StemRIM Inc. FY2026 Q1 Earnings Report

Financial Highlights

• Operating Income: ¥-541M
• Net Income: ¥-527M
• EPS: ¥-8.49

Income Statement

Balance Sheet

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

StemRIM (45990) reported a FY2026 Q1 standalone net loss of 5.27 (100M JPY), equivalent to approximately -527 million yen, translating to basic EPS of -8.49 yen. Operating income was -5.41, and ordinary income was -5.30, indicating that the quarter’s loss profile was primarily driven by core operating activities with only modest non-operating effects. Revenue, gross profit, and SG&A details were not disclosed, which constrains margin analysis and prevents calculation of most standard profitability ratios. Total assets stood at 70.81 with cash and deposits of 69.95, underscoring an asset base that is overwhelmingly cash-heavy. Total liabilities were very low at 2.04, leaving total equity at 68.17 and owners’ equity at 53.33; retained earnings were negative at -37.83, consistent with cumulative losses at a development-stage biotech. The implied financial leverage (assets/equity) is a modest 1.04x, signaling a conservative balance sheet. Liquidity is exceptionally strong: current assets of 73.25 against current liabilities of 0.88 yield a current ratio of roughly 83x and working capital of 72.37. With revenue unreported and the business model typical of clinical/development-stage biotech, earnings are likely to remain lumpy and largely driven by R&D progress and potential milestone/licensing income rather than recurring product sales. Cash holdings of roughly 7.0 billion yen compared to a quarterly operating loss of about 0.54 billion yen suggest a multi-year funding runway on a simple proxy basis, though actual cash burn is not disclosed and may differ from accounting losses. The absence of reported operating, investing, and financing cash flows limits a precise assessment of burn dynamics and free cash flow. Book value per share is 109.71 yen, supported by the large cash balance and minimal liabilities. The effective tax rate statistic is not meaningful given the quarterly loss and minimal tax line. Dividend data were not reported, and negative retained earnings indicate that shareholder returns via cash dividends are unlikely in the near term, consistent with reinvestment needs. Overall, the company is well-capitalized with minimal solvency risk, but profitability remains constrained pending clinical or partnering catalysts. Data limitations (notably revenue, cost details, and cash flow statements) mean conclusions rely heavily on the balance sheet and reported bottom-line loss.

Profitability Analysis

ROE_decomposition: - Net income: -5.27; Equity: 68.17. As a point-in-time indicator, quarterly ROE ≈ -7.7% for the quarter (annualized approximation would be considerably more negative), but true ROE is not reliably comparable due to missing revenue and margin data. Financial leverage is low at ~1.04x (Assets 70.81 / Equity 68.17). Net profit margin and asset turnover are not calculable due to unreported revenue and gross profit. margin_quality: Operating loss of -5.41 drove ordinary loss of -5.30, implying limited non-operating distortion this quarter. Gross profit and SG&A were unreported, preventing direct assessment of operating expense mix, R&D intensity, or underlying gross margin. Given the sector profile, losses are likely R&D- and SG&A-driven rather than gross margin compression. operating_leverage: Indeterminable from disclosed data. With revenue unreported and likely minimal/irregular in nature for a development-stage biotech, operating leverage benefits will depend on future milestone/licensing or product revenue inflection, which is not evidenced in this quarter’s disclosures.

Growth Assessment

revenue_sustainability: Unreported this quarter. For a clinical/development-stage biotech, revenue—if any—is typically milestone/licensing-driven and inherently volatile rather than recurring. No evidence this quarter to assess trend or sustainability. profit_quality: Ordinary loss (-5.30) closely tracks operating loss (-5.41), suggesting earnings quality is not materially affected by non-operating items this quarter. However, lack of revenue and cost breakdown prevents evaluation of recurring vs. one-off items. outlook: Near-term earnings are likely to remain negative until pipeline progress triggers milestones/licensing or commercialization. Balance sheet strength provides funding visibility to pursue development, but timing of revenue inflection remains uncertain given absent top-line disclosure.

