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1 Financial Results Q3 Fiscal Year Ending March 2026 Tokyo Stock Exchange Growth Market-listed (Ticker: 9348.T) February 10, 2026
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CONTENTS 01. Executive Summary 02. Business Highlights 03. Revision of Financial Forecast 04. Financial Highlights • External Environment • Progress of Existing Missions • Progress of Future Missions • Our KPIs 05. Appendix
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01. Executive Summary 02. Business Highlights 03. Revision of Financial Forecast 04. Financial Highlights Executive Summary 01. 05. Appendix
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4Executive Summary Executive Summary of Q3 Fiscal Year Ending March 2026 Mission 2 • Post-mission improvement measures: External Review Task Force and JAXA’s extended technical support are progressing. Aim to hold a briefing to report the results of the Task Force in Q4 TEAM DRAPER COMMERCIAL MISSION 1 • Sales: Ongoing. Total contract value is $86Mn(1) • Development: Conducting studies aimed at future CDR(2) • Progress: Testing continues to achieve the performance of the new engine • Sales: Ongoing. On top of the $81Mn(1) SBIR grant, total contract value is $40Mn(1) • Development : PDR(3) in progress • Progress: Structural Model manufacturing commenced Future Missions • Saudi Arabia: Establishing our fourth global base in a high-growth market, following Japan, Europe, and the U.S. • JAXA: Successively concluded a joint study agreement and a commissioned contract. Strengthening collaboration across wider areas: transportation, technology development, and environmental improvement Finance • Cash and Deposits / Net Assets: Completed a public offering in October-November 2025. Secured funding through M4 while enhancing net assets on the balance sheet • Sales: Ongoing. Secured a budget of $76Mn(4) from ESA on top of the $136Mn from Space Strategy Fund(5) • Development: Decided to commence development following selection for the 2nd phase of the Space Strategy Fund • Progress: Development scheduled to commence sequentially Mission 3 Mission 4 Mission 6JAXA SSF2Mission METI SBIRMission (1) As of February 10, 2026. Converted to yen using the TTM rate at the end of August 2025. Figures rounded down to the nearest w hole number. (2) Critical Design Review. A review meeting to confirm the appropriateness of the detailed design and verification plan for manu facturing and testing, utilizing evaluations conducted to date such as prototype evaluation, thermal structural characteristic evaluation, and electromechanical design evaluation. (3) Preliminary Design Review. A review meeting to confirm the feasibility of design results against specification values and the design verification plan. (4) The amount may fluctuate depending on future contract details, and we do not guarantee the full amount will be contracted. (5) The amount may fluctuate based on future stage gate reviews, and full receipt of the amount is not guaranteed.
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01. Executive Summary 02. Business Highlights 03. Revision of Financial Forecast 04. Financial Highlights Business Highlights 02. 05. Appendix
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6Accelerating Demand for Lunar Business (Macro Environment) Presidential Order Specifies Construction of Lunar Base Prototype and Nuclear Reactor • A new presidential directive signed in December 2025 explicitly states the realization of a crewed lunar landing by 2028 and a lunar nuclear reactor by 2030(1) • The U.S. government strongly supports private sector efforts to build lunar base and develop resources(1), which is expected increase demand for lunar business in the U.S. market • Entrepreneur Isaacman reappointed as NASA Administrator, outlines plans to accelerate Artemis Program and revitalize space economy through private sector leadership(2) • A revised budget amendment maintaining the previous year's funding level was passed, reversing plans for significant cuts and enabling NASA to resume operations(3) • At the aerospace review meeting chaired by Minister of State for Special Missions Onoda, CEO Hakamada presented proposals for building a lunar economy and public-private investment partnerships • Aims to incorporate private sector expertise into space strategy supporting national security and economic growth Entrepreneur Isaacman reappointed as NASA's new administrator CEO Hakamada participated in Japan's Growth Strategy Council Government policies in Japan and the United States, where our entities are located, are a strong tailwind for ispace Credit: Polaris Program / John Kraus Credit: The white house Credit: Japan Cabinet Office (1) https://www.whitehouse.gov/presidential-actions/2025/12/ensuring-american-space-superiority/ (2) https://www.planetary.org/articles/nasa-is-funded-now-what (3) https://www.planetary.org/articles/advocacy-success-fy2026-nasa-budget
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• Team Draper Commercial Mission 1: Transporting multiple experiments for NASA as part of Task Order CP-12 • Control Data Systems: ultra wide band • Italian Space Agency: laser retroreflector array • Magna Petra: Mass Spectrometer Observing Lunar Operations 7Mission 3 Overview (1) The missions and schedules, as shown above, are as of Februay 10, 2026 and may be subject to change (2) As of February 10, 2026. The values are rounded off to integral values • Size: approx. 3.3m tall by 4.5m wide (standing, including its legs) • Mass: approx. 5,390kg (Wet: fully fueled), approx. 1,730kg (Dry: unfueled) • Design Payload Capacity: up to 300kg Hardware Highlights Payload Customer G (Launch in 2027(2)) Draper G P Total contract amount: $86Mn(2) Mission3 Overview TEAM DRAPER COMMERCIAL MISSION 1 Micro Rover • Planned to be installed following Mission 2 Relay Communication Satellites • Two relay communication satellites, named "Alpine" and "Lupine," are planned to be deployed in lunar orbit. • Plans to provide data services to customers starting with Mission 3 and beyond Sales in progress Test in progress P : Private-sector A : Academia G : Government • Scheduled to launch in 2027(1) • Defined as a commercial mission with the ability to carry up to 300kg payloads to the Moon • Member of Team Draper Commercial Mission 1 selected for NASA CP-12 • Delivery near the south pole on far side of the Moon P
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8Mission 4 Overview (1) It was originally agreed with the the Ministry of Economy, Trade and Industry and the SBIR Secretariat that the launch would be within 2027, but as of February 10, 2026. the launch is expected within 2028 according to our in-house development plan. This change is in the process of being coordinated with the relevant ministries and agencies and the SBIR Secretariat, and the plan change will be officially approved after receiving approval from the Minister of Economy, Trade and Industry. (2) Preliminary Design Review (PDR): Review to confirm design results against specification values and feasibility of design veri fication plan (3) Tentative name and the design of the image is subject to change in the future (4) As of February 10, 2026. The amount is calculated using a TTM rate for currency conversion as of August 31, 2025 (5) As of February 10, 2026 (6) We were selected for the SBIR (Small Business Innovation Research) grant by the Ministry of Economy, Trade and Industry. The grant is expected to be provided along with the payment for development costs for the lander rather than in a lump sum. The grant is expected to be recognized as non-operating income following interim reviews. (7) Of the total contract amount of ¥5.8Bn, up to ¥4.7Bn is an estimated amount to be received based on the proposal submitted by Institute of Science Tokyo to JAXA, under its ¥6.4Bn project adopted in the second phase of the Space Strategy Fund. The amount is subject to change depending on stage-gate review, and the full amount is not guaranteed to be contracted. The amount is calculated using a TTM rate for currency conversion as of August 31, 2025 Hardware Highlights • Scheduled to launch in 2028 (1); thermal structural tests completed, proceeding to structural model development • Part of mission costs supported by the grant of $81Mn(4) representing the largest budget size(5) under the SBIR program(6). (Recognition as non- operating income commenced in FY2025/3. Planned for lump-sum recognition at each fiscal year-end) Payload Customer Mission4 Overview (Launch in 2028(1)) • Size: Approx. 3.6m tall by 3.3m wide (standing, including its legs) • Mass: Approx. 4,000kg (Wet: fully fueled), Approx. 1,000kg (Dry: unfueled) • Design Payload Capacity: up to hundreds of kgs (2) METI SBIRMission (3) PDR(2) in progress Sales in progress P : Private-sector A : Academia G : Government Institute of Science Tokyo: lunar orbit satellite *This is the payload in relation to the awarded project called “Development and demonstration of lunar water resource exploration technology (sensing technology) ” for 1st phase of SSF A Total contract amount: $40Mn(7) G Taiwan Space Agency (TASA): Vector Magnetometer and Ultraviolet Telescope
