AnGes,Inc. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥646M
• Operating Income: ¥-3.54B
• Net Income: ¥-7.16B
• EPS: ¥-13.63

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

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

AnGes Inc. (4563) reported FY2025 Q3 (cumulative) consolidated results under JGAAP marked by continued substantial operating losses alongside modest top-line growth. Revenue was 646 million yen, up 37.0% year over year, suggesting progress in licensing/milestone or limited product-related income consistent with a development-stage biotech profile. Cost of sales was 285 million yen; while gross profit was not disclosed in XBRL, the implied gross profit is approximately 361 million yen, indicating an implied gross margin near 55.8%. Operating income remained deeply negative at -3,542 million yen, essentially flat year over year despite the revenue growth, indicating that fixed costs (notably R&D and possibly SG&A) continue to dominate the P&L. Ordinary income deteriorated to -4,615 million yen, reflecting non-operating losses on top of the operating deficit. Net income was -4,688 million yen (EPS -13.63), with an unusual 91 million yen tax expense despite losses, likely due to non-deductible items or valuation allowance adjustments. The DuPont bridge highlights a very weak net margin of -725.7%, low asset turnover of 0.098x, and moderate financial leverage (assets/equity) of 1.58x, producing a calculated ROE of -112.4%. The balance sheet shows total assets of 6,612 million yen and total liabilities of 2,512 million yen, leaving total equity at 4,172 million yen; although the equity ratio was not disclosed, the implied equity ratio is about 63.1%. Liquidity looks adequate in the near term with current assets of 3,543 million yen versus current liabilities of 2,313 million yen, yielding a current ratio of 153% and working capital of 1,229 million yen. Cash flow statements were not disclosed, limiting direct assessment of cash burn, working capital dynamics, and free cash flow. No dividends were paid (DPS 0), which aligns with loss-making status and conservation of cash. Overall profitability remains highly negative with a cost base outstripping small revenue gains, but the stable operating loss YoY against higher revenue hints at marginal operating leverage improvement. Solvency appears acceptable given positive equity and a moderate liabilities-to-equity position, but sustained losses imply an ongoing need for external funding over time. With many items unreported (gross profit, EBITDA, cash flows, cash balance), conclusions must be qualified; still, the available data confirm a high-burn, development-stage financial profile. Key focuses going forward are cash runway, R&D progress/milestones that could catalyze revenue, and financing plans to bridge ongoing losses.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: -725.7
• asset_turnover: 0.098
• financial_leverage: 1.58
• calculated_ROE: -112.37
• interpretation: ROE is deeply negative, driven primarily by an extremely weak net margin and low asset turnover typical of development-stage biotechs; leverage is not the primary driver of ROE. margin_quality: Implied gross margin is approximately 55.8% (revenue 646m minus cost of sales 285m), but gross profit was not disclosed. Operating margin is approximately -548% and net margin -726%, reflecting heavy R&D/SG&A burden relative to a small revenue base. A 91m yen tax expense despite losses suggests non-deductible items or deferred tax valuation adjustments, which depresses net margin further. operating_leverage: Revenue grew 37% YoY while operating loss was flat YoY, indicating slight operating leverage benefits; however, the absolute cost base still overwhelms revenue, and sustained operating losses persist.

Growth Assessment

revenue_sustainability: Top-line growth of 37% YoY is encouraging but remains from a low base and likely tied to milestone/licensing variability rather than broad-based commercial sales. Sustainability will depend on pipeline progress, partnerships, and regulatory milestones. profit_quality: Losses at operating and net levels indicate limited profit quality; absence of disclosed gross profit and EBITDA complicates assessment. The gap between operating and ordinary losses implies non-operating headwinds. outlook: Near-term outlook hinges on R&D catalysts that could drive milestone revenue and on cost discipline. Without commercial-scale revenue, profitability is unlikely in the short term; any reduction in losses would likely come from opex control or one-off revenues.

