SUSMED,Inc. FY2026 Q1 earnings report and financial analysis
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About Quarterly Earnings Report Disclosures
| Item | Current | Prior | YoY % |
|---|---|---|---|
| SG&A Expenses | ¥121M | - | - |
| Operating Income | ¥-133M | ¥-161M | +17.4% |
| Non-operating Income | ¥5M | - | - |
| Non-operating Expenses | ¥7M | - | - |
| Ordinary Income | ¥-132M | ¥-163M | +19.0% |
| Income Tax Expense | ¥302,000 | - | - |
| Net Income | ¥-120M | ¥-163M | +26.4% |
| Basic EPS | ¥-7.17 | ¥-9.76 | +26.5% |
| Dividend Per Share | ¥0.00 | ¥0.00 | - |
| Item | Current End | Prior End | Change |
|---|---|---|---|
| Current Assets | ¥4.46B | - | - |
| Cash and Deposits | ¥4.40B | - | - |
| Non-current Assets | ¥40M | - | - |
| Property, Plant & Equipment | ¥0 | - | - |
| Intangible Assets | ¥16M | - | - |
| Item | Value |
|---|---|
| Current Ratio | 3543.5% |
| Quick Ratio | 3543.5% |
| Debt-to-Equity Ratio | 0.03x |
| Item | Value |
|---|---|
| Shares Outstanding (incl. Treasury) | 16.82M shares |
| Treasury Stock | 6K shares |
| Average Shares Outstanding | 16.82M shares |
| Book Value Per Share | ¥253.02 |
| Item | Amount |
|---|---|
| Q2 Dividend | ¥0.00 |
| Year-End Dividend | ¥0.00 |
| Item | Forecast |
|---|---|
| Dividend Per Share Forecast | ¥0.00 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
Analysis integrating XBRL data (GPT-5) and PDF earnings presentation (Claude)
SUSMED Inc. (42630) reported FY2026 Q1 standalone results under JGAAP with no revenue recognized and a continued operating loss profile. Operating income was -133,000,000 yen, ordinary income -132,000,000 yen, and net income -120,000,000 yen (EPS -7.17). The quarter appears pre-revenue, with zero gross profit and zero cost of sales disclosed, consistent with a company still in development/commercialization ramp. Liquidity is strong on disclosed figures: current assets of 4,462,629,000 yen versus current liabilities of 125,940,000 yen imply a current ratio of 3,543.5% and working capital of 4,336,689,000 yen. Balance sheet leverage is modest: total liabilities of 132,330,000 yen and total equity of 4,255,000,000 yen indicate low indebtedness (Debt-to-Equity 0.03x). There is a data inconsistency to note: current assets (4,462,629,000 yen) exceed total assets (4,376,000,000 yen), suggesting either classification timing differences or an unreported/non-updated total assets figure; we rely more on the internally consistent current assets and liabilities for liquidity analysis. Reported DuPont components (0% margin, 0x asset turnover, 1.03x leverage) and equity ratio (0.0%) appear system defaults/unreported rather than economic realities; given the net loss and positive equity, true ROE would be negative for the quarter. Using the disclosed equity, the indicative quarterly ROE is approximately -2.8% (-120,000,000 / 4,255,000,000), non-annualized. Cash flow statements were not disclosed (OCF/ICF/FCF shown as 0, which should be treated as unreported), limiting earnings quality and cash burn assessment; however, the large working capital buffer suggests a meaningful cash runway absent large capex or working capital swings. No dividends were paid (DPS 0.00) and, given the loss-making status and typical growth-company policy, distributions are unlikely near term. With no revenue recognized, the earnings trajectory will hinge on commercialization timing, regulatory milestones, and partnership/licensing income. Overall, the quarter reflects controlled operating losses, a very strong short-term liquidity position, minimal financial leverage, and significant reliance on future revenue catalysts to improve profitability metrics. Data limitations (notably undisclosed cash flow and several zero placeholders) constrain precision; conclusions therefore emphasize balance sheet strength and the need to monitor burn rate and monetization progress.