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9Mission 6 Progress (1) The missions and schedules, as shown above, are as of Februay 10, 2026 and may be subject to change (2) This figure is subject to change based on future stage gate reviews and other factors; therefore, full receipt of the amount is not guaranteed at this time. (3) Including launch and space demonstration costs .The amount is calculated using a TTM rate for currency conversion as of August 31, 2025 (4) Tentative name and the design of the image is subject to change in the future (5) https://bizgate.nikkei.com/article/DGXZQOKC2181D021012026000000 Technology Development Theme Maximum Support Amount(2) Exploration, etc. (Phase II) High-Precision Landing Technology in Lunar Polar Regions Up to $136Mn(3) Lander Model Three Key Points of This Selection Point 1: Utilize landing technology demonstrated by JAXA SLIM • The “pinpoint landing” is a unique Japanese technology first demonstrated globally by SLIM • JAXA announced its policy to transfer this technology to the private sector and promote its technological maturity(5) . For this mission, we will utilize the technology Point 2: Formal commencement of Mission 6 development • We will develop an improved lander based on the Series 3 lander model, aiming for a 2029 launch(1) Point 3: Expect to secure the majority of mission costs • Through this selection, ESA’s budget allocation through MAGPIE (details on p.10), as well as reduced development costs resulting from the use of mass production models, we expect to cover Mission 6 costs and improve mission profitability Selected for the $136Mn Space Strategy Fund theme. Utilize JAXA SLIM's high-precision landing technology Mission6 (Launch in 2029(1)) JAXA SSF2Mission (4)
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10Mission 6 Progress (1) The missions and schedules, as shown above, are as of Februay 10, 2026 and may be subject to change (2) Converted using the TTM rate as of the end of December 2025. Decimals are truncated. The amount may change based on future contract details, and full receipt of the amount is not guaranteed. Aiming to secure contracts for the allocated $76Mn(2) • In Phase 1 of the “MAGPIE” project previously contracted with ESA, the research results were evaluated, and ESA has announced securing an additional budget of $76Mn(2) for the subsequent phase entering the demonstration stage (an increase of approx. $29Mn from the Q2 announcement) • The total contract value for the entireMAGPIE project, including previously signed contracts and those expected to be signed in the future, is projected to reach $79Mn(3) • Within this budget, we anticipate a research and development contract for the rover and a lunar transportation contract with the rover as a payload The European Space Agency has secured $76Mn(2) as the MAGPIE budget. Contracts are expected to be signed Funding Target Budget Amount MAGPIE: Lunar exploration project with ESA using rovers Total $76Mn (2) Source: ESA’s online webinar held on Janyary 14, 2026 Mission6JAXA SSF2Mission (Launch in 2029(1))
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11Mission 6 Overview Mission6 Overview JAXA SSF2Mission (1) This mission and schedule are as of February 10, 2026, and are subject to change. (2) Tentative name and the design of the image is subject to change in the future. (3) Converted using the TTM rate as of August 31, 2025. The amount may change due to future stage gate reviews, etc., and full receipt is not guaranteed. (4) Converted using the TTM rate as o f the end of December 2025. Decimals are truncated. The amount may change based on future contract details, and full receipt of the amount is not guaranteed. Hardware Mission Overview • Selected for the second phase of the Space Strategy Fund with a maximum budget of $136Mn(3), lead to the decision to commence development, aiming for high-precision landing in the lunar polar region • Scheduled to launch in 2029(1) • A total budget of $76Mn(4) has been secured for ESA MAGPIE Phase 2 Contracts. The budget is expected to be divided into rover development costs and transportation costs (2) Development Started Budget secured from ESA G European Space Agency (ESA): MAGPIE Phase 2 Secured total budget of $77Mn(4); part expected from R&D sales, part from payload sales Small Rover • Is to be transported and conduct lunar exploration as part of the MAGPIE project • Size: Approx. 3.6m tall by 3.3m wide (standing, including its legs) • Mass: Approx. 4,000kg (Wet: fully fueled), Approx. 1,000kg (Dry: unfueled) • Design Payload Capacity: up to hundreds of kg Payload Customer Sales in progress P : Private-sector A : Academia G : Government (Launch in 2029(1))
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12Progress of Future Mission Establishment of Fourth Global Entity with Support from Both Governments • Announced of Saudi Arabia entity establishment at the Saudi-Japanese roundtable meeting under the Saudi-Japanese Vision 2030 led by METI Akazawa and Saudi Minister of Investment Al-Falih • This will enable close collaboration with key government entities, research institutions, and commercial partners, and support the full-scale expansion of our business operations in Saudi Arabia (1) KSA SPACE MARKET REPORT 2025(https://www.cst.gov.sa/ar/mediacenter/Documents/KSA_Space_Market_Opportunity_Report.pdf) Growth Rate Exceeding the Global Average and Abundant Capital • The Saudi Arabian space market is rapidly expanding at an average annual growth rate of 12%(1), significantly exceeding the global average (9%), and is projected to reach $31.6Bn by 2035 • The Vision 2030 program being advanced in the country strongly promotes economic diversification efforts to reduce dependence on crude oil, with strengthening the space sector being one such initiative Established a local subsidiary in Saudi Arabia. Following Japan, Europe, and the U.S., we aim to secure major contracts with the space agency and research institutions 8.7Bn 31.6Bn (USD) 2024 2035 Space market size ×3.6 in 11 years(1)
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13Progress of Future Mission Jointly exploring lighter and more efficient landers with JAXA(1) • A contract signed with JAXA for joint research on "Resource Optimization of a Lunar Lander Propulsion System Using Electric Pumps" • Jointly conducting optimization studies to improve system efficiency and reduce weight of the lander by applying electric pump technology developed by JAXA (1) For details regarding this matter, please refer to the press release issued on December 23, 2025 (2) For details regarding this matter, please refer to the press release issued on January 14, 2026 Commissioned by JAXA to conduct studies for realizing a sustainable cis-lunar economy(2) • With anticipated increased future lunar activities, a contract signed for "Analysis for Space Debris Mitigation in Lunar Orbit and Disposal Management on the Lunar Surface" • We will assess the effectiveness, from a private-sector perspective, of rules for Artemis Accords signatories on lunar surface and lunar orbit debris mitigation and spacecraft disposal management visual Successively concluded contracts with JAXA. Strengthening collaboration across all fronts: transportation, technology development, and environmental preparation.
