Instinct Bio Technical Company Holdings Inc. (Nasdaq: BIOT), a Tokyo-based developer, manufacturer, and seller of stem-cell-based and regenerative-medicine-related cosmetics and health products, announced unaudited financial results for the six months ended May 31, 2026, showing a return to profitability and revenue growth of 9.8% in yen terms. The results, furnished to the U.S. Securities and Exchange Commission on Form 6-K, cover the operating group that became wholly owned subsidiaries of the company on July 23, 2026, and exclude predecessor Relativity Holdings Inc. and business combination costs.
Revenue for the first half of fiscal 2026 reached USD 1,142,598, up 4.7% in U.S. dollar terms and 9.8% in yen terms, from JPY 163.7 million to JPY 179.8 million. The growth was led by the OEM/ODM segment, which accounted for 83.4% of total revenue and increased 6.5% in yen terms, and by the Value Village direct-to-consumer e-commerce segment, which rose 12.2%. Other segments showed mixed results: Genrever Clinic support revenue declined 3.5%, while Value Athlete surged 552.4% and overseas revenue jumped 203.6%.
Profit after tax was USD 90,251, compared to a loss of USD 206,817 in the prior-year period. Administrative expenses fell 30.1% to USD 741,691, largely because approximately USD 208,000 in listing-related fees expensed in the first half of fiscal 2025 did not recur. Gross margin decreased to 72.6% from 79.7%, which the company attributed to a smaller inventory build, new imported purchases, and higher manufacturing overhead. Net cash used in operating activities was USD 12,323, a significant improvement from USD 371,404 a year earlier.
The company also highlighted a reduction in customer concentration: its largest customer’s share of revenue fell to 34.8% from 51.7%, as new OEM/ODM, export, and Value Athlete customers were added. At May 31, 2026, total assets were USD 4,080,414, total liabilities USD 1,994,227, and total equity USD 2,086,187. Cash and bank balances stood at USD 25,565, down from USD 124,764 at November 30, 2025, with no bank borrowings. The operating group’s liquidity depends on collecting receivables, continued support from directors and related parties, and additional financing as needed. Management concluded that the group has adequate resources to continue as a going concern for at least twelve months.
“This is the first set of results we have reported since completing our Nasdaq listing in July,” said Tomoki Nagano, Chairman and Chief Executive Officer. “Revenue grew almost 10% in yen terms, we returned to profit, and our customer base is broader than a year ago. We are not satisfied with our gross margin or cash position, and improving both is our priority for the second half.”
Nagano also noted that overseas initiatives announced since July—including a U.S. collaboration with INVITRX, an Indonesian product partnership, the GENREVER Clinic in Jakarta, and IN01 representation—are progressing on schedule. These initiatives did not contribute to first-half revenue but are targeted to be operational by the end of calendar 2026, with revenue contribution expected from fiscal 2027, subject to definitive agreements, regulatory approvals, and partner performance.
The full financial statements and management’s discussion and analysis are available in the Form 6-K furnished on October 16, 2026, at www.sec.gov. For more information about the company, visit https://instinct-biot.com.
The return to profitability and revenue growth could signal improving operational efficiency for Instinct Bio, but challenges remain. The lower gross margin and thin cash position underscore the need for successful execution of overseas initiatives and continued support from related parties. For investors, the reduced customer concentration is a positive sign of diversification, yet the company’s reliance on related-party financing and the need to regain compliance with Nasdaq listing requirements pose risks. The announcement provides transparency into the company’s financial health and strategic direction, which may impact its stock performance and investor confidence in the regenerative medicine and cosmetics sector.
