NANO MRNA Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥41M
• Operating Income: ¥-399M
• Net Income: ¥-518M
• EPS: ¥-6.20

Income Statement

Balance Sheet

Cash Flow Statement

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

NANO mRNA Co., Ltd. reported FY2026 Q2 consolidated results under JGAAP characterized by early-stage, R&D-led losses alongside a notable ramp in top-line activity. Revenue reached 41 million yen, up 433.8% year on year, indicating initial commercialization or collaboration traction, albeit from a small base. Gross profit was 6.29 million yen, implying a gross margin of 15.3%, which suggests limited scale efficiencies and/or a services/collaboration-heavy mix at this stage. Operating loss remained sizable at 399 million yen (flat YoY per disclosure), reflecting continued investment in pipeline development and platform capabilities typical of pre-approval biotech. Ordinary loss of 384 million yen slightly narrowed versus operating loss, implying modest positive net non-operating items (e.g., interest income), with no reported interest expense. Net loss was 440 million yen and EPS was -6.20, underscoring ongoing cash burn and the absence of near-term earnings visibility. On the balance sheet, total assets were 3.377 billion yen and total liabilities 1.257 billion yen, implying equity of 2.634 billion yen; this suggests an inferred equity ratio near the high 70% range despite a reported equity ratio of 0.0% (likely an unreported metric). Liquidity looks ample on reported ratios: current ratio 300.9% and quick ratio 300.9%, supported by 2.418 billion yen of working capital. Operating cash flow was negative 268 million yen, which is materially smaller in magnitude than the net loss, implying non-cash charges and/or favorable working capital effects; investing and financing cash flows were not reported. DuPont decomposition yields a net margin of -1,073%, asset turnover of 0.012x, and financial leverage of 1.28x, producing a calculated ROE of -16.7%. The very low asset turnover reflects the early commercialization phase, while leverage remains conservative. Cash and cash equivalents were unreported; hence cash runway cannot be precisely assessed from the provided data. Dividend per share was zero, consistent with development-stage capital allocation priorities. Data contain unreported items (e.g., cash, investing/financing CF, interest expense) and some line-item presentation peculiarities; conclusions are drawn from available non-zero data and internally consistent derived ratios. Overall, the company exhibits typical early-stage biotech financials: rising activity but sustained operating losses, strong liquidity buffers, and moderate leverage.

Profitability Analysis

ROE decomposition points to earnings drag dominated by extreme negative margins rather than leverage or asset intensity: Net margin -1,073.17% × asset turnover 0.012 × financial leverage 1.28 ≈ ROE -16.70%. The negative margin stems from heavy R&D and SG&A investment relative to a still nascent revenue base. Gross margin at 15.3% is subdued, indicative of either early-stage service/collaboration revenue or low scale manufacturing; the margin profile may improve with scale or higher-value milestones/licensing fees. EBITDA of -398.984 million yen and an EBITDA margin of -973.1% reflect substantial operating losses before D&A, consistent with a research-centric cost structure. Operating leverage remains unfavorable in the short term as fixed R&D/overhead dominate; however, the sharp YoY revenue growth demonstrates potential for leverage if revenue scales faster than opex. Ordinary loss is slightly better than operating loss, suggesting minor positive non-operating contributions (e.g., interest income on cash). Interest coverage is not meaningful given unreported interest expense and negative EBIT; funding reliance is primarily on equity. Overall profitability will be driven by pipeline milestones, licensing economics, and eventual product sales; near-term profitability remains unlikely without material revenue inflection.

Growth Assessment

Revenue of 41 million yen grew 433.8% YoY, signaling early customer or partner traction, though the absolute level remains small and potentially volatile. The low gross margin suggests current revenues may be proof-of-concept services, grants, or early collaboration structures rather than high-margin product sales; sustainability depends on converting to larger, recurring milestones or product revenue. Operating income remained -399 million yen (flat YoY), implying that opex growth roughly tracked revenue, or that cost controls offset higher activity; however, profitability inflection is not yet visible. Ordinary income improvements relative to operating point to small positive financial items; these are unlikely to be a structural growth driver. Given sector norms, growth visibility hinges on clinical progress, regulatory milestones, and business development (BD) deals; individual quarters can be lumpy. The current asset turnover of 0.012x underscores early-stage scale; meaningful improvement would come with larger contracts, milestone receipts, or product launches. Outlook: cautiously constructive on activity levels given the revenue surge, but profit quality remains weak until gross margin and scale improve. Key swing factors include partnership expansions, grant funding, and advancement of core mRNA programs.