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14Progress of Future Mission Agreement Reached on Exploring Collaboration with JAL Group in Lunar Transportation and Operations(3) • Leveraging JAL Group's expertise cultivated in aviation—including maintenance technology, air traffic control, and operations management— the collaboration will advance the co-creation of systems and infrastructure supporting future lunar habitats and high-frequency takeoffs/landings of transport vehicles • New collaborations regarding space-related services for retail customers will also be explored (1) HAKUTO-R is a program involving two missions—lunar orbiting and lunar landing—using Japan's first privately developed lunar lander. The partnership agreement refers to the contract for customer marketing support services conducted through HAKUTO-R. (2) For details regarding this matter, please refer to the press release issued on December 4, 2025. (3) or details regarding this matter, please refer to the press release issued on December 3, 2025. Agreement Reached on Strategic Partnership with Kurita Water Industries for Water Resource Development(4) • A basic agreement on a strategic partnership has been signed, aiming to create business opportunities for securing water resources and building supply infrastructure on the lunar surface in the future • By combining Kurita Water Industries' long-cultivated water treatment technologies and expertise with our track record in commercial lunar exploration and transportation services, we aim to establish sustainable water resource infrastructure in space Following the "HAKUTO-R" Partnership Agreement(1), New Agreements Reached on Strategic Collaboration toward Building the Cislunar Economy (From left) Mr. Haraikawa, Director and Head of Business Promotion Department, JALEC; Mr. Suzuki, Executive Officer and Head of Innovation Division, JAL; Takeshi Hakamada, CEO & Founder, ispace; Mr. Mouri, Executive Officer and Head of Aviation & Airport Business Division, JALUX
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15Progress of Future Mission Selected for the Space Strategy Fund as a collaborating institution alongside lead institution Ritsumeikan University(1) • Selected for the Space Strategy Fund Phase 2 project "Establishing Surveying and Ground Investigation Technologies to Realize Lunar Base Construction" with Ritsumeikan University as the lead institution • The team aims to establish a design framework for civil engineering structures to contribute to the potential construction of lunar base Signed an MOU with Dymon regarding the Development of Payload Transportation Box(2) • Based on our accumulated technology and expertise and Dymon’s proven track record in developing rovers, jointly exploring the development of a highly efficient payload transportation box • Simplifies payload transportation and deployment, which are previous barriers for non-space industries entering lunar development, through the transportation box, targeting a broader customer base Co-creation with Domestic Startups & Industry-Academia: Contributing to Lunar Base Construction through Improving Payload Efficiency and Space Strategy Fund–Subsidized Studies (1) For details regarding this matter, please refer to the press release issued on January 30, 2026 (2) For details regarding this matter, please refer to the press release issued on November 4, 2025 Takashi Hakamada, CEO & Founder of ispace Inc. (left) and Shinichiro Nakajima, Representative Director of Daimon Inc. (right)
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16KPI - Sales We anticipate recognizing revenue of over $370Mn from secured contracts and grants (excluding those recorded in P/L) and anticipated contracts from Mission 3 onwards. Additionally, we anticipate demand over $620Mn FY2025/3 FY2026/3 FY2027/3 FY2028/3 FY2029/3 (1) Cumulative amount recorded as net sales, calculated using a TTM rate for currency conversion as of August 31, 2025. (2) Unrecorded amount is as of December 31, 2025. The ultimate recognition of the unrecorded amount may differ from the unrecorded amount set out here. (3) Of the total of $43Mn in support awarded to the Institute of Science Tokyo, the above is the estimated amount we may receive based on the proposal submitted to JAXA. The amount may change and is depends on certain events such as the first stage-gate evaluation. There is no guarantee we will receive any or all of these amounts. (4) Calculated using a TTM rate for currency conversion as of August 31, 2025. (5) Unrecorded amount is as of December 31, 2025. The ultimate recognition of the unrecorded amount may differ from the unrecorded amount set out here. Calculated using a TTM rate for currency conversion as of December 31, 2025 (6) This figure is subject to change based on future stage gate reviews and other factors; therefore, full receipt of the amount is not guaranteed at this time. (7) Converted using the TTM rate as of the end of December 2025. Decimals are truncated. The amount may change based on future contract details, and full receipt of the amount is not guaranteed grants. (8) As of February 10, 2026. Customers with whom relevant contracts have been entered into or from whom have been awarded, selected or secured are labelled as “Contracted” (9) As of February 10, 2026, we are expecting to enter into contracts with these clients in the future. There is no guarantee that we will be able to enter to such contracts or the contractual amounts. Furthermore, our Missions and their schedules are subject to change (10) Calculated using a TTM rate for currency conversion as of December 31, 2025. MOU and IPSA are not legally binding, and there is no guarantee of us signing legally binding contracts based on MOU and IPSA. And even if we sign legally binding contract, there is possibility of change in estimated weight and unit price, and described contract amount Base Mission Launch Timing M2: Takasago, etc Completed M3: NASA CLPS CP-12, etc Contracted M3: Magna Petra Contracted M4: Institute of Science Tokyo Contracted M4: SBIR Lunar Lander Dev. Awarded M4: TASA Contracted M4: University of Leicester IPSA Signed(5) M6: SSF2 High Precision Landing Selected M6: MAGPIE Following Phase Budget secured $14Mn(1) $22Mn M3 CY2024 CY2025 CY2026 CY2027 CY2028 $8Mn $76Mn(7) $81Mn(4) ($80Mn unrecorded(5)) $4Mn(4) M4 M5 M6M2 $64Mn ($30Mn unrecorded(2)) Present $136Mn(4)(6) Up to $32Mn(3)(4) $372Mn To be recorded from the current fiscal year $621Mn Potential Demand(10): (MOU and IPSA) Contracted(8)/PrivateContracted(8)/Gov. Potential/Gov.(9) (2)
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17Mission schedules Steadily incorporate lessons learned from M2 into M3 and M4 under the current “Initial Commercial Phase”, and aim to expand profitability for each mission by development cost reductions and further sales growth in the subsequent “Mass Production Phase” (2025/1) M2 (2022/12) M1 (2028(4)) M4 (5) (2027) M3 feedback Landers Edge R&D Lunar-Orbit Satellites Orbital Transfer Vehicle (OTV) New CLPS(3) SSF2(2) New CLPS(3)MAGPIECLPS CP-12 JP SBIR SSF1(1)Private Private (2029) M6 (2029) M5 (2030) M7 ・・・ 30kg(6) 30kg(6) 300kg(6) Several Hundreds kg(6) 300kg(6) 300kg(6) Image Based Navigation Technology Verification of Overnight stay on the Moon Overnight stay on the Moon High-Precision Landing on polar regions Developing two first large models: Initial Commercial Phase Expects to reduce financial burdens: Mass Production Phase Completed: R&D Phase (5) Several Hundreds kg(6) Above is our estimation of mission and schedule as of February 10, 2026., and may be change. (1) Indicates JAXA’s SSF Phase 1st (2) Indicates JAXA’s SSF Phase 2nd (3) We have not officially decided to apply these clients, and there is no guarantee of us winning the contracts for those we have applied. (4) Initially, we have agreed with METI and SBIR office for launching within 2027, however, based on our company’s current development plan as of 2025/10/6, the launch is expected to be within calendar year of 2028. This change is still under discussion with related ministries and SBIR office, official change of schedule will be determined after approval of Minister of Economy, Trade and Industry. (5) Estimation as of February 10, 2026. The name is subject to change in the future. The lander design described in this materials is subject to change. (6) Maximum Payload Capacity.
