Human Metabolome Technologies,Inc. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥192M
• Operating Income: ¥-91M
• Net Income: ¥-35M
• EPS: ¥-17.10

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

Human Metabolome Technologies (6090) reported FY2026 Q1 consolidated results under JGAAP showing a material top-line contraction and continued operating losses, albeit with some YoY improvement in operating loss. Revenue was 192 million yen, down 29.8% YoY, indicating a weaker demand backdrop or project timing headwinds. The company reported gross profit of 154.6 million yen, implying a very high gross margin of 80.5%; however, the separately provided cost of sales figure (119.6 million yen) is arithmetically inconsistent with both gross profit and the gross margin, so we rely on the reported gross profit/margin for analysis. Operating income was a loss of 91 million yen, improving 20.2% YoY, suggesting some operating discipline or cost control despite lower revenue. Ordinary income was a loss of 90 million yen, broadly in line with operating loss, indicating limited non-operating drag aside from minor interest expense. Net loss was 97 million yen, a modest 1.4% YoY improvement, pointing to a still-challenged profitability profile. EPS was -17.10, though share count data were not disclosed in this dataset. DuPont metrics show a net margin of -50.5%, asset turnover of 0.096x, and financial leverage of 1.19x, resulting in ROE of -5.75%, with losses mainly driven by weak margin and low turnover rather than leverage. The balance sheet indicates substantial liquidity buffers: current assets of 1,864.8 million yen versus current liabilities of 449.9 million yen (current ratio 4.15x), and working capital of 1,414.9 million yen. The reported equity ratio field shows 0.0%, which appears to be undisclosed rather than actual; based on total assets of 2,002 million yen and low leverage metrics, equity support appears strong, though there are internal inconsistencies between the reported totals for liabilities and equity. Debt-to-equity stands at 0.28x, consistent with modest financial leverage and manageable interest burden (interest expense 0.6 million yen; interest coverage negative due to operating loss). Cash flow statements were not disclosed for the quarter, limiting assessment of cash conversion and free cash flow durability. Income tax expense of 24.9 million yen despite a pre-tax loss suggests deferred tax valuation changes or other JGAAP tax effects; the “effective tax rate” metric provided (0.0%) is not meaningful under a loss scenario. Dividend remains suspended (DPS 0), appropriate given negative earnings and the need to prioritize reinvestment and balance sheet resilience. Overall, the quarter reflects a business with high gross profitability potential but insufficient scale/utilization to cover fixed costs, leaving operating leverage negative in the near term. Key monitoring items include revenue trajectory, backlog/booking trends, operating expense discipline, and visibility on returning to operating breakeven.

Profitability Analysis

ROE_decomposition: DuPont shows Net Margin -50.52% × Asset Turnover 0.096 × Financial Leverage 1.19 = ROE -5.75%. The drag is primarily from very weak net margin and low turnover; leverage contributes minimally. margin_quality: Reported gross margin is 80.5% (154.6m GP on 192.0m revenue), indicative of strong unit economics for delivered services/products. The arithmetic inconsistency with the cost of sales line (119.6m) suggests we should rely on the disclosed gross profit/margin for interpretation. Operating margin is -47.4% (operating loss 91m on 192m sales), showing fixed cost absorption challenges and negative operating leverage. operating_leverage: Revenue declined 29.8% YoY while operating loss improved 20.2% YoY, implying cost actions offset part of the volume decline. Nonetheless, current scale is insufficient to cover fixed costs; incremental revenue recovery should meaningfully improve operating income given high gross margin.

Growth Assessment

revenue_sustainability: Top line fell to 192m (-29.8% YoY), indicating weaker demand and/or project timing slippage. Sustainability hinges on order intake and project pipeline conversion in core metabolomics/biotech-related services. profit_quality: Net loss of 97m with positive reported tax expense (24.9m) suggests non-cash tax effects under JGAAP. Ordinary loss closely tracks operating loss, implying limited non-operating noise; however, absent cash flow data, earnings quality cannot be corroborated. outlook: Near-term outlook depends on stabilization of revenue and operating expense containment. Given high gross margin, a moderate sales recovery could drive disproportionate improvement in operating income. Visibility remains limited without disclosure on backlog, customer mix, or segment trends.