Financial Health

liquidity: Current assets 73.25 vs. current liabilities 0.88 imply a current ratio of ~83.35x and working capital of 72.37. Cash and deposits are 69.95, covering total liabilities (~2.04) by ~34x, indicating very strong near-term liquidity. solvency: Total liabilities 2.04 vs. equity 68.17 point to a conservative capital structure. Estimated equity ratio (equity/total assets) is ~96% (company’s equity ratio was unreported). Financial leverage is low at ~1.04x, implying low insolvency risk. capital_structure: Owners’ equity 53.33 includes capital surplus of 96.35 and retained earnings of -37.83, with additional components implied to reconcile to total equity 68.17. No interest-bearing debt was reported (specific debt line items were unreported), and the reported debt-to-equity ratio proxy is ~0.03x, consistent with minimal leverage.

Cash Flow Quality

earnings_quality: Cash flow statements were unreported; thus, OCF and FCF cannot be compared to net income. The proximity of operating and ordinary losses suggests limited reliance on non-operating gains to support earnings. FCF_analysis: Not calculable due to unreported OCF and capex. With cash totaling ~69.95 and a quarterly net loss of ~0.53, a simple proxy suggests multiple years of funding runway; however, actual cash burn may differ from accounting losses, especially given R&D spend timing and working capital movements. working_capital: Strong net working capital of 72.37 with limited current liabilities (0.88). Detailed components (receivables, payables, inventories) are unreported, limiting analysis of collection cycles and payables management.

Dividend Sustainability

payout_ratio_assessment: Dividend data were unreported and net income is negative, implying no calculable payout ratio. Negative retained earnings (-37.83) further constrain capacity to pay dividends under JGAAP equity rules. FCF_coverage: Not assessable due to unreported cash flows. Given current losses and development-stage profile, dividend coverage from FCF would likely be inadequate near term. policy_outlook: Given ongoing losses and R&D funding needs, capital allocation is likely to prioritize development and potential partnering over cash returns. Absence of DPS disclosure is consistent with a non-dividend posture at this stage.

Risk Assessment

Business Risks:

• Pipeline execution risk: clinical trial outcomes and timelines can materially affect future revenue and valuation.
• Revenue concentration and volatility: dependence on milestone/licensing rather than recurring product revenue.
• Regulatory and approval risk across target indications and geographies.
• Commercialization uncertainty: manufacturing, pricing, and market access risks if products are approved.
• Partnering dependency risk for out-licensing or co-development economics.

Financial Risks:

• Sustained operating losses with uncertain timing of revenue inflection.
• Potential future financing/dilution risk if cash burn exceeds expectations or timelines extend.
• Limited visibility on cash burn given unreported cash flow data.
• Retained earnings deficit (-37.83) indicative of accumulated losses.

Key Concerns:

• Lack of revenue and cost disclosure, limiting visibility on operating trajectory.
• Unreported cash flow statements, constraining assessment of burn and FCF.
• Reliance on pipeline milestones to improve profitability absent recurring revenues.

Investment Implications

Key Takeaways:

• Q1 FY2026 net loss of -5.27 with operating loss of -5.41 indicates core operations are the primary driver of losses.
• Balance sheet is robust: cash 69.95 vs. total liabilities 2.04; financial leverage ~1.04x.
• Liquidity is very strong with current ratio ~83x and working capital 72.37.
• Revenue and cash flows are unreported, limiting margin and FCF analyses.
• Negative retained earnings (-37.83) and lack of DPS data align with a non-dividend stance.
• Book value per share is 109.71 yen, supported by high cash relative to assets.

Metrics to Watch:

• Cash balance and implied burn rate by triangulating future net losses and any disclosed cash flows.
• Any disclosures on revenue (milestones/licensing) and R&D expense levels by quarter.
• Pipeline milestone timing and trial readouts that could trigger non-dilutive funding.
• Updates on partnerships or collaboration income.
• Changes in working capital and any emergence of interest-bearing debt.

Relative Positioning: Compared with many early-stage biotech peers, StemRIM’s balance sheet is conservatively positioned with substantial cash and minimal liabilities, reducing near-term solvency risk, but profitability and growth visibility remain constrained absent reported revenue and cash flow detail.

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