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01. Executive Summary 02. Business Highlights 03. Revision of Financial Forecast 04. Financial Highlights Revision of Financial Forecast 03. 05. Appendix
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19 Project revenue(1) is expected to decrease by approx. 40% from the initial plan. However, majority of the decrease stems from the deferral of revenue recognition from existing signed contracts to the next fiscal year and beyond. The total contract value, or “the company's earning power”, remains unchanged Revision of Financial Forecasts • Project Revenue, which includes revenue from SBIR grants in addition to Net Sales, is expected to decrease by approx. 40% compared to the initial forecast • However, the majority of the decrease stems from the deferral of revenue recognition from existing signed contracts to subsequent periods, and the total contract value remains unchanged • Note that these differ from “revenue decrease” resulting from contract losses or weakened demand, and the company’s earning power remains unchanged • The deferral to the next fiscal year and beyond is due to delay in payments and development expenditures caused by mission development progress (details on the following pages) Point: "Project Revenue" (Company estimate) (Billion of Yen) Fiscal Year Ended March 2025 (Actual) Fiscal Year Ending March 2026 (Forecast) Net Sales Project Revenue(1) 4.7 3.4 Revenue from signed contracts, carried forward to subsequent periods 4.9 6.2 (Approx. 10.0) 6.0 (1) Our estimated figures, which add income from SBIR grants (non-operating income) to net sales Initial Revised Approx. 40% reduction Fiscal Year Ending March 2026 Project Revenue Forecast
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Initial Mission 2/5 Mission3 Mission4 Others Revised • Mission 2/5: Impact of reduced net sales due to the M2 landing failure, and reduction due to the not yet selected by the U.S. project (CLPS(2)) planned as Mission 5 sales • Mission 3: Delay of the payments tied to development milestones occurred due to delay in achieving the required specific impulse during performance tests for the new engine development. Under the cost recovery method, deferred revenue was insufficient to cover incurred costs, resulted in delayed revenue recognition • Mission 4: Similar to M3, delays in new engine development and the proactive deferral of expenditures for other components have caused delayed receipt of SBIR grant • Other: Due to factors such as the deferral of subsidy income from contracts already concluded at the European subsidiary 20 (1) Our estimated figures, which add income from SBIR grants (non-operating income) to net sales (2) Commercial Lunar Payload Service Fundamental net sales decrease of the Project Revenue is limited to a small portion, while the majority is deferred to the next fiscal year and beyond. The deferral is primary due to longer than expected time to achieve the performance of the new engine for Missions 3 and 4 Revision of Financial Forecasts (Billion of Yen) Indirect impact due to new engine development delays Deferred revenue recognition from signed contracts Deferred to the next fiscal year and beyond Uncontracted portion (Fundamental decline in net sales) Carry forward to subsequent periods Proactive deferral of expenditures 6.0 (Approx. 10.0) Fiscal Year Ending March 2026 Project Revenue Forecast Point: Comparison with Initial Forecast
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21Status of New Engine Development (Review) Status as of May 2025 • It was determined by ispace and Agile Space Industries that a original propellant architecture was experimental and carried unnecessary risk and development schedule • As a countermeasure, it was decided to pivot to a traditional equal volume MMH/MON-3 propellant and jointly develop the new engine "VoidRunner" • Agile is investing in the development of the Voidrunner engine, while ispace-U.S. is developing the valves that control the engine's output Development of the "VoidRunner" engine is progressing, but the discovery of a necessary propellant architecture change requires added development time and could impact mission schedule • Agile has been conducting 4 design-iteration/hot-fire test cycles of the Voidrunner engine and has demonstrated acoustic and thermal stability. However, the required performance and fuel efficiency have not yet been demonstrated, requiring additional iterations • Once successful, the resulting Voidrunner engine/valve assembly is expected to have cutting edge performance while being one of the first throttling MMH/MON3 engine developed since the Apollo era • Switching to an alternate engine provider is an option if further delays in the engine development and testing with Agile become unacceptable. While Team Draper Commercial Mission 1 (ispace Mission 3) has committed to NASA for the development effort, Mission 3 could be delayed due to this development delay • We will continue to closely monitor the new engine development status and disclose information in a timely manner Status as of February 2026
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22Our Revenue Recognition Method ① Under the cost recovery method, in principle gross profit during the mission period is zero, since net sales and COGS are recorded at equal amounts capped by the amount of Deferred Revenue, etc. received from customers in advance ② When the Deferred Revenue, etc. is insufficient, the full amount of COGS cannot be recognized as net sales, resulting in a negative gross profit ③ When customer payments are scheduled upon achievement of development milestones, revenue recognition resumes within the scopeof Deferred Revenue, etc. (1) ④ At mission completion, the amount remaining from the total contract value minus previously recognized revenue is recognized as revenue in a lump sum Under the cost recovery method, net sales and COGS are recorded at equal amounts, capped by deferred revenue related to development milestones, whether received or to be received (collectively, “Deferred Revenue, etc.”). When Deferred Revenue, etc. is insufficient, net sales are only partially recognized, resulting in negative gross profit ①Sufficient Deferred Revenue, etc. ④Mission Completion Net sales COGS Deferred. Revenue, etc ② Insufficient Deferred Revenue, etc. ・ ・ ・ ・ ・ ・ ③Deferred Revenue, etc. Recovered Net sales recognition resumes upon completion of the development milestone. (1) (1) Regarding the cost amount that could not be recognized as revenue during period ② due to insufficient Deferred Revenue, etc., discussions are ongoing with the audit firm about whether it will be retroactively recognized as revenue at point ③ (in which case gross profit would temporarily show a surplus). Relationship Between Deferred Revenue, etc. and Net Sales When Deferred Revenue, etc. is insufficient, costs are recorded but revenue cannot be fully recognized Gross Profit 0 0 0 0(1) PositiveNegative Negative
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23 Point: Comparison with Initial Forecast Similar to net sales, delays in Mission 3 and 4 expenditures due to engine development setbacks impacted net loss. Exchange gains also contributed, resulting in an improvement in net loss Initial Decrease of sales Decrease of subsidies Financing cost Decrease of SGAs Exchange etc. Revised △8.3 △7.2 (Billion of Yen) Fiscal Year Ending March 2026 Net Profit Forecast Revision of Financial Forecasts Impact of Mission Development Delays Impact of Mission Development Delays • Decrease in Net Sales: Primarily due to the inability to recognize corresponding sales in Mission 3 and 4 due to insufficient deferred revenue • Delay in Subsidy Income: Impact of delayed expenditures for Mission 4 development costs and R&D expenses • Financing Costs: Interest associated with the 15 billion yen loan agreement in May 2025 and expenses related to the equity financing from October to November 2025 • Decrease in SG&A: Primarily due to the impact of R&D expenses not being incurred as anticipated due to development progress in Missions 3 and 4 • Foreign Exchange Gains, etc.: Foreign exchange gains totaling 2 billion yen were recorded cumulatively in Q3
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• Net Sales: Decreased primarily due to insufficient deferred revenue from customers for Mission 3, resulting in delayed customer payments compared to projections • Gross Profit: The loss is expected as COGS were recorded while net sales was not recognized due to insufficient deferred revenue for Mission 3 and 4 • Operating Income/Loss: Primarily due to delayed expense recognition from engine development delays in Missions 3 and 4, and the impact of deferring development costs flexibly • Net Income: Although SBIR grant income (non-operating income) decreased due to delayed development cost recognition for Mission 4, increased from the previous forecast due to factors such as foreign exchange gains 24 Point: Comparison with Initial Forecast Revised fiscal year forecast on Net Sales basis. Net loss forecast has improved due to the deferral of development expenses and foreign exchange gains Revised Earnings Forecast (Millions of yen) FY 2026/3 (Forecast) FY 2026/3 (Forecast) Revised Forecast Initial % Change Change Project revenue(1) 6,000 ー (2) - - Net Sales 3,400 6,200 △45.2% △2,800 Gross Profit △1,400 500 - △1,900 Gross Profit Margin - 8.1% - SG&A 8,600 12,000 △28.3% △3,400 Operating Profit/Loss △10,000 △11,500 - +1,500 Ordinary Profit/Loss △7,200 △8,300 - +1,100 Net Profit/Loss △7,200 △8,300 - +1,100 (1) Our estimated figures, calculated by adding income from SBIR grants (non -operating income) to accounting net sales (2) The previous forecast did not disclose specific figures for project revenue. The numerical range illustrated in the chart was based on an estimated figure of approximately ¥10 billion.
