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Earnings presentation173AHammock Inc.Information and Communications, Services and Others

Full-Year Financial Results Presentation for the Fiscal Year Ending March 2026

For the fiscal year ending March 2026, net sales increased, driven by growth in cloud services and other factors. Operating income and net income also increased, partly due to a relative decline in fixed costs. Meanwhile, revenue from the AI Data Entry Solution declined as customers migrated from on-premises systems to the cloud and usage-based fees decreased.

Worth reading
81Important
Scored from 3 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
3.9
Year-on-year change in revenue (%)
Wording
Definitive
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 2026, full year6 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,889 million+3.9%
Operating profit¥834 million+5.5%
Ordinary income¥867 million+4.7%
Net income¥685 million+10.9%
Gross Profit Margin43.3 %
Operating profit margin17.1 %
Selling, general and administrative expenses¥1,281 million
Full-year earnings forecast
Fiscal year ending March 2026 plan
Net Sales
¥5,119 million
Gross profit
¥2,253 million
Selling, general and administrative expenses
¥1,382 million
Operating profit
¥870 million
Ordinary income
¥890 million
Net income for the current fiscal year
¥626 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue increase¥181 million
  • Personnel expenses (cost of sales)¥7 million
  • Outsourcing expenses (cost of sales)¥-34 million
  • Depreciation and amortization (cost of sales)¥169 million
  • Other (cost of sales)¥-13 million
  • Personnel expenses (SG&A)¥18 million
  • Advertising expenses¥-9 million
  • Other SG&A expenses¥0 million
  • Increase in operating profit¥43 million
New initiatives
  • Enhancement and accelerated adoption of AssetView Cloud+
  • Launch of an MDR service using AssetView Cloud+ and SentinelOne Singularity
  • Release of the risk detection option for AssetView Cloud+
  • Expansion of HotProfile functionality into the AI agent and AI assistant fields
  • DX OCR support for standardized chain-store invoices
  • Release of the smartphone OCR app version of DX OCR
Key KPIsA metric the company considers important as a management benchmark.
  • Company-wide recurring revenue ARR¥4,324 million
    Year-on-year (%)9
  • Recurring revenue ratio84.3 %
  • Network Solutions cloud services ARR¥1,531 million
    Year-on-year (%)32.4
  • Sales DX Solutions ARR (excluding OEM)¥1,181 million
    Year-on-year (%)10.2
  • Cloud services revenue ratio for Network Solutions43 %
  • Churn rate for Network Solutions0.35 %
  • Sales DX Solutions churn rate (excluding OEM)0.77 %
Segment results
  • Network Solutions
    Net Sales¥3,138 million
    Year-on-year (%)9.5
  • Sales DX Solutions
    Net Sales¥1,355 million
    Year-on-year (%)-0.4
  • AI Data Entry Solutions
    Net Sales¥395 million
    Year-on-year (%)-17.6
Number of employees
Full-time employees only
Number of Employees218 people
As ofEnd of March 2026
Annual Dividend
Annual dividend per share¥40
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥4,889 million (YoY +3.9%)
Operating profit¥834 million (YoY +5.5%)
Ordinary income¥867 million (YoY +4.7%)
Net income¥685 million (YoY +10.9%)
Gross Profit Margin43.3 %
Operating profit margin17.1 %
Selling, general and administrative expenses¥1,281 million
Full-year earnings forecastSubject Fiscal year ending March 2026 plan / Net Sales ¥5,119 million / Gross profit ¥2,253 million / Selling, general and administrative expenses ¥1,382 million / Operating profit ¥870 million / Ordinary income ¥890 million / Net income for the current fiscal year ¥626 million
Segment resultsSegment Network Solutions / Net Sales ¥3,138 million / Year-on-year (%) 9.5, Segment Sales DX Solutions / Net Sales ¥1,355 million / Year-on-year (%) -0.4, Segment AI Data Entry Solutions / Net Sales ¥395 million / Year-on-year (%) -17.6
Breakdown of Factors Affecting the ChangeFactors Revenue increase / Amount ¥181 million, Factors Personnel expenses (cost of sales) / Amount ¥7 million, Factors Outsourcing expenses (cost of sales) / Amount ¥-34 million, Factors Depreciation and amortization (cost of sales) / Amount ¥169 million, Factors Other (cost of sales) / Amount ¥-13 million, Factors Personnel expenses (SG&A) / Amount ¥18 million, Factors Advertising expenses / Amount ¥-9 million, Factors Other SG&A expenses / Amount ¥0 million, Factors Increase in operating profit / Amount ¥43 million
Key KPIsIndicator name Company-wide recurring revenue ARR / Value ¥4,324 million / Year-on-year (%) ¥9 million, Indicator name Recurring revenue ratio / Value 84.3 %, Indicator name Network Solutions cloud services ARR / Value ¥1,531 million / Year-on-year (%) ¥32.4 million, Indicator name Sales DX Solutions ARR (excluding OEM) / Value ¥1,181 million / Year-on-year (%) ¥10.2 million, Indicator name Cloud services revenue ratio for Network Solutions / Value 43 %, Indicator name Churn rate for Network Solutions / Value 0.35 %, Indicator name Sales DX Solutions churn rate (excluding OEM) / Value 0.77 %
Number of employeesNumber of Employees 218 people / As of End of March 2026 / Subject Full-time employees only
Annual DividendAnnual dividend per share ¥40
New initiativesEnhancement and accelerated adoption of AssetView Cloud+, Launch of an MDR service using AssetView Cloud+ and SentinelOne Singularity, Release of the risk detection option for AssetView Cloud+, Expansion of HotProfile functionality into the AI agent and AI assistant fields, DX OCR support for standardized chain-store invoices, Release of the smartphone OCR app version of DX OCR
Items this document does not state (15)
Results for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Factors contributing to higher profit included increased net sales, accelerated adoption of cloud services, renewals and upselling among existing customers, and a relative decline in fixed costs accompanying the increase in net sales. The company cited the recognition of a ¥129 million gain on the sale of investment securities and a ¥48 million gain on the redemption of investment securities as reasons for the increase in net income.

How to read this page

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Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Full-Year Financial Results Presentation for the Fiscal Year Ending March 2026 | Hammock Inc. (173A) timely disclosure | Komori