Intelligence Online reported in April that the Japanese government has agreed to provide SAR imagery from iQPS (TYO: 5595) to Ukraine for its war effort. This development is significant for iQPS, which has reportedly struggled attracting international sales. While not a direct international customer, this agreement could potentially double iQPS’s revenue. Following this report, iQPS stock surged, rising steadily by over 75%.
iQPS satellites operate in inclined orbits, passing over Japan approximately twice daily. Previously, the Japanese government presumably purchased iQPS’s SAR imagery for each pass. With no international customers, this left iQPS satellite imaging capacity over other parts of the Earth seemingly unsold. (What a waste, right?) However, with Japan now procuring imagery taken over Ukraine, this could be no more. If iQPS satellites acquire imagery at every pass adjacent to Ukraine, the company could potentially double the number of sold SAR imagery sets.
It’s worth noting that Rocket Lab launches iQPS satellites into 42° inclined orbits. While optimized for imaging Japan, it is unclear how much coverage such orbits may offer over Ukraine. 42° inclined satellites reach as far north as 42° latitude while on orbit. Kyiv is at around 50° North latitude, Odesa 46° North. Trigonometry suggests iQPS satellites should still be able to cover Southern Ukraine with grazing angles less than 45°. Such angles typically still offer sufficiently high-resolution SAR imagery.
Whether iQPS’s revenue doubles compared to its previous business model remains to be seen. Investors will likely have to await the financial results for the quarter ending August 2025 for clarification. Regardless of the exact increase, iQPS appears to be on track for a near-doubling of its stock price. iQPS stock now trades at 2,165 yen per share, up 450% from its year and half ago IPO price of 390 yen.