Notice Regarding Revision of Full-Year Earnings Guidance

Details of Earnings Guidance Revision

ispace, Inc. has revised its consolidated full-year earnings forecast for the fiscal year ending March 2026. The primary reasons are delays in the development of the new engine used in Missions 3 and 4, which caused a postponement of payments from the customer of Mission 3 and resulted in lower net sales, as well as a decline in project revenue due to reduced subsidy income resulting from delayed cost occurrences in Mission 4. Net sales have been downwardly revised to 3,400 million yen (previous forecast: 6,200 million yen), with operating loss projected at 10,000 million yen and net loss attributable to owners of parent at 7,200 million yen.

Future Outlook and Impact

Most of the revenue decline represents the deferral of revenue from existing contracts to subsequent periods rather than contract loss or demand deterioration. Although net sales and subsidy income have decreased, operating loss and below have improved from the previous forecast due to reductions in development expenses and the recording of foreign exchange gains. Improvements and tests toward achieving the new engine’s performance are ongoing; however, if additional time is required to achieve performance or if a switch to an alternative engine becomes necessary, delays in the launch schedule for Missions 3 and 4 are possible. The company will continue to disclose the impact of development status and schedule changes in a timely manner.