Worth reading
74In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
83
¥ million (year-on-year decline in consolidated operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥9,847 million+5.0%
Operating profit¥624 million-11.7%
Ordinary income¥562 million-20.4%
Net income¥358 million-22.7%
Operating profit margin6.3 %
Selling, general and administrative expenses¥1,972 million
Gross Profit MarginApproximately 26.4% (gross profit of ¥2,597 million ÷ revenue of ¥9,847 million). No year-on-year change was indicated.
Results for the three months of the current quarterRevenue of ¥9,847 million, operating profit of ¥624 million, ordinary profit of ¥562 million, and net profit attributable to owners of the parent of ¥358 million, all for Q1 FY ending March 2027 only
Full-year earnings forecast
Net Sales
¥41,080 million
Operating profit
¥2,730 million
Ordinary income
¥2,730 million
Profit attributable to owners of the parent
¥1,850 million
DH Group revenue
¥25,380 million
AGEST Group revenue
¥15,700 million
DH Group operating profit
¥2,270 million
AGEST Group operating profit
¥530 million
CVC-related operating profit
¥-70 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Consolidated revenue and consolidated operating profit are both progressing broadly in line with the company’s plan. The AGEST Group business is slightly below the company’s expectations.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
DH Group EBITDA
Increase in gross profit from higher sales15
Improving Gross Margin9
Increase in selling, general and administrative expenses-48
Impact of M&A112
AGEST Group EBITDA
Decrease in gross profit from lower sales-60
Decline in gross margin-62
Control of SG&A expenses25
New initiatives
- Acquisition of the game debugging business from IMAGICA GEEQ Co., Ltd.
- Joint development of an autonomous AI cybersecurity platform with U.S.-based Lazarus Enterprises, Inc.
- Establishment of a CVC division, with annual investments targeted at ¥500 million
- Establishment of a department overseeing global operations
- Decision to hold the GeeSPORTS JAPAN CHAMPIONSHIP 2026
Key KPIsA metric the company considers important as a management benchmark.
- Number of customers ordering QA solutions773 companiesYear on year against the same period last yearIncreased from 734 companies in Q1 FY ending March 2026
- Average annual customer spend on QA solutions¥16 millionYear on year against the same period last yearDecreased from ¥19 million in Q1 FY ending March 2026
- Number of QA solutions engineers1,053 PeopleYear on year against the same period last yearDecreased from 1,083 in Q1 FY ending March 2026
Unit price and quantity metricsThese figures show sales broken down by price and volume.
773 customers ordering QA solutions, with average annual customer spend of ¥16 million. The customer breakdown was domestic +74 and overseas -35.Segment results
DH Group
Net Sales
¥6,180 million+12.1%
Segment profit
¥688 million+7.4%
EBITDA
¥827 million+12.0%
AGEST Group
Net Sales
¥3,690 million-5.8%
Segment Profit or Loss
¥-60 million
EBITDA
¥66 million-59.5%
CVC-Related Business
Net Sales
¥0 million
Segment profit
¥-2 million
EBITDA
¥-2 million
Financial targets
Not disclosed (ROE, equity ratio and D/E ratio are provided as actual figures)Number of stores and locations
The countries and regions of major locations are provided, but the number of locations at period-end and the number of openings and closures during the period are not disclosed.Number of employees
The total number of employees in the group is not disclosed. QA solutions engineers numbered 1,053, comprising domestic +5 and overseas -35.Annual Dividend
The company will pay no dividend for FY ending March 2027, conditional on the successful completion of the tender offer. The interim and year-end breakdown is not disclosed.Acquisition of treasury shares
Not disclosed (the tender offer price is ¥1,060 per share and the minimum planned purchase is 5,922,743 shares, but this is not a share buyback by the company)| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥9,847 million (YoY +5.0%) |
| Operating profit | ¥624 million (YoY -11.7%) |
| Ordinary income | ¥562 million (YoY -20.4%) |
| Net income | ¥358 million (YoY -22.7%) |
| Gross Profit Margin | Approximately 26.4% (gross profit of ¥2,597 million ÷ revenue of ¥9,847 million). No year-on-year change was indicated. |