From Earnings Presentation: In the first quarter of FY2026 (ending June 2026), Susmed Inc. achieved multiple critical milestones toward commercialization, including obtaining partial approval for changes to manufacturing and marketing authorization for its insomnia disorder treatment app and submitting an application for insurance coverage, presenting results of a specific clinical study on SMD403 (tinnitus) at an academic conference and increasing milestones and royalties through an amended contract with Kyorin Pharmaceutical, and commencing provision of clinical trial systems for Heartseed's corporate-sponsored clinical trials. Business revenue was ¥45 million (equivalent to ¥44 million in the previous quarter), and operating loss was ¥133 million (improved by ¥19 million from ¥152 million in the previous quarter), with limited revenue growth but progress in cost control. The development pipeline maintains 12 programs, contract projects number 12, and R&D expenses were ¥54 million (78.2% of the previous quarter's ¥69 million), demonstrating controlled spending. The DTx Product Business recorded no revenue and a segment loss of ¥44 million, while the DTx Platform Business secured a stable revenue base with business revenue of ¥45 million and segment profit of ¥28 million. Key strategic initiatives include preparing for commercial launch of the insomnia disorder app following insurance listing, advancing multiple pipelines to next-stage trials, and accumulating operational track record for clinical trial systems. The company is steadily transitioning to a medium- to long-term commercialization phase through initiatives such as sales partnership planning with Shionogi & Co., Ltd. and regenerative medicine clinical trial support for Heartseed.
ROE decomposition (indicative): Net profit margin is not meaningful due to zero revenue disclosure; instead, use net loss to equity as a proxy: approx. -2.8% for the quarter (-120m / 4,255m), non-annualized. Asset turnover appears as 0.000x due to no reported revenue; operationally, turnover should rise only once product revenues begin. Financial leverage is low at ~1.03x (Assets/Equity using reported totals), consistent with minimal liabilities. Margin quality: no gross margin disclosed; the operating loss of 133m yen is entirely from OPEX, indicating a fixed-cost heavy profile typical of R&D/regulatory and commercialization investments. Ordinary loss (-132m) is close to operating loss, implying immaterial non-operating items this quarter. Effective tax was minimal (income tax expense 302k yen) and not a driver. Operating leverage: with a largely fixed OPEX base and no COGS recognized, incremental revenue should translate with high flow-through once launched, but current negative operating leverage persists until commercialization. With no D&A or interest expense disclosed, the loss appears predominantly cash OPEX (subject to unreported CF detail), suggesting sensitivity of earnings to revenue inflection is high.
Revenue sustainability: none recognized this quarter; growth depends on initial commercialization, regulatory approvals, and/or partnership-driven income. Profit quality: losses are driven by operating expenses; absence of non-operating distortions (ordinary loss near operating loss) supports that the earnings profile is operational. Outlook: near-term results will likely remain loss-making until revenue starts; once initial contracts or reimbursable digital therapeutics sales begin, a steep improvement in operating margin is plausible given likely low COGS. Catalysts to watch include regulatory approvals, payer adoption/reimbursement decisions, hospital/clinic onboarding, and platform partnerships/licensing. Given the strong working capital, the company appears positioned to fund near-term growth initiatives without heavy reliance on debt. YoY growth indicators are unreported (0.0% placeholders), so we cannot benchmark trajectory; progress should be evaluated via sequential operating loss trend and disclosed order/backlog metrics when available.
Liquidity: current assets 4,462,629,000 yen vs current liabilities 125,940,000 yen yields a current ratio of 35.4x and working capital of 4,336,689,000 yen, indicating ample near-term coverage. Quick ratio is reported equal to current ratio, implying inventories are negligible or unreported; consistent with a software/DTx model. Solvency: total liabilities 132,330,000 yen vs equity 4,255,000,000 yen implies low leverage (Debt-to-Equity 0.03x) and financial flexibility. Capital structure: largely equity-funded, with minimal interest-bearing debt (interest expense reported as 0, likely not disclosed). Note the inconsistency that current assets exceed total assets; this suggests the total assets line may be outdated or a reporting artifact. For prudence, liquidity conclusions rely on the internally consistent current assets and liabilities and the very low liabilities-to-assets ratio.
Earnings quality: with no revenue and an operating loss of 133m yen, earnings are driven by OPEX; absent D&A and interest disclosures, losses likely reflect cash operating spend, but CF statements were not disclosed (OCF/ICF/FCF shown as 0 placeholders). Free cash flow: not derivable due to missing OCF and capex; however, low D&A and the business model suggest limited capex intensity. Working capital: large positive working capital (4.34b yen) indicates a strong buffer; changes in receivables/payables are unknown due to unreported CF detail. OCF/Net Income ratio is shown as 0.00 but should be treated as not available. Overall, cash burn cannot be quantified from this dataset; monitoring quarterly cash and deposits and OCF when disclosed will be key to runway analysis.
