Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | GVA TECH,Inc. (298A) timely disclosure

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54Recurring

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Direction

Mixed performance

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Scale

420

¥ million

Wording

Conditional

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Contents of this document

Financial results presentationSecond quarter of the fiscal year ending December 20267 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥820 million+9.7%

Operating profit¥-123 million

Ordinary income¥-136 million

Net income¥-137 million

Gross Profit Margin63.7 %

Selling, general and administrative expenses¥645 million

Results for the three months of the current quarter

Net Sales

¥420 million+7.7%

Gross profit

¥270 million+12.5%

Operating loss

¥-67 million

Ordinary loss

¥-74 million

Net loss for the period

¥-75 million

Full-year earnings forecast

Net Sales

¥2,096 million

Gross profit

¥1,406 million

Gross Profit Margin

67.1 %

Selling, general and administrative expenses

¥1,375 million

Operating profit

¥31 million

Ordinary income

¥4 million

Net income for the current fiscal year

¥2 million

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Increase in salesGrowth in the LegalTech SaaS business

Factors contributing to operating loss

Increase in gross profit

¥30 million

Increase in selling, general and administrative expenses

¥39 million

Key cost driversRecruiting costs and other expenses associated with increasing headcount

Factors behind the decline in the Registration Services businessImpact of AI search

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Seasonality of new ordersFirst quarter soft, second quarter solid, third and fourth quarters normal

Timing of profitabilityExpected to become profitable from the Q3 accounting period

New initiatives

Launched GVA Executive Agent, a recruitment service specializing in legal professionals
Began offering MCP server support for OLGA
Began offering GVA Labor Documents
Released OLGA for Agentforce

Key KPIsA metric the company considers important as a management benchmark.

ARR¥970 million+21.7%
Net Revenue Churn Rate0.75 %
Number of companies using OLGA618 companies
Number of customers with implementations exceeding ¥200,000112 companies
Cumulative number of customer companies using the service33,698 companies+22.1%
Repeat usage rate35.3 %
Subscription revenue ratioAt least 90%

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Average customer spend (monthly)¥130 thousand+22.4%
Average customer spend among companies using multiple modules¥263 thousand
Number of service uses3,524 Engagements-18.6%
Cumulative number of customer companies using the service33,698 companies+22.1%

Segment results

LegalTech SaaS Business

Net Sales

¥491 million+23.8%

Registration Business

Net Sales

¥329 million-6.2%

Market Size / Share

For business departments4,155 Hundreds of millions of yen
Legal procedures6,997 Hundreds of millions of yen
For attorneys and law firms¥73.1 billion plus additional opportunity
Patent attorneys1,806 Hundreds of millions of yen
Administrative scriveners622 Hundreds of millions of yen
Social insurance and labor attorneys1,714 Hundreds of millions of yen

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Second quarter of the fiscal year ending December 2026
Net Sales	¥820 million (YoY +9.7%)
Operating profit	¥-123 million
Ordinary income	¥-136 million
Net income	¥-137 million
Gross Profit Margin	63.7 %
Selling, general and administrative expenses	¥645 million
Results for the three months of the current quarter	Net Sales ¥420 million (YoY +7.7%) / Gross profit ¥270 million (YoY +12.5%) / Operating loss ¥-67 million / Ordinary loss ¥-74 million / Net loss for the period ¥-75 million
Full-year earnings forecast	Net Sales ¥2,096 million / Gross profit ¥1,406 million / Gross Profit Margin 67.1 % / Selling, general and administrative expenses ¥1,375 million / Operating profit ¥31 million / Ordinary income ¥4 million / Net income for the current fiscal year ¥2 million
Segment results	LegalTech SaaS Business Net Sales ¥491 million (YoY +23.8%) / Profit Not disclosed / Registration Business Net Sales ¥329 million (YoY -6.2%) / Profit Not disclosed
Breakdown of Factors Affecting the Change	Increase in sales Growth in the LegalTech SaaS business / Factors contributing to operating loss Increase in gross profit ¥30 million / Increase in selling, general and administrative expenses ¥39 million / Key cost drivers Recruiting costs and other expenses associated with increasing headcount / Factors behind the decline in the Registration Services business Impact of AI search
Key KPIs	ARR ¥970 million (YoY +21.7%), Net Revenue Churn Rate 0.75 %, Number of companies using OLGA 618 companies, Number of customers with implementations exceeding ¥200,000 112 companies, Cumulative number of customer companies using the service 33,698 companies (YoY +22.1%), Repeat usage rate 35.3 %, Subscription revenue ratio At least 90%
Unit price and quantity metrics	Average customer spend (monthly) ¥130 thousand (YoY +22.4%), Average customer spend among companies using multiple modules ¥263 thousand, Number of service uses 3,524 Engagements (YoY -18.6%), Cumulative number of customer companies using the service 33,698 companies (YoY +22.1%)
Assumptions Underlying the Business Outlook	Seasonality of new orders First quarter soft, second quarter solid, third and fourth quarters normal / Timing of profitability Expected to become profitable from the Q3 accounting period
Market Size / Share	For business departments 4,155 Hundreds of millions of yen, Legal procedures 6,997 Hundreds of millions of yen, For attorneys and law firms ¥73.1 billion plus additional opportunity, Patent attorneys 1,806 Hundreds of millions of yen, Administrative scriveners 622 Hundreds of millions of yen, Social insurance and labor attorneys 1,714 Hundreds of millions of yen
New initiatives	Launched GVA Executive Agent, a recruitment service specializing in legal professionals, Began offering MCP server support for OLGA, Began offering GVA Labor Documents, Released OLGA for Agentforce

Items this document does not state (14)

Operating profit marginProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey 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.

The increase in revenue was driven by growth in the LegalTech SaaS business. The continued operating loss was due to higher selling, general and administrative expenses, including recruiting costs associated with increasing headcount. The decline in revenue and usage in the Registration Services business has been attributed in part to the impact of AI search.

How to read this page

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