| Operating profit margin | 6.3 % |
| Selling, general and administrative expenses | ¥1,972 million |
| Results for the three months of the current quarter | Revenue of ¥9,847 million, operating profit of ¥624 million, ordinary profit of ¥562 million, and net profit attributable to owners of the parent of ¥358 million, all for Q1 FY ending March 2027 only |
| Full-year earnings forecast | Net Sales ¥41,080 million / Operating profit ¥2,730 million / Ordinary income ¥2,730 million / Profit attributable to owners of the parent ¥1,850 million / DH Group revenue ¥25,380 million / AGEST Group revenue ¥15,700 million / DH Group operating profit ¥2,270 million / AGEST Group operating profit ¥530 million / CVC-related operating profit ¥-70 million |
| Self-assessment against the plan | Consolidated revenue and consolidated operating profit are both progressing broadly in line with the company’s plan. The AGEST Group business is slightly below the company’s expectations. |
| Segment results | DH Group Net Sales ¥6,180 million (YoY +12.1%) / Segment profit ¥688 million (YoY +7.4%) / EBITDA ¥827 million (YoY +12.0%) / AGEST Group Net Sales ¥3,690 million (YoY -5.8%) / Segment Profit or Loss ¥-60 million / EBITDA ¥66 million (YoY -59.5%) / CVC-Related Business Net Sales ¥0 million / Segment profit ¥-2 million / EBITDA ¥-2 million |
| Breakdown of Factors Affecting the Change | DH Group EBITDA Increase in gross profit from higher sales 15 / Improving Gross Margin 9 / Increase in selling, general and administrative expenses -48 / Impact of M&A 112 / AGEST Group EBITDA Decrease in gross profit from lower sales -60 / Decline in gross margin -62 / Control of SG&A expenses 25 |
| Key KPIs | Indicator name Number of customers ordering QA solutions / Value 773 companies / Year on year against the same period last year Increased from 734 companies in Q1 FY ending March 2026, Indicator name Average annual customer spend on QA solutions / Value ¥16 million / Year on year against the same period last year Decreased from ¥19 million in Q1 FY ending March 2026, Indicator name Number of QA solutions engineers / Value 1,053 People / Year on year against the same period last year Decreased from 1,083 in Q1 FY ending March 2026 |
| Unit price and quantity metrics | 773 customers ordering QA solutions, with average annual customer spend of ¥16 million. The customer breakdown was domestic +74 and overseas -35. |
| Number of stores and locations | The countries and regions of major locations are provided, but the number of locations at period-end and the number of openings and closures during the period are not disclosed. |
| Number of employees | The total number of employees in the group is not disclosed. QA solutions engineers numbered 1,053, comprising domestic +5 and overseas -35. |
| Financial targets | Not disclosed (ROE, equity ratio and D/E ratio are provided as actual figures) |
| Annual Dividend | The company will pay no dividend for FY ending March 2027, conditional on the successful completion of the tender offer. The interim and year-end breakdown is not disclosed. |
| Acquisition of treasury shares | Not disclosed (the tender offer price is ¥1,060 per share and the minimum planned purchase is 5,922,743 shares, but this is not a share buyback by the company) |
| New initiatives | Acquisition of the game debugging business from IMAGICA GEEQ Co., Ltd., Joint development of an autonomous AI cybersecurity platform with U.S.-based Lazarus Enterprises, Inc., Establishment of a CVC division, with annual investments targeted at ¥500 million, Establishment of a department overseeing global operations, Decision to hold the GeeSPORTS JAPAN CHAMPIONSHIP 2026 |
Items this document does not state (9)
Progress against full-year forecastAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioCapital 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.Revenue increased due to continued strong performance in domestic debugging, orders for Nintendo Switch 2, and the new consolidation of North American subsidiary HUWIZ SOLUTIONS INC. Profit was affected by lower revenue and profitability following the completion of a large ERP project at the AGEST Group and the contraction of commissioned development projects.
How to read this page
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