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Financial results presentation2323fonfun corporationInformation and Communications, Services and Others

Full-Year Earnings Presentation for the Fiscal Year Ending March 2026

In the fiscal year ended March 2026, revenue and profit increased substantially, driven in part by business expansion through M&A. Operating profit, ordinary profit, net income and EBITDA all reached record highs since the Company's founding. The Company also presented earnings forecasts for the fiscal year ending March 2027, targeting further revenue and profit growth while continuing M&A.

Worth reading
48Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
2111
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,111 million+166.4%
Operating profit¥242 million+161.9%
Ordinary income¥271 million+165.6%
Net income¥424 million+250.8%
Selling, general and administrative expenses¥590 million
Results for the three months of the current quarterQuarterly trends in revenue and operating profit are presented, with standalone figures for each quarter shown in charts.
Full-year earnings forecast
Net Sales
¥3,599 million
Adjusted operating profit (EBITDA)
¥721 million
Operating profit
¥472 million
Ordinary income
¥447 million
Net income
¥446 million
EPS
¥21.26
ROE
28.6 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Achieved as planned
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Questions Can the new medium-term management plan be achieved? / Answer The Company aims to achieve the plan by pursuing discontinuous growth through new businesses and M&A, in addition to stable growth in existing businesses.
  2. Questions What action will be taken if the listing maintenance criteria are not met? / Answer The Company considers ¥10 billion in market capitalization a non-negotiable target and will consider a secondary listing if necessary.
  3. Questions Shareholder returns / Answer The Company changed its policy to prioritize investment, but will pay a commemorative dividend as it expects to secure distributable amounts. It is also considering the cancellation of treasury shares.
  4. Questions Transition to IFRS / Answer The Company plans to continue using Japanese GAAP for the time being.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Expansion of business scale through M&A, reorganization of existing businesses, the shift to a stock and recurring revenue model, operational and profit improvements, and a ¥142 million gain in income taxes—deferred resulting from the recognition of ¥218 million in deferred tax assets
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The Company will continue M&A, targeting profitable businesses with a payback period of no more than 5 years as its acquisition criteria. M&A targets are generally expected to have an EBITDA multiple of no more than 5x and must be profitable.
New initiatives
  • Continue M&A focused on the DX and IT sectors
  • Focus on AI consulting, AI solutions and contracted AI development, among other areas
  • The second medium-term management plan is scheduled to be announced on 25 May 2026
Key KPIsA metric the company considers important as a management benchmark.
  • Number of engineers220 people
  • Consolidated number of employees280 people
  • Cumulative number of M&A transactions11 Engagements
  • M&A transactions during the period1 Engagements
  • Equity ratio40.7 %
  • ROE31.8 %
Segment results
DX Solutions Business
Percentage of revenue55 %
Cloud Solutions business
Percentage of revenue45 %
Medium-term management plan targets
Plan nameProject Phoenix
Target fiscal yearFiscal year ending March 2026
Target value
  • 100 engineers
  • ¥10 billion market capitalization
  • ¥2 billion consolidated revenue
  • ¥400 million EBITDA
Comparison with actual resultsAll targets achieved
Number of employees
Number of Employees280 consolidated and 123 non-consolidated employees as of 31 March 2026
Change during the periodThe Company explained that its workforce had expanded from 30 people when the revitalization process began to a consolidated organization of approximately 300 people.
Acquisition of treasury shares
The Company explained that it is considering the cancellation of treasury shares. The acquisition limit, number of shares and period were not disclosed.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥2,111 million (YoY +166.4%)
Operating profit¥242 million (YoY +161.9%)
Ordinary income¥271 million (YoY +165.6%)
Net income¥424 million (YoY +250.8%)
Selling, general and administrative expenses¥590 million
Results for the three months of the current quarterQuarterly trends in revenue and operating profit are presented, with standalone figures for each quarter shown in charts.
Full-year earnings forecastNet Sales ¥3,599 million / Adjusted operating profit (EBITDA) ¥721 million / Operating profit ¥472 million / Ordinary income ¥447 million / Net income ¥446 million / EPS ¥21.26 / ROE 28.6 %
Self-assessment against the planAchieved as planned
Segment resultsDX Solutions Business Percentage of revenue 55 % / Profit Not disclosed / Cloud Solutions business Percentage of revenue 45 % / Profit Not disclosed
Breakdown of Factors Affecting the ChangeExpansion of business scale through M&A, reorganization of existing businesses, the shift to a stock and recurring revenue model, operational and profit improvements, and a ¥142 million gain in income taxes—deferred resulting from the recognition of ¥218 million in deferred tax assets
Key KPIsNumber of engineers 220 people, Consolidated number of employees 280 people, Cumulative number of M&A transactions 11 Engagements, M&A transactions during the period 1 Engagements, Equity ratio 40.7 %, ROE 31.8 %
Number of employeesNumber of Employees 280 consolidated and 123 non-consolidated employees as of 31 March 2026 / Change during the period The Company explained that its workforce had expanded from 30 people when the revitalization process began to a consolidated organization of approximately 300 people.
Assumptions Underlying the Business OutlookThe Company will continue M&A, targeting profitable businesses with a payback period of no more than 5 years as its acquisition criteria. M&A targets are generally expected to have an EBITDA multiple of no more than 5x and must be profitable.
Medium-term management plan targetsPlan name Project Phoenix / Target fiscal year Fiscal year ending March 2026 / Target value 100 engineers, ¥10 billion market capitalization, ¥2 billion consolidated revenue, ¥400 million EBITDA / Comparison with actual results All targets achieved
Acquisition of treasury sharesThe Company explained that it is considering the cancellation of treasury shares. The acquisition limit, number of shares and period were not disclosed.
Key points of the Q&AQuestions Can the new medium-term management plan be achieved? / Answer The Company aims to achieve the plan by pursuing discontinuous growth through new businesses and M&A, in addition to stable growth in existing businesses., Questions What action will be taken if the listing maintenance criteria are not met? / Answer The Company considers ¥10 billion in market capitalization a non-negotiable target and will consider a secondary listing if necessary., Questions Shareholder returns / Answer The Company changed its policy to prioritize investment, but will pay a commemorative dividend as it expects to secure distributable amounts. It is also considering the cancellation of treasury shares., Questions Transition to IFRS / Answer The Company plans to continue using Japanese GAAP for the time being.
New initiativesContinue M&A focused on the DX and IT sectors, Focus on AI consulting, AI solutions and contracted AI development, among other areas, The second medium-term management plan is scheduled to be announced on 25 May 2026
Items this document does not state (12)
Gross Profit MarginOperating profit marginProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioCapital expendituresOrders received and order backlogMarket Size / Share

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.

The Company completed 5 M&A transactions in the fiscal year ended March 2026, expanding the scale of its cloud solutions and DX solutions businesses. It also cited the reorganization of existing businesses, the shift to a stock and recurring revenue model, operational and profit improvements, and progress in post-acquisition integration as contributing factors. For net income, the recognition of ¥218 million in deferred tax assets resulted in a ¥142 million gain in income taxes—deferred, contributing to profit growth.

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Full-Year Earnings Presentation for the Fiscal Year Ending March 2026 | fonfun corporation (2323) timely disclosure | Komori