Financial Health

liquidity: Current assets 1,864.8m vs current liabilities 449.9m yield a current ratio of 414.5% and substantial working capital of 1,414.9m, indicating strong short-term liquidity. solvency: Debt-to-equity ratio is 0.28x, and financial leverage in DuPont is 1.19x, both pointing to conservative leverage. Interest expense is minimal at 0.6m, but interest coverage is negative due to operating loss. capital_structure: Total assets 2,002m and total liabilities 466.0m imply equity of ~1,536m, but reported equity is 1,686m; there is an internal inconsistency in the balance sheet lines. Still, all indicators suggest the company is equity-heavy with modest debt.

Cash Flow Quality

earnings_quality: Operating CF was not disclosed for the quarter (reported as 0 due to non-disclosure). As such, OCF/NI and accruals-based diagnostics cannot be reliably assessed. The provided OCF/NI ratio of 0.00 should be treated as unavailable rather than indicative of poor cash conversion. FCF_analysis: Free cash flow not disclosed (0 placeholder). Without capex or OCF detail, we cannot evaluate FCF durability or coverage of operating losses. working_capital: Working capital is ample at 1,414.9m, which should buffer near-term cash burn; however, the absence of inventory and receivables/payables breakdown limits analysis of collection risk and cash conversion cycles.

Dividend Sustainability

payout_ratio_assessment: Net loss (-97m) and DPS of 0 are aligned; payout ratio is shown as 0% and not meaningful under losses. With negative earnings and no FCF disclosure, resumption of dividends is unlikely near-term. FCF_coverage: FCF coverage metric is shown as 0.00x due to non-disclosure; we cannot assess coverage quantitatively. policy_outlook: Given ongoing operating losses and the need to fund growth and R&D/commercial efforts, maintaining a no-dividend stance appears prudent until sustained profitability and positive FCF are achieved.

Risk Assessment

Business Risks:

• Revenue volatility from project-based demand and customer budget cycles
• High operating leverage; insufficient scale to cover fixed costs in weak quarters
• Customer concentration risk typical of specialized biotech/services niches
• Competitive pressures in metabolomics/biotech analytical services and diagnostics
• Regulatory and clinical validation timelines affecting productization efforts

Financial Risks:

• Continued operating losses leading to cash burn (cash flow not disclosed)
• Potential need for external financing if losses persist despite current liquidity
• Tax expense variability under losses (deferred tax valuation changes) impacting net income
• Negative interest coverage driven by operating losses

Key Concerns:

• Top-line decline of 29.8% YoY to 192m
• Operating loss of 91m despite high reported gross margin
• Inconsistencies in disclosed cost of sales and balance sheet totals
• Lack of cash flow disclosure limits assessment of burn rate and runway

Investment Implications

Key Takeaways:

• High reported gross margin (80.5%) suggests strong unit economics when utilized
• Revenue contraction (-29.8% YoY) is the main driver of losses; scale is the swing factor
• Operating loss improved YoY, indicating some cost control amid softer sales
• Balance sheet appears liquid with current ratio 4.15x and low leverage (D/E 0.28x)
• Cash flow details are missing; runway and burn rate cannot be quantified from this release

Metrics to Watch:

• Quarterly bookings/backlog and revenue growth trajectory
• Operating expense run-rate and breakeven revenue level
• Gross margin stability versus mix and utilization
• Cash and equivalents, OCF and FCF once disclosed
• Tax line drivers (deferred tax effects) under continued losses

Relative Positioning: Within Japan-listed small-cap life science/services peers, the company appears to have stronger gross margins but weaker scale and profitability, balanced by a comparatively conservative balance sheet and liquidity.

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