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Revision to earnings forecast298AGVA TECH,Inc.Information and Communications, Services and Others

Notice Regarding Revisions to Full-Year Earnings Forecasts and Reductions in Executive Compensation

The full-year earnings forecast for FY2026 December was lowered. Revenue was reduced by ¥472 million from the previous forecast, and operating profit, ordinary profit and net income were changed from profit forecasts to loss forecasts. In addition, compensation for directors and corporate auditors, excluding outside directors and outside corporate auditors, will be reduced from January through March 2027.

Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-472
¥ million
Wording
Avoiding a definitive answer
How definitive the wording is.

Revised forecast

Fiscal year ending December 2026 · Full yearPrevious forecast published Dated 13 February 2026
Net Sales2,096→1,624million
-22.5%
Operating profit31→-206million
-764.5%
Ordinary income4→-239million
-6,075.0%
Profit attributable to owners of the parent2→-242million
-12,200.0%
Net income per share0.49→-52.28Yen/sen
-10,769.4%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

Revenue is expected to fall below the initial forecast due to the longer process for winning contracts for commissioned development and consulting projects using generative AI and the extended period from delivery to acceptance, delayed advertising monetisation caused by the postponed release of the lawyer-search media platform, and sluggish site traffic and service usage for the main services. Selling, general and administrative expenses are expected to be ¥101 million below the initial forecast due to reductions in advertising and promotional expenses, among others, but this will not offset the decline in revenue and gross profit, and the company is expected to report a loss.

Previous-period resultsRevenue: ¥1,483 million; operating loss: ¥302 million; ordinary loss: ¥317 million; net loss: ¥315 million; net loss per share: ¥68.19
Consolidated / non-consolidatedNon-consolidated
Revised forecast
ItemDetails
Net Sales¥2,096 million → ¥1,624 million(-22.5%)
Operating profit¥31 million → ¥-206 million
Ordinary income¥4 million → ¥-239 million
Profit attributable to owners of the parent¥2 million → ¥-242 million
Net income per share0.49 Yen/sen → -52.28 Yen/sen
Fiscal Period CoveredFiscal year ending December 2026
Period CoveredFull year
Publication date of previous forecastDated 13 February 2026
Previous-period resultsRevenue: ¥1,483 million; operating loss: ¥302 million; ordinary loss: ¥317 million; net loss: ¥315 million; net loss per share: ¥68.19
Reason for the revisionRevenue is expected to fall below the initial forecast due to the longer process for winning contracts for commissioned development and consulting projects using generative AI and the extended period from delivery to acceptance, delayed advertising monetisation caused by the postponed release of the lawyer-search media platform, and sluggish site traffic and service usage for the main services. Selling, general and administrative expenses are expected to be ¥101 million below the initial forecast due to reductions in advertising and promotional expenses, among others, but this will not offset the decline in revenue and gross profit, and the company is expected to report a loss.
Consolidated / non-consolidatedNon-consolidated
Items this document does not state (2)
Details and amount of extraordinary lossDividend forecast revision

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.

Revenue is expected to decline because the process of winning contracts for commissioned development and consulting projects using generative AI, and the period from delivery to acceptance, took longer than expected; monetisation of advertising was delayed by the postponed release of the lawyer-search media platform; and site traffic and service usage for the main services fell below expectations. Selling, general and administrative expenses are expected to be ¥101 million below the initial forecast due to reductions in advertising and promotional expenses, among others, but this will not offset the decline in revenue and gross profit, and the company is therefore expected to report a loss. The reduction in executive compensation is intended to clarify responsibility for revising the earnings outlook and generate funds for future growth investments.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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.
Notice Regarding Revisions to Full-Year Earnings Forecasts and Reductions in Executive Compensation | GVA TECH,Inc. (298A) timely disclosure | Komori