No dividends were declared (DPS 0.00) and payout metrics are not applicable given net losses and early-stage commercialization. With negative earnings and absent positive free cash flow disclosure, dividend capacity is effectively constrained. The balance sheet is equity-heavy and liquid, but capital is more likely to be allocated to growth and regulatory/commercial execution. Policy outlook: for a pre-revenue, loss-making company, a no-dividend stance is typical until sustainable profitability and FCF are achieved.
Key strategic initiatives for this fiscal year include: (1) Commercial launch of insomnia disorder treatment app (market introduction through collaboration with Shionogi & Co., Ltd. following insurance listing), (2) Development progress of pipeline (initiating next trials for SMD201 chronic kidney disease and SMD105 post-breast cancer resection pain, publishing specific clinical study results for SMD403 tinnitus, completing specific clinical research for SMD106 premenstrual syndrome), and (3) Accumulating operational track record for clinical trial systems (expanding provision to Heartseed and others). The insomnia disorder app has completed submission of the insurance coverage application, and upon realization of insurance listing following deliberation on drug pricing and insurance reimbursement points at Chuikyo (Central Social Insurance Medical Council), full-scale commercial launch utilizing Shionogi's sales network is expected. According to the company's estimates, approximately 5.9 million existing insomnia treatment patients × 17% (approximately 1 million) × assumed prescription unit price of ¥19,200 = approximately ¥19.2 billion, plus approximately 4.7 million untreated patients × 24% (approximately 1.13 million) × ¥19,200 = approximately ¥21.6 billion, totaling SAM of over ¥40 billion (calculated from physician survey N=387). In the pipeline, SMD201 (chronic kidney disease) and SMD105 (post-breast cancer resection pain) are planned to advance to next trials (exploratory or confirmatory), and SMD403 (tinnitus) has seen expanded company role and increased milestones and royalties agreed through contract revision with Kyorin Pharmaceutical, expanding upside potential upon commercialization. The clinical trial system is building track record through provision for Heartseed's regenerative medicine clinical trials, promoting monitoring workload and cost reduction effects through blockchain technology, and aiming to expand orders from pharmaceutical companies and CROs. The DTx Platform Business (clinical trial systems and machine learning analysis systems) secures a stable revenue base (¥45 million quarterly revenue and ¥28 million profit), partially offsetting losses in the DTx Product Business (therapeutic app development), a structure expected to continue. In the medium term, starting with insurance listing and commercial launch of the insomnia disorder app, sequential market entry of other pipeline products is expected to deliver profit improvement through high operating leverage.
The earnings presentation materials do not disclose full-year financial guidance, and no specific revenue or profit guidance for this fiscal year is provided. Management emphasizes progress on key strategic initiatives (obtaining partial approval for insomnia disorder app and submitting insurance coverage application, publishing clinical study results for SMD403 and contract enhancement, commencing trial system provision to Heartseed), demonstrating a focus on achieving milestones toward commercialization. Regarding the insomnia disorder app, under the sales partnership agreement with Shionogi & Co., Ltd., various plans (marketing plan, medical plan, operational infrastructure) for post-insurance listing are under development, with the commercial launch timing dependent on insurance listing. R&D expenses show improved efficiency quarter-over-quarter (¥69 million → ¥54 million) and operating loss improved by ¥19 million, indicating a policy of continuing development investment while advancing cost management. The strategy of strengthening mid-term commercialization candidates through initiating next trials for multiple pipelines and completing clinical studies is suggested. On the financial front, with an equity ratio of approximately 97% and working capital of ¥4.337 billion providing a solid financial foundation, the company emphasizes low short-term fundraising pressure and room to continue growth investments.
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Relative Positioning: Relative to domestic pre-revenue digital health/therapeutics peers on the TSE Growth market, SUSMED shows stronger short-term liquidity and lower leverage but remains behind on profitability due to lack of recognized revenue; near-term performance hinges on execution of regulatory and commercialization milestones.
This analysis was auto-generated by AI. Please note the following:
| Total Assets | ¥4.38B | ¥4.50B | ¥-126M |
| Current Liabilities | ¥126M | - | - |
| Non-current Liabilities | ¥6M | - | - |
| Total Liabilities | ¥132M | - | - |
| Total Equity | ¥4.25B | ¥4.37B | ¥-115M |
| Capital Stock | ¥99M | - | - |
| Capital Surplus | ¥5.44B | - | - |
| Retained Earnings | ¥-1.22B | - | - |
| Treasury Stock | ¥-28,000 | - | - |
| Owners' Equity | ¥4.20B | ¥4.32B | ¥-121M |
| Working Capital | ¥4.34B | - | - |