Financial Health

liquidity: Current assets of 3,542.6m yen and current liabilities of 2,313.3m yen yield a current ratio of 153% and working capital of 1,229.3m yen, providing a short-term liquidity buffer. Quick ratio equals current ratio as inventories were not disclosed. solvency: Total liabilities are 2,512.0m yen against total equity of 4,172.0m yen (liabilities/equity ~0.60x). Implied equity ratio is approximately 63.1% (equity/assets), indicating adequate capitalization despite ongoing losses. capital_structure: Financial leverage (assets/equity) is 1.58x, conservative for a biotech. Interest expense was not reported, suggesting limited financial debt or low borrowing costs; financing likely relies more on equity issuance.

Cash Flow Quality

earnings_quality: With operating and net losses, earnings are driven by R&D and SG&A rather than core commercial activity. The 91m yen tax expense in a loss year suggests non-cash tax items, reducing the informativeness of net income for cash flow. FCF_analysis: Operating, investing, and financing cash flows were not disclosed, and cash balance was not reported. As such, free cash flow cannot be calculated from reported figures; given the operating loss scale, underlying FCF is likely negative. working_capital: Working capital is positive at 1,229.3m yen, supporting near-term obligations. Without cash flow and receivables/payables detail, the timing and magnitude of working capital swings cannot be assessed.

Dividend Sustainability

payout_ratio_assessment: DPS is 0 and the payout ratio is 0%, appropriate given recurring net losses and the need to conserve cash for R&D. FCF_coverage: FCF coverage cannot be evaluated due to undisclosed cash flows; however, loss-making status implies dividends are not feasible near term. policy_outlook: Given the development-stage profile and funding requirements, a no-dividend stance is likely to persist until the company achieves sustainable profitability and positive free cash flow.

Risk Assessment

Business Risks:

• Clinical and regulatory risk inherent in biopharmaceutical R&D with binary outcomes.
• Revenue concentration risk on milestones/licensing rather than recurring product sales.
• Execution risk in advancing pipeline assets to approval and commercialization.
• Partnering risk and timing uncertainty of upfront/milestone receipts.
• Competitive risk from alternative therapies and evolving standards of care.

Financial Risks:

• Sustained operating cash burn necessitating periodic external financing.
• Potential equity dilution from future capital raises.
• Sensitivity to non-operating items that widen ordinary and net losses.
• Tax valuation allowances and non-deductible items impacting reported net income.
• Liquidity visibility constraints due to undisclosed cash flow and cash balance.

Key Concerns:

• Deep negative margins (operating margin ~ -548%, net margin ~ -726%) with limited revenue scale.
• Absence of disclosed cash flow data, obscuring cash runway and burn rate.
• Reliance on unpredictable milestone/licensing income to support operations.

Investment Implications

Key Takeaways:

• Revenue grew 37% YoY to 646m yen, but losses remain substantial at all levels.
• Implied gross margin is healthy (~56%), yet dwarfed by operating expenses.
• Operating loss held flat YoY despite higher revenue, implying slight operating leverage.
• Balance sheet shows moderate leverage and positive equity, offering some solvency cushion.
• Liquidity is adequate near term (current ratio 153%), but sustained burn implies future funding needs.
• Cash flow and cash position were not disclosed, limiting assessment of runway.
• No dividend, appropriately conserving cash for R&D.

Metrics to Watch:

• Cash and cash equivalents and quarterly operating cash burn once disclosed.
• R&D and SG&A trajectories relative to revenue growth.
• Pipeline milestones and partnership deals that could drive milestone/licensing revenue.
• Ordinary income drivers (non-operating gains/losses) and their volatility.
• Equity issuance or other financing activities and resultant dilution.
• Regulatory and clinical trial updates affecting commercialization timelines.

Relative Positioning: Relative to Japan-listed biotech peers, AnGes exhibits a typical development-stage profile: small, volatile revenues; high R&D-driven operating losses; moderate leverage; and dependence on external funding, with solvency currently supported by positive equity and a fair current ratio.

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