P&L visibility but strong balance sheet capacity to execute near-term plans.

Profitability Analysis

ROE decomposition (DuPont): Net Profit Margin × Asset Turnover × Financial Leverage. Net profit margin is not calculable due to unreported revenue; asset turnover is also not calculable for the same reason; financial leverage is low at 1.03x (Assets 43.76 / Equity 42.55). The most significant driver of current ROE weakness is the negative earnings (net loss), not leverage or efficiency. The business reason is continued SG&A spend (1.21) against an unreported or nascent revenue base consistent with a digital therapeutics development stage. This dynamic appears recurring near term until commercial revenues scale; therefore, the pressure on margin-based ROE components is likely to persist in the short run. Operating leverage is currently negative (operating loss of -1.33) with fixed cost absorption low. We do not observe SG&A growth vs revenue trends this quarter due to missing revenue, but the absolute SG&A relative to asset size suggests the company is prioritizing pipeline and platform development. Sustainability: low leverage is sustainable and prudent; improvement in ROE depends primarily on achieving revenue traction and improving operating margin rather than balance sheet gearing.

Growth Assessment

Revenue was unreported, preventing quantitative growth analysis; thus, top-line sustainability and YoY trends cannot be inferred from this filing. Profitability remains negative at the operating and net levels, consistent with a pre- or early-commercialization phase. Non-operating items were minor and do not represent a growth engine. Given the cost base (SG&A 1.21) and minimal liabilities, growth investment is funded by existing cash rather than debt. Outlook hinges on regulatory approvals, payer reimbursement, and commercial execution for digital therapeutics, which can create step-function revenue once milestones are achieved but carry timing risk. Near-term, we expect losses to continue until product monetization accelerates; cost control will be important to extend runway.

Financial Health

Liquidity is very strong: current assets 44.63 vs current liabilities 1.26 produce a current ratio of 35.4x (well above the >1.5x benchmark). Quick ratio effectively mirrors the current ratio given cash and deposits of 43.98 dominate current assets. Working capital stands at 43.37, indicating ample capacity to meet obligations. Solvency is robust: total liabilities 1.32 vs equity 42.55 imply a D/E of ~0.03x; implied equity ratio is approximately 97% (42.55 / 43.76). There is no disclosed interest-bearing debt, and interest coverage is not computable due to lack of interest expense and operating profit. No maturity mismatch risk is evident: short-term liabilities are de minimis relative to liquid assets. No off-balance sheet obligations were disclosed in the provided data. Explicit warnings: none on current ratio (<1.0) or D/E (>2.0), as both metrics are well within conservative thresholds.

Cash Flow Quality

Operating cash flow was unreported, so OCF/Net Income cannot be calculated and earnings quality cannot be validated via cash conversion. Free cash flow is also unreported, limiting assessment of structural cash burn versus investment needs. However, the balance sheet indicates cash and deposits of 43.98, which should cover several quarters (likely years) of current loss levels (net loss -1.20 in the quarter), even if OCF were somewhat worse than accounting net income. Without working capital detail (AR, AP, inventories unreported), we cannot identify potential working capital manipulation or timing effects. Dividend and capex cash demands were unreported; based on the development-stage profile, capex is likely low relative to cash, but this is an assumption and not confirmed.

Dividend Sustainability

Dividend data were unreported, and the company recorded a net loss; thus, payout metrics are not applicable. Given negative earnings and the company’s apparent focus on development and commercialization, internal capacity to pay dividends would depend entirely on cash reserves rather than recurring FCF. With OCF and FCF unreported, we cannot assert coverage. Policy outlook likely prioritizes reinvestment and cash preservation over distributions until profitability is achieved, but no explicit guidance was provided.

Risk Assessment

Business Risks:

• Commercialization risk for digital therapeutics (adoption by providers and patients is uncertain).
• Regulatory approval and reimbursement risk in Japan (PMDA) and potentially overseas markets.
• Execution risk in scaling sales and marketing from a development-stage base.
• Dependence on limited product pipeline milestones to trigger revenue inflection.
• Technology and IP risk given software-based therapeutic modalities.

Financial Risks:

• Continued operating losses with unreported OCF, creating uncertainty on cash burn trajectory.
• Potential future equity financing and dilution if losses widen or timelines extend, despite current cash buffer.
• Concentration of assets in cash and deposits (counterparty and yield risk).
• Negative retained earnings (-12.18), limiting distributable surplus under certain corporate law constraints.

Key Concerns:

• Revenue, gross profit, and cash flow statements were unreported, limiting visibility on underlying momentum.
• Small absolute scale increases sensitivity to delays in approvals or contracts.
• Minor discrepancy between PBT (-1.63) and NI (-1.20) not reconciled by reported tax (0.00), implying unreported below-the-line items or rounding.

Investment Implications

Key Takeaways:

• Loss-making quarter with operating income -1.33 and net income -1.20 (100M JPY).
• Exceptionally strong liquidity: current ratio 35.4x; cash 43.98 (100M JPY) comprising most assets.
• Minimal leverage: D/E ~0.03x; implied equity ratio ~97%.
• Cost base (SG&A 1.21) drives losses amid unreported revenue; operating leverage remains negative.
• Earnings quality cannot be assessed due to unreported OCF; runway appears multi-year at current burn levels.

Metrics to Watch:

• Revenue disclosure and growth trajectory in upcoming quarters.
• Operating cash flow and free cash flow to validate cash burn.
• SG&A trend versus revenue (operating leverage inflection).
• Regulatory and reimbursement milestones for key products.
• Any changes in capital structure (debt introduction or equity issuance).

Relative Positioning: Within Japanese early-stage digital health peers, the company exhibits above-average liquidity and low leverage, but profitability and cash flow visibility lag due to limited disclosures; near-term performance is more dependent on milestone execution than on incremental operating efficiency.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis