BrightPath Biotherapeutics Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥0
• Operating Income: ¥-464M
• Net Income: ¥-462M
• EPS: ¥-4.53

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

BrightPath Biopharma (45940) reported FY2026 Q2 standalone results under JGAAP that reflect its early-stage biotech profile: no recognized product revenue and a sizable operating loss driven by R&D and SG&A. Operating income was a loss of ¥464 million, broadly in line with the prior year per the provided YoY indication, and ordinary loss was ¥460 million, implying minimal non-operating impacts. Net loss totaled ¥462 million (EPS: -¥4.53), with income tax expense recorded at ¥0.95 million, consistent with a loss-making position. Despite reported revenue being zero, a small gross profit of ¥42 thousand and cost of sales of ¥14 thousand were recorded; in biotech, such small amounts may reflect grants, service income, or reclassifications rather than recurring commercial revenues. Cash flow from operations was an outflow of ¥521 million in the half, closely tracking the income statement loss magnitude, indicating that losses are largely cash-consumptive with limited non-cash add-backs disclosed. Financing inflows of ¥1,003 million suggest equity financing to support the burn, common for pre-revenue R&D companies. The balance sheet shows total assets of ¥1,697 million and liabilities of ¥196 million, implying a low leverage profile and ample net cash position; current assets of ¥1,071 million versus current liabilities of ¥132 million yield a very strong current ratio. The provided equity ratio is shown as 0.0% (likely undisclosed), but assets versus liabilities imply equity around ¥1.5 billion, consistent with a high equity buffer. DuPont components provided (net margin 0%, asset turnover 0.000, leverage 1.11) are not economically meaningful given zero revenue reporting and missing line items; the economic reality is a negative ROE due to losses, modest leverage, and negligible turnover. Working capital was positive at ¥940 million, supporting liquidity during ongoing trials and development. Free cash flow was not reported (shown as 0), but with negative OCF and no investing CF disclosed, FCF is effectively negative. With no dividends (DPS ¥0), capital allocation is focused on funding R&D, and continued access to equity markets remains important. Overall, BrightPath remains in an investment phase with sufficient near-term liquidity from recent financing, but sustainability hinges on pipeline progress and additional non-dilutive funding or partnerships. Data limitations are material: several key items are unreported (cash balance, depreciation, revenue granularity, average equity), so conclusions rely on available non-zero figures and reasonable biotech-sector context.

Profitability Analysis

ROE_decomposition: Reported DuPont shows net margin 0.00%, asset turnover 0.000, and leverage 1.11, resulting in a calculated ROE of 0.00%. These are not representative given zero revenue reporting and missing elements. Economically, ROE is negative due to a ¥462 million net loss on an equity base roughly implied at ~¥1.5 billion, suggesting an annualized ROE in the low double-digit negative percent range if losses persist. margin_quality: Operating loss of ¥464 million with negligible gross-level activity indicates expenses are primarily R&D/SG&A. Tax expense is minimal, and ordinary loss closely matches operating loss, implying limited reliance on non-operating gains. The small gross profit and cost of sales are not indicative of a recurring margin structure. operating_leverage: Given absent revenue and fixed R&D costs, operating leverage is currently unfavorable: incremental costs do not translate into revenues. If milestone or licensing income materializes, losses could narrow quickly, but current data show no scale benefits yet.

Growth Assessment

revenue_sustainability: Revenue is reported as ¥0 (-40% YoY), indicating no recurring commercial revenue base. Any future revenue will likely depend on milestone/license deals or eventual product approvals. profit_quality: Net loss (¥462 million) tracks closely with operating loss, and OCF is slightly more negative than net loss, suggesting limited non-cash items and no one-offs evident in the period. Profitability hinges on R&D outcomes rather than operational efficiency at this stage. outlook: Near-term topline catalysts would be R&D milestones or collaborations. Expense run-rate suggests annualized operating burn around ¥0.9–1.1 billion absent changes. Without product launches, growth will be event-driven rather than linear.

Financial Health

liquidity: Current assets ¥1,071 million against current liabilities ¥132 million produce a current ratio of 813.7% and quick ratio equal to the current ratio (no inventories reported). Working capital stands at ¥940 million, providing near-term liquidity for operations. solvency: Total liabilities ¥196 million versus assets ¥1,697 million implies low leverage. Debt-to-equity is shown at 0.13x, consistent with a modest liability base and predominantly equity funding. The reported equity ratio is undisclosed (0.0% placeholder), but implied equity is strong. capital_structure: Financing CF of ¥1,003 million in the half indicates fresh equity capital or similar financing. With ordinary loss close to operating loss and interest expense unreported, financial obligations appear light.

Cash Flow Quality

earnings_quality: OCF of -¥521 million versus net loss of -¥462 million yields an OCF/NI ratio of 1.13 (more negative cash flow than accounting loss), indicating limited non-cash charges (depreciation unreported). Losses are largely cash in nature. FCF_analysis: Investing CF is unreported (0). With negative OCF and no disclosed capex, effective FCF is negative. Absent large capital investments, cash burn is driven by operating activities. working_capital: Positive working capital of ¥940 million supports operations; however, without detailed receivables/payables breakdown, the period-to-period swing is unclear. The cash runway, using current assets as a proxy and the current burn rate, appears to cover roughly 1–2 halves (about 6–12 months), subject to the composition of current assets and spending cadence.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0 with a reported payout ratio of 0.0%. This is appropriate given persistent losses and R&D funding needs. FCF_coverage: Negative FCF provides no coverage for distributions; any dividends would need external funding and are not indicated by policy or practice. policy_outlook: In line with peers, policy will likely prioritize R&D investment and liquidity preservation until commercialization or sustainable licensing income emerges.

Risk Assessment

Business Risks:

• Clinical development and regulatory approval risk for pipeline assets
• Dependence on milestone/licensing income in absence of product revenue
• Competition from global biotech/pharma in target indications
• Execution risk in partnering and trial timelines
• Concentration risk if pipeline is narrow or focused on a limited set of targets

Financial Risks:

• Ongoing cash burn requiring periodic equity financing and potential dilution
• Limited non-operating income to offset operating losses
• Potential volatility in working capital without recurring revenue
• Sensitivity to capital market conditions for fundraising

Key Concerns:

• Sustainability of liquidity beyond the next 6–12 months without additional funding
• Lack of disclosed cash and cash equivalents detail
• Unreported line items (e.g., depreciation, cash) impede precise runway analysis
• Zero revenue reporting limits visibility on commercial traction

Investment Implications

Key Takeaways:

• Pre-revenue biotech profile with operating loss of ¥464 million in H1 FY2026
• OCF burn of ¥521 million largely mirrors accounting losses, indicating cash-intensive operations
• Recent financing inflow of ¥1,003 million bolsters near-term liquidity
• Strong current ratio (813.7%) and positive working capital of ¥940 million
• Leverage remains low; ordinary loss closely tracks operating loss
• Future inflection depends on R&D milestones or partnerships rather than core operations

Metrics to Watch:

• Period-end cash and cash equivalents balance and monthly burn rate
• R&D expense trend and trial milestones
• Business development updates (licensing, co-development, grants)
• Equity financing cadence and dilution
• Any initiation of revenue recognition (milestones, services) and gross margin signals

Relative Positioning: Consistent with Japan micro-cap biotech peers: pre-commercial, equity-funded, low leverage, and milestone-driven catalysts; liquidity appears adequate short term, with medium-term funding dependent on pipeline progress and capital market access.

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