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01. Executive Summary 02. Business Highlights 04. Financial Highlights 03. Revision of Financial Forecast Financial Highlights 04. 05. Appendix
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• Net Sales: Sales increased YoY due to progress in M3 development, while its recognition was delayed related to M3 occurred in the Q3 • Operating Income/Loss: Delayed net sales recognition and cost recognition for M4 resulted in negative gross profit. Operating loss increased YoY • Net Income/Loss: Net loss was ¥6.2Bn, primarily due to the impact of foreign exchange gains recorded in Q3, representing a YoY decrease. Furthermore, SBIR grant income related to M4 received through this fiscal year is scheduled to be recognized as non- operating income in a lump sum in Q4 26 (Millions of yen) FY 2026/3 FY 2025/3 (Previous Year) FY 2026/3 (Forecast) Disclosed today, February 10 Q3 Results Q3 Results % Change Full Year Forecast % Progress Net Sales(1) 2,743 1,989 37.9% 3,400 80.7% Gross Profit △667 368 - △1,400 - Gross Profit Margin - 18.5% - - - SG&A 6,281 6,802 △7.7% 8,600 73.0% Operating Profit/Loss △6,948 △6,434 - △10,000 - Ordinary Profit/Loss △6,240 △6,779 - △7,200 - Net Profit/Loss △6,246 △7,365 - △7,200 - Point: YoY comparison Delays in developing the new engine for Mission 3 resulted in a delay in recognizing net sales and a decrease in net loss for the period compared to the previous year Profit and Loss Statement (1) For Mission 2, the revenue recognition method was changed in January 2025 from the cost recovery method to the method of revenue recognition based on the percentage of completion of performance obligations
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• R&D Expenses: In Japan entity, the focus of mission cost recognition shifted from R&D to COGS with the transition from M2, a R&D mission, to M4, resulted in R&D expense to decrease YoY • Salaries and Allowances: Increased by 32.7% YoY due to an increase in the total number of employees across the group (+31 employees compared to the same period last year) • Other: Expenses for the Q3 decreased YoY , with the cumulative total remaining flat compared to the same period last year Point: YoY comparison 27Profit and Loss Statement - SG&A (Millions of yen) FY 2026/3 FY 2025/3 (Previous Year) Q3 Results Q3 Results %Change R&D 2,705 3,709 △27.1% Salary and Allowance 1,573 1,185 32.7% Other 2,003 1,906 5.1% Total 6,281 6,802 △7.7% SG&A decreased YoY due to a shift in the focus of expense recognition from R&D to cost of goods, driven by the progress of M4 development
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28Balance Sheet • Assets: Cash and Deposits: Increased from the previous fiscal year- end mainly due to ¥18.2Bn capital increase conducted in October-November 2025, securing sufficient cash on hand Advance Payments: Increased compared to the previous fiscal year-end, mainly due to procurement of components for M3 and M4 • Liabilities: Interest-bearing Debt: Increased compared to the end of the previous fiscal year due to borrowing in May 2025 • Net Assets: The increase from the previous fiscal year-end was mainly due to ¥18.2 billion capital increase, securing net assets for immediate business progress Point: Comparison from FY2025/3 Q4 Capital increase from October to November 2025 reinforced net assets, securing stable liquidity (1) Total of contract liabilities and advance payments (Millions of yen) FY 2026/3 FY 2025/3 Q3 Results Q4 Results %Change Current Asset Total 38,598 19,067 102.4% Cash and Deposit 34,273 13,117 161.3% Short Term Advances 3,042 3,620 △16.0% Non-Current Assets Total 12,219 8,121 50.5% Property and Equipment 5,822 4,859 19.8% Long Term Advances 5,815 2,997 94.0% Total Assets Total 50,818 27,189 86.9% Current Liabilities Total 4,830 3,854 25.3% Advances Received(1) 1,991 2,695 △26.1% Short Term Debt 1,689 0 - Long Term Liabilities Total 29,142 16,326 78.5% Long Term Debt 28,979 16,096 80.0% Liabilities Total 33,972 20,181 68.3% Net Assets Total 16,845 7,007 140.4% Liabilities&Net Assets Total 50,818 27,189 86.9% (Interest-Bearing Debt) 30,669 16,096 90.5%
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Never Quit the Lunar Quest IR Inquiry : ir@ispace-inc.com
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01. Executive Summary 02. Business Highlights 03. Revision of Financial Forecast Appendix 05. 05. Appendix 04. Financial Highlights
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INITIAL MISSION 2／5 MISSION3 MISSION4 OTHERS REVISED (For reference) • We believe that project revenue—which combines accounting-based net sales with grant income such as SBIR—more accurately reflects the company’s fundamental strength and is therefore the appropriate metric • For reference, even when using accounting-based net sales (left chart), the primary factors driving the sales decline remain similar (see P22) • Note that the sales-based metric does not include most SBIR grant income (Mission 4), which is recorded as non-operating revenue in accounting 31 (1) Commercial Lunar Payload Service Point: Comparison with Initial Forecast (For reference) Even on an accounting revenue basis, the actual decline in net sales is minimal, with the majority being deferred to the next fiscal year and beyond. The primary reason for this deferral is the time required to achieve the performance specifications for the new engines to be used in Missions 3 and 4 Factors Contributing to the Decline in Net Sales (Billion of Yen) Carry forward to subsequent periods Carryover amount 6.2 3.4 Deferred revenue recognition from signed contracts Deferred to the next fiscal year and beyond Uncompleted contract portions （Substantial decline in net sales）
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Business Overview – OUR VISION EXPAND OUR PLANET. EXPAND OUR FUTURE. “Moon Valley 2040” concept Imagine a future where water on the Moon helps build infrastructure by industries like construction, manufacturing, energy, and communications. By the 2040s, 1,000 people live on the Moon and 10,000 visit each year. Creation of a world where the Earth and the Moon are one ecosystem, establishing a new economy on the Moon. 32
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It is estimated that there is a large amount of water(1) on the lunar surface, and the possibility of benefiting life on Earth by using the moon as a “supply base” for fuel derived from water, will be examined. 33Business Overview – WHY THE MOON? (Existence of Abundant Water Resources) H2O(3) 1/6G(4) ENVISIONED ECOSYSTEM(2) Recognizing the Earth and Moon as single ecosystem (1) https://science.nasa.gov/moon/moon-water-and-ices/ (2) The image shown on this slide is for illustrative purposes only. (3) According to the study cited in note (1), water may be widely distributed on the lunar surface, and water extracted from the regolith could be electrolysed to separate hydrogen and oxygen and used as a fuel source for future deep space exploration. (4) Because the moon has 1/6 of Earth's gravity, the cost of launching is theoretically lower than Earth's. Maintenance of satellite infrastructure essential for the sustainable and affluent life of humankind - GPS, communications, disaster prediction, security, etc. Realization of low-cost, high-frequency access to deep space areas - Discovery of new resource values through deep space exploration, etc.
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Increasing attention to Helium-3 • While the amount of Helium-3, which its market price is estimated to be $150K/g(2), is very limited on Earth in the natural state, it is estimated that there are about 1.1Mn tons(3) (with Market value of $165Qn(4))of it to be existed on the lunar surface. • In addition to demand for use in cooling quantum computers, Helium-3 also holds promise as a potential energy source via nuclear fusion. (2) • In May 2025, the U.S. Department of Energy has agreed to purchase future mined Helium-3 from a private company for the first time. (1) There may be a variety of rare metals on the moon, and movement towards commercialization is beginning as the U.S. Department of Energy’s contracted to purchase Helium-3 mined from the moon by private companies in the future(1) . 34Business Overview – WHY THE MOON? (Existence of Rare Metals) (1) https://energynews.pro/en/united-states-signs-historic-agreement-for-helium-3-extracted-from-the-moon/ (2) https://thequantuminsider.com/2025/09/17/bluefors-enters-deal-to-secure-lunar-helium-3-supply-from-interlune/ (3) https://balerionspace.substack.com/p/the-helium-3-imperative?utm_campaign=post (4) Calculated by market unit price of $150K/g multiplied by 1.1 million tons. (5) Popular Science (https://www.popsci.com/elements-mine-on-the-moon/ ), European Space Agency (https://www.esa.int/Enabling_Support/Preparing_for_the_Future/Space_for_Earth/Energy/Helium- 3_mining_on_the_lunar_surface) Various types of rare metals(5) Iron MagnesiumAluminum Calcium Silicon Titanium • It has been pointed out that various kinds of rare metals may exist on the lunar surface. • It is expected to be used not only for bringing back to Earth but also for building materials for lunar infrastructure. H 3 Helium-3
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(1) The image shown on this slide is for illustrative purposes only. Using third-party launcher, Our lander is launched into outer space on an external vendor’s rocket. After landing, our lander and rover explore and acquire data from the lunar surface. Business Overview – Business area Our lander navigates and delivers the payload to the Lunar orbit and the Lunar surface Realtime data feedback and distribution to the Earth Using service of third-party to launch Deployment of customer payloads, rover exploration and the Lunar surface data acquisition through satellites, rovers and landers 35
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Payload services are the core of our business. We aim for further growth through the establishment of data services 36Business Overview – Main Service Payload Services: Our core service driving our net sales • Transport customers’ payloads to the lunar orbit and lunar surface • Contracting payload services with clients with our estimated unit price of $1.5Mn/kg(1) • Customers will acquire significant data from the payloads by conducting experiments as needed Data Services: Future Growth Drivers • Customers are expected to acquire significant data from payloads transported by ispace • Access to the database accumulated through high frequency missions will be provided to customers in the future • Net sales from data services began to be recorded from FY2026/3 Q1 (1) Estimation as of October 6, 2025. The estimated unit price is expected to decrease for a certain level.