Financial Health

Liquidity appears strong: current ratio 300.9% and quick ratio 300.9%, with working capital of 2.418 billion yen, indicating ample near-term coverage of obligations. Total assets are 3.377 billion yen and liabilities 1.257 billion yen, implying a solid equity buffer of 2.634 billion yen. While the reported equity ratio is 0.0%, an inferred equity ratio from balances is approximately 78% (2.634 / 3.377), suggesting a conservative capital structure. Debt-to-equity is 0.48x, indicating modest leverage relative to equity; interest expense was unreported, and ordinary results suggest any net debt burden is limited. Solvency risk appears contained in the near term due to the sizeable equity cushion and working capital. However, sustained operating losses imply dependence on capital markets or partnering inflows over time. Without reported cash and cash equivalents, precise assessment of runway and liquidity buffers cannot be completed; conclusions rely on working capital as a proxy.

Cash Flow Quality

Operating cash flow was -268.192 million yen versus a net loss of -440 million yen, yielding an OCF/NI ratio of 0.61; this indicates losses are partly non-cash and/or working capital favorable, which modestly improves cash burn quality. Depreciation and amortization were limited (16 million yen), consistent with a light-asset R&D model. Free cash flow is reported as 0 due to unreported investing cash flows; true FCF is likely negative given negative OCF. Working capital dynamics appear supportive in the period, but sustainability is uncertain given small revenue base and potential milestone timing variability. Investing and financing cash flows were unreported, so capital expenditures, intangibles spend, and equity financing cannot be assessed from this dataset. Overall, earnings quality is typical of development-stage biotech: accounting losses exceed cash burn due to non-cash items and accruals, but burn remains material.

Dividend Sustainability

The company reported an annual DPS of 0.00 with a payout ratio of 0.0%, which is appropriate for an R&D-intensive, loss-making stage. With negative operating cash flow and unreported FCF, any distribution would be economically unjustified; preservation of cash for pipeline and platform investment remains the priority. FCF coverage of dividends is reported as 0.00x, but this reflects unreported investing flows rather than true capacity; in any case, cash burn precludes distributions. Policy outlook is likely to remain retention-focused until the firm achieves sustainable positive cash flow and earnings, potentially post-commercialization or with substantial recurring milestone income.

Risk Assessment

Business Risks:

• Clinical and regulatory risk inherent to mRNA therapeutic development and platform validation.
• Revenue concentration and lumpy milestone timing given small, fast-growing but nascent revenue base.
• Gross margin uncertainty due to early-stage revenue mix (services/collaborations vs. products).
• Execution risk in scaling manufacturing, CMC, and quality systems for mRNA products.
• Competitive intensity in mRNA and RNA therapeutics from global incumbents and well-funded peers.
• Partner dependency risk if collaborations drive near-term revenue.

Financial Risks:

• Ongoing operating losses (-399 million yen operating loss) necessitate continued external funding or BD inflows.
• Cash runway visibility limited due to unreported cash balance and investing/financing cash flows.
• Potential dilution from future equity financing typical for development-stage biotech.
• Foreign exchange exposure if materials, equipment, or partnerships are USD/EUR-linked.
• Limited interest coverage and reliance on equity despite modest reported leverage.

Key Concerns:

• Sustained negative margins (EBITDA margin -973.1%) and very low asset turnover (0.012x).
• Unreported cash balance complicates runway assessment despite strong working capital.
• Gross margin at 15.3% suggests limited scale and/or non-product revenue mix.
• Dependence on milestone and partnership economics to bridge to commercialization.

Investment Implications

Key Takeaways:

• Top-line is accelerating (+433.8% YoY) but remains small in absolute terms.
• Profitability is dominated by R&D-led losses; ROE of -16.7% is margin-driven, not leverage-driven.
• Liquidity appears ample (current ratio ~301%, working capital 2.418 billion yen) with conservative leverage.
• Cash burn is material (OCF -268 million yen) but somewhat mitigated versus the accounting loss.
• Data gaps (cash balance, investing/financing CF) limit precision of cash runway and capex needs.
• Margin and operating leverage improvements hinge on mix shift toward higher-value milestones/products.

Metrics to Watch:

• Cash and cash equivalents and quarterly operating cash burn/runway.
• R&D and SG&A trajectory versus revenue growth (operating leverage).
• Gross margin progression and revenue mix (product vs. services/collaboration).
• New partnerships, milestone receipts, and licensing terms.
• Equity raises or non-dilutive funding (grants, upfronts).
• Clinical pipeline milestones and regulatory progress impacting valuation and timing.

Relative Positioning: Relative to TSE-listed biotech peers, the company appears typical of an early-stage, pre-profit mRNA developer: modest but rapidly growing revenues, substantial R&D spending, negative EBITDA, and a conservative balance sheet with strong liquidity. Progress will be judged by BD momentum, margin expansion, and clinical milestones rather than near-term earnings.

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
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