RIBOMIC Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥2M
• Operating Income: ¥-538M
• Net Income: ¥-514M
• EPS: ¥-11.19

Income Statement

Balance Sheet

Cash Flow Statement

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

Ribomic (45910) reported FY2026 Q2 standalone results under JGAAP featuring very limited revenue (2.0 million yen, flat YoY) and a sizable operating loss of 538 million yen, resulting in a net loss of 514 million yen (EPS -11.19). The business model continues to resemble a pre-commercial/largely R&D-driven profile, with minimal top-line recognized and cost absorption driving losses. Ordinary loss (-513 million yen) was narrower than operating loss, implying positive net non-operating items of roughly 25 million yen, which partially cushioned operating weakness. Depreciation was modest at 0.193 million yen, indicating a largely intangible or OPEX-heavy cost structure rather than asset-intensive operations. DuPont decomposition highlights a severe net margin of -25,700% on negligible sales, asset turnover of 0.001, and low financial leverage (1.04x), culminating in a reported ROE of -15.88%. Liquidity looks robust on headline ratios: current assets of 3,147.5 million yen versus current liabilities of 142.2 million yen yield a current ratio of approximately 2,213%, with working capital of 3,005.3 million yen. Total liabilities are modest (142.2 million yen) against equity of 3,236.0 million yen, corresponding to a low debt-to-equity of about 0.04x. Operating cash outflow was 475.3 million yen in the period, largely aligning with the accounting loss (OCF/NI ~0.92), suggesting losses are cash-consumptive rather than heavily driven by non-cash items. Financing cash inflow of 372.7 million yen indicates ongoing external funding support (likely equity-related or subsidies), which partially offset the operating burn. Investing cash flow, cash and equivalents, and several line items were not disclosed in this dataset (zeros represent unreported items), limiting balance sheet granularity and runway precision. Nonetheless, with sizable current assets relative to burn, near-term liquidity risk appears contained, assuming a meaningful portion of current assets is cash or near-cash. The absence of gross profit disclosure limits margin analysis; however, the scale of losses and negligible revenue imply that commercialization or monetization milestones have yet to materially contribute. Dividend payments are absent, which is appropriate given continued losses and reinvestment needs. Overall, results underscore a research-stage profile: minimal revenue, high fixed cost absorption, reliance on financing inflows, and ample but finite liquidity.

Profitability Analysis

ROE of -15.88% is driven by: (1) an extremely negative net margin (-25,700%) due to a 514 million yen net loss on 2 million yen revenue, (2) very low asset turnover (~0.001; revenue of 2.0 million yen on assets of 3,367.0 million yen), and (3) low financial leverage (1.04x). Operating income of -538 million yen vs. ordinary income of -513 million yen indicates positive net non-operating contributions (~25 million yen). With gross profit unreported, margin quality cannot be dissected between COGS and OPEX; however, the delta between tiny revenue and large operating loss points to R&D/S,G&A as the primary loss drivers. Depreciation is minimal (0.193 million yen), so EBITDA (-537.8 million yen) is essentially in line with operating loss, confirming low non-cash burden and predominantly cash OPEX. Operating leverage is adverse at current scale: a largely fixed cost base on minimal revenue amplifies losses; revenue must scale materially (e.g., milestones/licensing/initial sales) to swing to breakeven. Interest expense was unreported, and the interest coverage metric is not meaningful here given losses and the absence of financial debt costs in the data.

Growth Assessment

Revenue was 2.0 million yen and flat YoY, indicating no visible commercialization inflection in the period. Given the negligible top line and significant operating loss, current growth is not revenue-led but rather investment-led, pending future milestones or partnerships. Profit trends are negative at the operating level, though ordinary loss being narrower than operating loss suggests recurring non-operating support. With D&A negligible, profit improvement will likely require either cost containment or step-change revenue from R&D outcomes (e.g., licensing or milestone receipts). Sustainability of revenue at current levels is low; revenue volatility is likely given a milestone-driven model. Without disclosed backlog or pipeline timing here, near-term outlook depends on external catalysts (clinical progress, partner deals, grants). Absent such catalysts, losses are expected to persist. The framework suggests that once revenue starts to scale, the high operating leverage could translate small revenue gains into disproportionate operating improvement.