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Total net sales: $9Mn(1) • Niterra: solid-state battery • MBRSC: rover • JAXA: Transformable lunar robot • Mission Control Space Services: AI flight Computer • Canadensys Aerospace: Camera P P P (1) out of the total contract amount of $10Mn, $0.7Mn was not received and not recognized due to the incomplete lunar landing Highlights Hardware Payload Customer （from the left. No logos of two Canadian companies） Mission 1 Overview (Completed in 2022) Sales Completed ⚫ In 2022, ispace became the 1st commercial company to successfully launch a lunar lander ⚫ Required hardware functions worked appropriately, and no technical problem was found in the hardware of the lander ⚫ The software issue related to the landing phase has been identified and improvements are being implemented for Mission 2 ⚫ Contracts with non-cancellation and non-repayment policy allowed us to secure mission revenue despite the outcome of the mission. ⚫ The world’s first lunar insurance provided ¥3.7Bn Technological Achievements Sustainable Business Model G G P : Private-sector G : Government Size Approx. 2.3m tall by 2.6m wide (standing, legs deployed) Mass Approx. 1,000kg (Wet: fully fueled) Approx. 340kg (Dry: unfueled) Design Payload Capacity Up to 30kg (Former) Series 1 lander Mission 1 Overview 37
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38 M1はミッション期間のsuccess5まで達成 KPI Achieved 8 out of 10 Success Milestones, despite not being able to achieve lunar landing. Acquired valuable data until the end of landing sequence Mission 1 Overview - Success Milestones Success 1 Completion of Launch Preparations Success 2 Completion of Launch and Deployment Success 3 Establishment of a Steady Operation State (Initial Critical Operation Status) Success 4 Completion of first orbital control maneuver Success 5 Completion of stable deep-space flight operations for one month Success 6 Completion of all deep space orbital control maneuvers before LOI Success 7 Reaching the lunar gravitational field and lunar orbit Completed Nov 28, 2022 Completed Dec 11, 2022 Completed Dec 16, 2022 Completed Dec 15, 2022 Completed Jan 11, 2023 ✓ ✓ ✓ ✓ ✓ Completed Mar 18, 2023 Completed Mar 21, 2023 ✓ ✓ Success 8 Completion of all orbit control maneuvers in lunar orbit Success 9 Completion of lunar landing Success 10 Establishment of a steady system state after lunar landing ✓ Completed Apr 14, 2023 Not completed Not completed ※ The image shown on this slide is for illustrative purposes only.
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39 39 Mission 1 Overview - Achievements 39 ※ 上図はあくまでイメージです Became the first private company to reach the final lunar landing phase. Gained valuable data that can be used in future missions, and established the policy for Mission 2 and beyond, considering the results of Mission 1 Effectively decrease speed from the orbital speed Adjust attitude with low pitch-up maneuvers *Pitch-up Making the upper part of the lander vertical to the lunar surface Confirm landing target point during the final approach Final landing phase ※ The image shown on this slide is for illustrative purposes only. Vertical landing on the lunar surface
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The cause of failure is “mis-recognition of altitude”: The lander judged sudden and unexpected altitude change measured by a sensor as a breakdown, which had been remedied for Mission 2 40Mission 1 Overview - Landing phase ⚫ In the final phase of landing, the sensor noticed sudden altitude change ⚫ The system judged this as misinformation caused by breakdown and stopped to adopt altitude data from the sensor ⚫ In fact, the sudden altitude change of approx. 5km recognized by the sensor was correct as there was a cliff. ⚫ In reality, the lander was way above the moon surface, however, it got into the final landing phase and eventually ran out of fuel and dropped to the surface (Route) Lunar Surface Large cliff of approx. 5km Altitude recognition by the sensor × Stopped adopting data from the sensor ↓
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Total net sales: $14.5Mn(1) • Takasago Thermal Engineering: water-splitting experiment • euglena: lunar algae-cultivation equipment • National Central University, Taiwan: deep space radiation probe • BANDAI NAMCO: “GOI Space Century Charter” plate • Artist, Mikael Genberg: Moonhouse (artwork) P P P P Mission 2 Overview (1) As of August 8, 2025. Numbers are rounded down to the nearest whole number. Of the total contract amount of $16Mn, $1.5Mn was not received due to the incomplete lunar landing, resulting in a decrease in recognition of total net sales. Hardware Highlights • An R&D mission aimed at verifying technologies related to lunar landing and lunar exploration • Although the final lunar landing was not achieved, the mission successfully demonstrated reliable transportation capability to lunar orbit • The cause of the landing failure was a hardware issue in the laser range finder (LRF) • Corrective actions will be made to incorporate further improvements into subsequent missions, including a review of the landing sensors and expanded technical support from JAXA • As for payload contracts, the net sales to be recognized decreased by $1.5Mn to a total of $14.5Mn; however, no refunds or compensation for damages were incurred, and the financial impact of the failed landing is limited • Recorded our first data service net sales of ¥23Mn in Q1 Payload Customer (from the left) A Mission 2 Overview (Completed in 2025) • Size: Approx. 2.3m tall by 2.6m wide (legs deployed) • Mass: Approx. 1,000kg (Wet: fully fueled), Approx. 340kg (Dry: unfueled) • Design Payload Capacity: Up to 30kg Sales Completed • Design: Lightweight to withstand vibrations during transit to the lunar surface • Mass: approx. 5kg • Design Payload Capacity: up to 1kg P : Private-sector A : Academia G : Government
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42 Phase 4 of Success 9 was completed, and the lander continued its descent in a vertical attitude. However, telemetry was lost approx. two minutes before the scheduled landing time, indicating a hard landing (1) Success 9 is divided into six phases, with Phase 4 “Braking Burn & Pitch-up” Incomplete Incomplete
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Technical Factors • Software (landing and descent algorithm) • A 5 km steep crater just before the landing point was not sufficiently incorporated into the verification of the terrain on the approach path • Hardware (LRF, a sensor measuring range) • The LRF failed to function at the expected altitude, causing delays in altitude measurements • Possibility that the LRF performance during descent was below pre-mission expectations, or that the LRF may have malfunctioned or degraded during flight The Resulting Event During Landing As with Mission 1, the landing phase revealed remaining challenges in altitude recognition. However, the technical cause differed from that of Mission 1, as a hardware issue occurred in the modified component. 43Mission 2 Summary – Comparison with Mission 1 Landers Used Success Milestone Mission 1 (launched in 2022) Mission 2 (launched in 2025) • Through Missions 1 and 2, which were both R&D missions, the same model (RESILIENCE lander) was used • Mission 1 has demonstrated that the hardware functioned properly • Due to the discontinuation of manufacturing by the previous supplier, only the hardware of the laser range finder (LRF) was changed from that used in Mission 1 Of the 10 success milestones, up to Success 8 (Completion of all Orbital Control Maneuvers in Lunar Orbit) has been achieved The lander detected an unexpected altitude change caused by a crater and interpreted it as a sensor malfunction, so it did not adopt the majored altitude and hovered at an altitude of 5 km. Ultimately, fuel ran out, and the lander made a hard landing It is thought that the timing of acquiring valid data from the LRF was delayed, resulting in insufficient deceleration and a hard landing Cause Location The issue was commonly related to altitude recognition; however, the underlying causes differed between Mission 1 and Mission2. The issue from Mission 1 has been resolved
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44Mission 2 Summary – Cases of Landing Failure and Corrective Actions • Hardware failure or performance degradation of LRF during the flight • Unexpected performance of LRF during the descent phase • Laser incidence angle and laser output • Albedo characteristics • Performance at high speeds • Deterioration due to radiation effects Corrective Actions for Landing Sensors • Enhancement of verification strategy and planfor landing sensors, including LRF • Improvement of the selection, configuration, and operationof landing sensors, including LRF Broader Enhancement Measures • Establishment of an “External Review Task Force” including third-party experts • Expansion of technical support from JAXA ※ The above is an excerpt from “Presentation Material for Mission 2 "SMBC x HAKUTO-R VENTURE MOON" Technical Cause Analysis” disclosed on June 24. 2025 Possible factors for the delay in obtaining valid LRF data (our assessment) Further possible factors (our assessment) Corrective actions based on the analysis of the above factors In the above photo, the red frame shows the LRF. It is installed on the side of the lander. Approx. two weeks after the landing failure, a thorough telemetry analysis was conducted, and determined that the LRF was the technical cause. Further factor analysis as part of the development of subsequent missionsto be implemented.
