FY2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Performance Overview

Net sales for the cumulative third quarter period of FY2026 were JPY 21,195 million, down 4.7% year-over-year. This was primarily due to the postponement of revenue recognition for several large-scale clinical trials in the core CRO business until the fourth quarter or later. Operating income declined 45.7% YoY to JPY 1,027 million, mainly reflecting increased costs from significant upfront investments and the timing shift of revenue recognition. Ordinary income was JPY 3,119 million (down 24.6% YoY), and net income attributable to owners of parent amounted to JPY 2,270 million (down 29.2% YoY). By segment, non-clinical business orders increased 13.7% YoY to a record high, while the clinical business saw a decrease in equity-method income. The translational research (TR) business continued to report operating losses.

Financial Position and Outlook

Total assets rose 22.4% from the end of the previous fiscal year to JPY 113,080 million, and net assets increased 32.7% to JPY 53,206 million. These increases were mainly driven by a rise in current assets and the market value appreciation of investment securities. Liabilities increased 14.4% to JPY 59,873 million. There is no change to the dividend forecast, while the full-year earnings guidance for FY2026 has been revised to reflect the revenue timing shifts of multiple large clinical trials and costs related to Satsuma Co., Ltd. The assumed exchange rate is JPY 155 per USD. The company will continue making upfront investments to capture growth opportunities in the CRO business while advancing diversified business expansion including TR and U.S. real estate businesses.