iQPS (TYO: 5595) posted first quarter 2025 earnings (for the fiscal quarter ending August 31, 2024) on Friday. Whereas iQPS reported record ¥631 million revenue the prior quarter (Q4 2024), revenue since declined to ¥350 million (-45%). Profitable just two quarters ago, iQPS posted its largest quarterly loss since becoming a public company: -¥1,903 million. This was expected, since satellite QPS-SAR-5 malfunction in orbit and iQPS had to write it off. iQPS recorded an impairment loss of ¥1,636 million related to QPS-SAR-5 in Q1 driving the large quarterly loss.
Also of note, iQPS’s borrowings increased from ¥2,100m to ¥2,800m. iQPS maintained its guidance issued in September. Thus iQPS still forecasts ¥1130m revenue over the first half of this fiscal year, implying ¥780m revenue for 2Q. And iQPS still projects launching four more satellites by the end of this fiscal year (ending May 2025). According to a published graphic, iQPS still plans to source revenue mainly for Japanese government through end of FY25. So shareholders must wait until 2026 for iQPS to demonstrate ability to capture U.S. government sales – likely the real test for iQPS to achieve its long term sales objectives.