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(1) Of the total contract amount of $16Mn, $1.5Mn was not received due to the incomplete lunar landing, resulting in a decrease in recognition of total net sales (2) As of August 8, 2025 (3) As of August 8, 2025. The impact on the Mission 4 schedule due to the engine delivery delay for Mission 3 is under review 45Mission 2 Summary – Financial and Business Impact of Landing Failure The financial impact of the incomplete landing of Mission 2 remains limited. Secured sufficient liquidity through cash and cash equivalents exceeding ¥260Mn as of June 2025. Impact on payload contracts for Mission 2 Although the incomplete landing resulted in $1.5Mn(1) in unrecognized net sales, there will be no refunds or compensation under any of the payload contracts Impact on development costs for subsequent missions Increased development costs for Mission 3 and Mission 4 are estimated to total approx. ¥1.5Bn(2) Impact on the schedule of subsequent missions The incomplete landing will have no impact on launch schedule for Mission 3 and Mission 4(3)
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46Mission 2 Summary – Achievements Achievement 1 Demonstrated consecutive reliable transportation capability to lunar orbit Despite the incomplete landing, the results obtained from Mission 2 will be fully utilized to enhance the success of future missions. Achievement 2 Acquired landing sequence data under different conditions through two separate missions Achievement 3 The deviation from the target landing site was within a 1 km radius, demonstrating the effectiveness of the guidance, navigation and control system Achievement 4 Significant improvement in both development and operations through the lessons learned from Mission 1 • Development Period Reduced: Approx. 40％ • Development Cost Reduced: Approx. 50％ • Period from Launch to Initial Operational Phase Completion Reduced: Approx. 60％ Achievement 5 Recorded our first data service revenue of ¥23Mn in Q1
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47Development KPI To increase the probability of mission success, we conduct reviews at each milestone. PDR and CDR, two particularly important KPIs, will be scheduled immediately before large investment. Quality and efficiency improve through several mission cycles. (1) System Requirement Review：A review committee that approves the start of system design after verifying the consistency between business requirements andsystem requirements (2) The specifications of the Lander have been changed, so the program was conducted again.(3) Pre-Shipment Review：An review committee that verifies test results and approves transportation to the launch site (4) Launch Readiness Review：An review committee that confirms the completion of the integration work into the rocket and approves the launch and transition to initial operations. (5) Information is as of the review committee was held 2017 2018 2019 2020 2021 2022 2019/8 ΔSRR(2) 2019/10-12 ΔPDR (2) 2018/7‐8 PDR Phase B （Basic design） Phase C （Detail design） External Reviews 2022/8 PSR (3) Phase D （Production, Testing） Phase A （Concept study, conceptual design, planning decision） 2017/4 SRR (1) 2022/10 LRR (4) Examples of external experts in Mission 1 review 2023 Associate Professor Funase Tokyo University Professor Inatani, Institute of Space and Astronautical Science Professor Nakasuka, University of Tokyo 2022/12 Launch 2023/4 Challenge for Lunar landing Event Institute of Space and Astronautical Science, Professor Takashima Professor Zhao, Kyushu Institute of Technology SRR PDR CDR Other 30 Domestic and international specialists (5) Mission 1Mission2 2020/9-2021/2 CDR Phase B （Basic design） Phase C （Detail design） Phase D （Production, Testing） Phase A （Concept study, conceptual design, planning decision） 2024~ June 2025 lunar landing CDR（Critical Design Review） Review committee to verify the appropriateness of detailed design and verification plans for manufacturing and testing by utilizing evaluations of prototypes, thermal structural characteristics, electromechanical design that have been conducted. 2021/10 SRR 2022/2-7 PDR 2022/4-9 CDR launch Jan 2025 PDR（Preliminary Design Review） Review committee held to verify the feasibility of the design result and design verification plan against the specification Comparing development times of M1 and M2, the time from SRR to CDR was shortened by approx. 2 years and 11 months. Professor Inatani, Institute of Space and Astronautical Science
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Since quarterly sales fluctuate depending on the timing of the mission, our KPI is total contract amount per mission 48Sales KPI – Revenue Recognition for Payload Service FY N Q1 FY N Q2 FY N Q3 FY N Q4 FY N+1 Q1 FY N+1 Q2 FY N+1 Q3 FY N+1 Q4 FY N+2 Q1 FY N+2 Q2 Mission A Mission B Mission C Mission A Mission B Mission C Total contract amount(1) • The total contract amount will be recorded in sales through 2-3 years. The total contract amount per mission = the cumulative sales per mission. • Thus, the total contract amount is a leading indicator of future sales. • Compared to quarterly sales, how much contract amount that we have already acquired is an indicator that directly reflects our business progress. Quarterly Sales(1) • Under the cost recovery method, as shown in ① and ② above, sales are significantly increased at the timing of mission launch and mission completion. • These quarters with increased sales are due to one-time sales (costs) based on the accounting method, thus, it does not necessarily reflect the fundamental progress of our business. ①: Mission A Launch ②: Mission B Launch (1) The above graph is for illustrative purposes only and does not represent actual total contract amounts or quarterly sales.Net sales may not be fully recognized for the total contract amount depending on the success or failure of each mission.