Financial Health

Total assets are 3,367.0 million yen; equity is 3,236.0 million yen; liabilities are modest at 142.2 million yen, yielding a low debt-to-equity of ~0.04x. Current assets of 3,147.5 million yen versus current liabilities of 142.2 million yen produce a very high current ratio (~2,213%) and substantial working capital (3,005.3 million yen). The equity ratio was not disclosed in this dataset, but the absolute levels of equity vs. liabilities indicate a conservative capital structure. Interest expense was unreported, and there is no indication of material interest-bearing debt. Liquidity quality cannot be precisely assessed because cash and equivalents line was not disclosed; however, the magnitude of current assets suggests a strong liquidity buffer. Using operating cash burn of 475.3 million yen per half-year as a proxy, current assets could support several periods of operations, contingent on the composition of current assets and ongoing financing access.

Cash Flow Quality

Operating cash flow of -475.3 million yen is close to the net loss of -514.0 million yen (OCF/NI ~0.92), implying limited non-cash distortion and that accounting losses largely convert to cash outflows. Depreciation is minimal (0.193 million yen), and investing cash flow was not disclosed in this dataset; hence free cash flow cannot be reliably computed despite a displayed value of 0. Financing inflow of 372.7 million yen partially bridges the operating cash deficit, consistent with a development-stage reliance on external funding. Working capital movements are not disclosed at a line-item level here, but given the OCF magnitude, cash burn appears driven by operating expenses rather than large inventory or receivable swings. Earnings quality, in the sense of cash conversion, is consistent: losses are cash losses; future improvement depends on revenue recognition or cost discipline.

Dividend Sustainability

No dividends were reported for the period, which aligns with a loss-making, R&D-focused profile and the need to preserve cash. Payout ratio metrics are not meaningful with negative earnings. Given negative OCF and reliance on financing inflows, dividends are not sustainable in the near term. Policy-wise, the company is likely to prioritize funding its pipeline and maintaining liquidity over shareholder distributions until profitability and positive free cash flow are established.

Risk Assessment

Business Risks:

• Commercialization risk: revenue remains negligible (2.0 million yen) and flat YoY, highlighting dependence on future milestones or licensing.
• R&D execution and clinical/regulatory timing risk that could delay monetization.
• Customer/concentration risk typical of milestone/licensing models, where receipts can be lumpy.
• Competitive risk in target indications and modalities (aptamer/biotech segments).
• Partnering risk: reliance on collaborations for development funding and commercialization.

Financial Risks:

• Cash burn of 475.3 million yen in OCF for the half-year necessitates continued access to financing absent revenue inflection.
• Runway uncertainty due to undisclosed cash and equivalents and investing cash flows.
• Dilution risk from future equity raises, given low leverage and reliance on financing CF (372.7 million yen inflow).
• Potential FX and funding market volatility affecting capital access and non-operating income.

Key Concerns:

• Sustained operating losses (-538 million yen) with negligible revenue base.
• Limited disclosure on cash balance and investing cash flows, constraining runway analysis.
• High operating leverage implies sensitivity to timing of revenue milestones.

Investment Implications

Key Takeaways:

• ROE at -15.88% reflects severe margin pressure and minimal asset utilization, not leverage.
• Liquidity is ample relative to current liabilities (current ratio ~2,213%) with low debt (D/E ~0.04x), mitigating near-term solvency risk.
• Cash burn is substantial (OCF -475.3 million yen) and largely mirrors losses; external financing (372.7 million yen inflow) remains important.
• Non-operating items slightly offset operating losses (~+25 million yen), but do not change the core earnings picture.
• Revenue needs to scale materially to leverage the fixed cost base and approach breakeven.

Metrics to Watch:

• Cash and equivalents and composition of current assets (to refine runway view).
• Quarterly OCF burn rate and guidance on operating expense trajectory.
• Pipeline and partnership milestones that could trigger licensing/milestone revenue.
• Any disclosure on backlog/contracted milestones and timing.
• Equity financing activities and potential dilution.

Relative Positioning: Within Japan’s pre-commercial biotech cohort, Ribomic appears typical: low revenue recognition, sizeable operating losses, strong equity-backed balance sheet, and reliance on milestone/financing inflows; differentiation will hinge on near-term clinical/partnering catalysts and the ability to convert R&D progress into monetizable milestones.

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