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Instinct Bio Returns to Profit in First Half of Fiscal 2026 as Yen Revenue Rises

MixedMedium impact
BIOT$0.2653 −3.74%

Instinct Bio Technical Company Holdings Inc. (BIOT) reported its financial results for the six months ended May 31, 2026, marking a return to profitability. Total revenue grew 4.7% year over year to $1,142,598, representing a 9.8% increase in Japanese yen terms. Net profit reached $90,251, recovering from a loss of $206,817 in the prior-year period, largely driven by a 30.1% decline in administrative expenses as listing-related fees did not recur.

The performance highlights customer diversification and expansion in core business lines, with revenue from original equipment manufacturing growing 6.5% in yen terms and e-commerce sales rising 12.2%. Additionally, dependence on the company's largest customer dropped from 51.7% of total revenue to 34.8%. However, gross margin contracted to 72.6% from 79.7% due to higher manufacturing overhead and new imported purchases, while cash balances remained thin at $25,565.

Management is prioritizing liquidity and margin improvement for the second half of the fiscal year. Investors should monitor several overseas initiatives slated to become operational by the end of calendar 2026, including cosmetics partnerships in the U.S. and Indonesia, a clinic launch in Jakarta, and a cancer immunotherapy representation deal in Japan and China, all aimed at generating revenue starting in fiscal 2027.

Key points

  • Revenue for 1H FY2026 rose 4.7% to $1,142,598, reflecting a 9.8% increase in Japanese yen terms.
  • Net profit reached $90,251 compared to a loss of $206,817 in the prior-year period.
  • Administrative expenses dropped 30.1% due to the non-recurrence of earlier listing expenses.
  • Gross margin declined from 79.7% to 72.6% on higher manufacturing overhead and new purchases.
  • Concentration risk eased as the largest customer's share of revenue fell from 51.7% to 34.8%.

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Questions and answers

What were Instinct Bio's financial results for 1H FY2026?

Instinct Bio reported revenue of $1,142,598, up 4.7% in U.S. dollars and 9.8% in yen terms. Net profit was $90,251, compared to a net loss of $206,817 in the same period a year earlier.

Why did Instinct Bio's administrative expenses decrease?

Administrative expenses dropped 30.1% to $741,691 primarily because approximately $208,000 in listing-related fees incurred in 1H FY2025 did not recur in 1H FY2026.

What overseas growth initiatives is Instinct Bio working on?

The company is advancing cosmetics partnerships in the U.S. and Indonesia, a clinic in Jakarta, and a cancer immunotherapy representation agreement, targeting operations by late 2026.