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The impact on sales depending on mission outcome 49Sales KPI – Impact of Mission Failure (1) This does not apply in cases of material breach of contract Contracts with non-cancellable and non-refundable policies • Our payload contracts are non-cancellable due to customer reasons and non-refundable in principle, thus, there is no obligation to refund the amount that has already been paid(1) Approx. 90% of the funds will be paid before launch • On average, approx. 90% of the contract amount for all payload service agreements signed for Mission 1 through Mission 3 are paid before the launch(1) • Even if a portion of the payment milestones are after mission launch, the payment will be made as per milestone progress, regardless of mission success Mission 1 and 2 only had an 8% impact • For Mission 1, $0.7Mn out of the total contract amount of $10Mn was not recognized as net sales due to the unsuccessful lunar landing. Similarly, for Mission 2, $1.5Mn out of the $16 million contract amount was not recognized as net sales • The impact of the incomplete lunar landings was limited, averaging around 8%
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Our business model involves multiple missions, developed in parallel; feedback from the preceding mission is transferred to the subsequent mission in a timely and appropriate manner to enhance the maturity of the technology. This model is essential to build a strong financial foundation to support multiple missions at once. 50Sustainable Business Model Business Model of ispace M1 M2 M3 Fundraising Stock issue Bank loan Advances received Grants (SBIR etc.) M4 Lunar insurance development mission development mission development mission feedback feedback development mission feedback
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51IR Activities The # of individual shareholders has increased, reaching 103K as of the end of Sep. With the capital increase announced in Oct, we will advance our business with the support of even larger # of retail shareholders Number of shares issued 105,901,043 shares Number of shareholders 103,296 No. Name of Shareholder # of Shares Owned Ratio of Shares Owned 1 Takeshi Hakamada 9,000,000* 8.50 2 Incubate Fund 3 Investment Partnership LLC 5,992,580 5.66 3 Tohru Akaura 2,636,603 2.49 4 IF GROWTH OPPORTUNITY FUND 1, L.P. 2,135,720 2.02 5 Sumitomo Mitsui Trust Bank Limited 1,968,500 1.86 6 Development Bank of Japan Inc. 1,747,880 1.65 7 BNY GCM CLIENT ACCOUNT JPRD AC ISG 1,355,151 1.28 8 IF SPV I Investment Partnership 1,174,880 1.11 9 STATE STREET BANK AND TRUST COMPANY 505019 986,000 0.93 10 SHIMIZU CORPORATION 873,960 0.83 * The number and ratio of shares owned by ispace CEO & Founder, Takeshi Hakamada, have decreased by 3MM shares compared to the previous half-year period (as of Sep 30, 2024). This is pursuant to the stock lending agreement entered into with CVI Investments, Inc., the allottee under the Equity Program announced on Oct 11, 2024, the allottee borrowed 3MM shares from Mr. Hakamada as of Feb 17, 2025. Therefore, Mr. Hakamada's ownership of shares and shareholding ratio have temporarily decreased. Please note that commitment of Mr. Hakamada to the management of ispace will not be affected Major Shareholders (Top 10) as of September 30,2025# of Shares Issued and Shareholders as of September 30,2025 Classification by Type of Shareholder as of September 30,2025 76.30% 10.09% 7.54% 4.43% 1.63% 0.00% Individuals and others Overseas Other domestic corporations Financial institutions Securities firms Treasury shares
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52Financial Data – Profit and Loss Statement (1) Currently using the cost recovery method for sales recognition for Mission 1 to Mission 3, respectively, and expects sales toincrease in tandem with the increase in cost accruals since the cost accruals as cost are recognized in sales. If sales in excess of cost accruals are not booked at the time of mission completion, they will be accounted for in a lump-sum transaction. (Millions of yen) FY2024/3 FY2025/3 FY2026/3 M1 Completion M2 Launch Q1 Q2 Q3 Q4 Full-Year Q1 Q2 Q3 Q4 Full-Year Q1 Q2 Q3 Net Sales(1) 815 514 496 530 2,357 635 706 647 2,755 4,743 1,165 1,028 549 Cost of sales 243 400 377 407 1,428 528 609 483 879 2,499 934 877 1,599 Gross Profit 571 114 118 123 928 107 97 163 1,877 2,244 231 150 △1,049 Gross Profit Margin 70.1% 22.2% 23.9% 23.3% 39.4% 16.9% 13.8% 25.3% 68.1% 47.3% 19.9% 14.7% - SG&A 1,681 1,045 1,826 1,876 6,429 2,402 1,536 2,863 5,238 12,039 2,475 2,069 1,736 R&D 1,065 571 1,060 1,137 3,834 1,411 791 1,506 4,022 7,730 1,236 1,043 425 Salary and Allowance 222 208 296 269 997 475 297 413 337 1,522 518 421 633 Other 392 265 469 469 1,598 516 447 943 880 2,786 721 604 677 Operating Profit/Loss △1,109 △931 △1,707 △1,752 △5,501 △2,295 △1,439 △ 2,699 △3,362 △9,795 △2,243 △1,918 △2,786 Foreign exchange losses (gains) 288 115 △499 737 641 858 △2,223 1,896 △1,175 △644 △304 810 1,585 Other △553 △66 △125 △491 △1,237 △139 △552 △186 △18 △895 △331 △473 △580 Ordinary Profit/Loss △1,375 △882 △2,332 △1,507 △6,097 △1,576 △4,214 △989 △4,555 △11,334 △2,878 △1,581 △1,780 Net Profit/Loss △1,374 2,912 △2,374 △1,529 △2,366 △1,579 △4,812 △973 △4,581 △11,945 △2,879 △1,584 △1,783
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53Financial Data – Balance Sheet (Millions of yen) FY2024/3 FY2025/3 FY2026/3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Current Assets Total 10,078 13,525 13,485 21,784 21,220 22,527 20,181 19,067 30,742 24,953 38,598 Cash and Deposit 7,611 11,522 9,676 14,315 12,673 13,153 13,233 13,117 26,460 20,078 34,273 Short Term Advances 1,877 1,486 3,158 4,228 4,928 5,622 5,706 3,620 3,358 3,747 3,042 Non-Current Assets Total 1,756 4,878 4,828 5,248 5,341 6,018 6,649 8,121 8,221 10,183 12,219 Property and equipment 476 1,000 2,126 2,462 3,092 3,480 3,929 4,859 4,804 5,103 5,822 Long Term Advances 1,140 3,616 2,465 2,560 1,965 2,310 2,473 2,997 3,110 4,781 5,815 Total Assets Total 11,835 18,403 18,314 27,033 26,561 28,545 26,831 27,189 38,964 35,137 50,818 Current Liabilities Total 4,346 7,913 7,772 10,503 12,076 9,081 7,310 3,854 3,896 4,703 4,830 Advances Received(1) 3,265 3,932 3,618 3,190 3,214 3,758 3,305 2,695 2,320 1,938 1,991 Long Term Liabilities Total 4,871 4,877 6,866 6,784 6,471 14,081 14,907 16,326 31,293 29,329 29,412 Long Term Debt 4,570 4,570 6,570 6,538 6,224 13,830 14,701 16,096 31,095 29,177 28,979 Liability Total 9,217 12,790 14,639 17,288 18,548 23,162 22,218 20,182 35,189 34,034 33,972 Net Assets Total 2,617 5,612 3,675 9,745 8,013 5,383 4,613 7,007 3,775 1,103 16,845 Liability & Net Assets Total 11,835 18,403 18,314 27,033 26,561 28,545 26,831 27,189 38,964 35,137 50,818 (Interest-Bearing Debt) 5,029 8,020 10,020 12,518 14,054 18,083 17,231 16,096 31,595 30,867 30,669 (1) Total of contract liabilities and advance payments
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Disclaimer 54Disclaimer • This presentation was prepared by ispace, inc. (referred to as the “Company”, “ispace”, or “we” herein) solely for informational purposes. • This document contains forward-looking statements, which reflect the Company's assumptions and outlook for the future and estimates based on information available to the Company and the Company's plans and expectations as of the date of this document or other date indicated. There can be no assurance that the relevant forecasts and other forward-looking statements will be achieved. Please note that significant differences between the forecasts and other forward-looking statements and actual results may arise due to various factors, including changes or adverse outcomes in the development or operations of our missions, changes in customers' plans and needs, competition, changes in the legal and regulatory environment, and other factors. Accordingly, readers are cautioned against placing undue reliance on any such forward looking statements. Also note that this document includes information which has not been audited or reviewed by an independent certified public accountant or audit corporation, and includes financial information based on past financial statements or accounting documents as well as management figures not based on financial statements or accounting documents. The Company has no obligation to updateor revise any information contained in this document based on any subsequent developments except as required by applicable law or stock exchange rules and regulations. • This document is an English translation of the original Japanese language document and has been prepared solely for referencepurposes. No warranties or assurances are given regarding the accuracy or completeness of this English translation. In the event of any discrepancy between this English translation and the original Japanese language document, the original Japanese language document shall prevail in all respects. • Unless context is required otherwise, the financial figures used in this presentation are on a consolidated basis. • The information in connection with or prepared by companies or third parties other than the Company is based on publicly available and other information as cited, and the Company has not independently verified the accuracy or appropriateness of it, and makes no representations with respect to, any information derived from such third-party sources.