Supplementary Explanation of Financial Results for the First Quarter of the Fiscal Year Ending December 2026 | SOLITON SYSTEMS K.K. (3040) timely disclosure

Worth reading

79Important

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

53.2

Year-on-year change in operating profit (%)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending December 202613 items taken from the company’s own explanation

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

Net Sales¥5,165 million+12.7%

Operating profit¥908 million+53.2%

Ordinary income¥949 million+79.7%

Net income¥685 million+71.1%

Gross Profit Margin48.8 %

Operating profit margin17.6 %

Selling, general and administrative expenses¥1,609 million

Results for the three months of the current quarter

Net Sales

¥5,165 million

Gross profit

¥2,518 million

Operating profit

¥908 million

Ordinary income

¥949 million

Profit attributable to owners of parent for the quarter

¥685 million

Full-year earnings forecast

Net Sales

¥21,200 million

Operating profit

¥3,150 million

Ordinary income

¥3,200 million

Profit attributable to owners of the parent

¥2,350 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Net Sales24.4%

Operating profit28.9%

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Progress is running ahead of the Company's plan

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

Revenue increase¥580 million
Increase in costs of sales¥-167 million
Increase in selling, general and administrative expenses¥-96 million

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

Information available at present and certain assumptions deemed reasonable

New initiatives

Launch of the Soliton OneGate PKI Plan for EPS
Release of SmartOn ID Cloud
Price revisions for certain Soliton OneGate plans and upgrade licenses
Strengthening collaboration with 網屋, Panasonic Connect, NEC and IIJ
Provision of access-control integration functionality through centralized facial-recognition management
Product provision for the IIJ Network Authentication Solution with Soliton
Product provision for security solutions for medical institutions and pharmacies
Provision of a new version of Soliton OneGate
Development platform and demonstration environment for vehicles equipped with the ADENU autonomous driving system
Development and launch of analog edge AI chips

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

Domestic share of the RADIUS appliance marketNo.1
Year on year against the same period last yearMore than 20 consecutive years
Number of Zao series units delivered to the public sector23 Units
Autonomous driving system demonstration results3 Vehicle models, 10 regions
Power consumption of analog edge AI chipsSeveral hundred
Number of employees655 people

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

ARPU

Segment results

IT Security

Net Sales

¥4,850 million+12.6%

Segment profit

¥1,169 million+45.2%

Visual Communications

Net Sales

¥267 million+18.1%

Segment Profit or Loss

¥-60 million

Eco New Business Development

Net Sales

¥47 million-5.0%

Segment Profit or Loss

¥-55 million

Medium-term management plan targets

Target fiscal year2028

Net Sales¥24.5 billion

Operating profit¥5 billion

Operating profit margin20.4%

EPS¥184

ROE20.0%

Financial targets

ROE

FY26 target16.9%

FY27 target17.5%

FY28 target20.0%

Equity ratio

Actual results53.2%

Market Size / Share

ShareNo. 1 domestic share in the RADIUS appliance market (more than 20 consecutive years)

Number of employees

Number of Employees655 people

Record dateAs of 31 December 2025, consolidated

Annual Dividend

Annual dividend per share¥60.00 per share (planned)

Interim Dividend¥30.00 per share

Year-end dividend¥30.00 per share

Payout ratio

Rate47.3% (forecast)

Shareholder Equity Dividend Ratio7.8% (forecast)

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	First quarter of the fiscal year ending December 2026
Net Sales	¥5,165 million (YoY +12.7%)
Operating profit	¥908 million (YoY +53.2%)
Ordinary income	¥949 million (YoY +79.7%)
Net income	¥685 million (YoY +71.1%)
Gross Profit Margin	48.8 %
Operating profit margin	17.6 %
Selling, general and administrative expenses	¥1,609 million
Results for the three months of the current quarter	Net Sales ¥5,165 million / Gross profit ¥2,518 million / Operating profit ¥908 million / Ordinary income ¥949 million / Profit attributable to owners of parent for the quarter ¥685 million
Full-year earnings forecast	Net Sales ¥21,200 million / Operating profit ¥3,150 million / Ordinary income ¥3,200 million / Profit attributable to owners of the parent ¥2,350 million
Progress against full-year forecast	Net Sales 24.4% / Operating profit 28.9%
Self-assessment against the plan	Progress is running ahead of the Company's plan
Segment results	IT Security Net Sales ¥4,850 million (YoY +12.6%) / Segment profit ¥1,169 million (YoY +45.2%) / Visual Communications Net Sales ¥267 million (YoY +18.1%) / Segment Profit or Loss ¥-60 million / Eco New Business Development Net Sales ¥47 million (YoY -5.0%) / Segment Profit or Loss ¥-55 million
Breakdown of Factors Affecting the Change	Factors Revenue increase / Amount ¥580 million, Factors Increase in costs of sales / Amount ¥-167 million, Factors Increase in selling, general and administrative expenses / Amount ¥-96 million
Key KPIs	Indicator name Domestic share of the RADIUS appliance market / Value No.1 / Year on year against the same period last year More than 20 consecutive years, Indicator name Number of Zao series units delivered to the public sector / Value 23 Units / Year on year against the same period last year Not disclosed, Indicator name Autonomous driving system demonstration results / Value 3 Vehicle models, 10 regions / Year on year against the same period last year Not disclosed, Indicator name Power consumption of analog edge AI chips / Value Several hundred / Year on year against the same period last year Not disclosed, Indicator name Number of employees / Value 655 people / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Indicator name ARPU / Value Not disclosed / Year on year against the same period last year Not disclosed
Number of employees	Number of Employees 655 people / Record date As of 31 December 2025, consolidated / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business Outlook	Information available at present and certain assumptions deemed reasonable
Medium-term management plan targets	Target fiscal year 2028 / Net Sales ¥24.5 billion / Operating profit ¥5 billion / Operating profit margin 20.4% / EPS ¥184 / ROE 20.0%
Financial targets	ROE FY26 target 16.9% / FY27 target 17.5% / FY28 target 20.0% / Equity ratio Actual results 53.2%
Annual Dividend	Annual dividend per share ¥60.00 per share (planned) / Interim Dividend ¥30.00 per share / Year-end dividend ¥30.00 per share
Payout ratio	Rate 47.3% (forecast) / Shareholder Equity Dividend Ratio 7.8% (forecast)
Market Size / Share	Market Size Not disclosed / Share No. 1 domestic share in the RADIUS appliance market (more than 20 consecutive years)
New initiatives	Launch of the Soliton OneGate PKI Plan for EPS, Release of SmartOn ID Cloud, Price revisions for certain Soliton OneGate plans and upgrade licenses, Strengthening collaboration with 網屋, Panasonic Connect, NEC and IIJ, Provision of access-control integration functionality through centralized facial-recognition management, Product provision for the IIJ Network Authentication Solution with Soliton, Product provision for security solutions for medical institutions and pharmacies, Provision of a new version of Soliton OneGate, Development platform and demonstration environment for vehicles equipped with the ADENU autonomous driving system, Development and launch of analog edge AI chips

Items this document does not state (6)

Number of stores and locationsRisk amount incorporated into the outlookAcquisition 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.

Sales of the Company's products and services were strong, particularly in the IT security business, with NetAttest EPS showing especially strong growth. The increase in sales of the Company's high-margin products and services exceeded the increases in cost of sales and selling, general and administrative expenses.

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.