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Presentation materials for financial results3680Hotto Link Inc.Information and Communications, Services and Others

Supplementary Materials to the Summary of Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026

In the interim period of the fiscal year ending December 2026, revenue exceeded the prior-year period and operating performance improved, while the Company posted an operating loss and net loss due mainly to valuation losses on Web3-related investments. An interim dividend of ¥3.1 per share was approved, and the annual dividend forecast of ¥6.2 per share was maintained.

Worth reading
82Important
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
-114
¥ million (net income; cumulative second quarter of the fiscal year ending December 2026)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportSecond quarter (interim period) of the fiscal year ending December 202615 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,915 million+10.8%
Operating profit¥-22 million
Ordinary income¥-125 million
Net income¥-114 million
Selling, general and administrative expenses¥711 million expenses
Results for the three months of the current quarterSecond quarter standalone: revenue of ¥918 million, gross profit of ¥336 million, operating loss of ¥67 million, EBITDA adjusted for investment gains and losses of ¥11 million, pretax loss of ¥68 million, and net loss of ¥68 million.
Full-year earnings forecast
Net Sales
¥4,070 million
Gross profit
¥1,610 million
Operating profit
¥104 million
EBITDA adjusted for investment gains and losses
¥223 million
Income before taxes
¥108 million
Profit for the period
¥89 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 Sales47%
Gross profit45%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Generally tracking in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue increase¥187 million
  • Increase in gross profit¥158 million
  • Deterioration in selling, general and administrative expenses and other gains and losses¥-63 million
  • Improvement in operating income¥95 million
  • Improvement in financial income and expenses, etc.¥25 million
  • Profit before tax improvement¥120 million
  • Net income improvement¥114 million
  • Investment valuation and disposal gains and losses¥-176 million impact on pretax profit
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The plan is weighted toward the second half. The SNS Marketing Support business assumes seasonality, with revenue weighted toward the first and fourth quarters. Numerical assumptions were Not disclosed.
New initiatives
  • Released NonagonLink (beta version) in Japan only and began validation toward commercialization
  • Promote business investment in the AI-agent payments field
  • Strengthen collaboration among the SNS Marketing, DaaS, and Web3 businesses
Key KPIsA metric the company considers important as a management benchmark.
  • Number of clients128 companies
  • AI adoption rate in operations70 %
  • Equity ratio69 %
  • Current ratio420 %
  • Debt-to-equity ratio (D/E)44 %
  • Number of financial instrument investments25 Engagements
  • Cumulative investment return (ROI)209 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • SNS Marketing Support business ARPU¥31,918 thousand 2026 target annual ARPU
  • DaaS business ARPU202 US$ thousand 2026 target annual ARPU
Segment results
  • Social media marketing support business
    Net Sales1,242
    Revenue unit¥ million
    Year-on-year change in revenue+16.3%
    Gross profit317
    Profit unit¥ million
    Year-on-year change in profit+4.9%
  • DaaS business
    Net Sales671
    Revenue unit¥ million
    Year-on-year change in revenue+2.1%
    Gross profit411
    Profit unit¥ million
    Year-on-year change in profit+53.7%
  • Web3-Related Business
    Net Sales1.4
    Revenue unit¥ million
    Gross profit1.4
    Profit unit¥ million
Medium-term management plan targets
2026: Strengthen the earnings base of existing businesses, build an AI-based operational platform, and develop new businesses. 2030: Expand the AI × Web3 data business and operate businesses using AI agents. Numerical targets were Not disclosed.
Financial targets
Reported actual figures include an equity ratio of 69% and D/E of 44%. Financial targets were Not disclosed.
Number of stores and locations
3 locations at period-end (1 in Japan, 1 in the United States, and 1 in Singapore). The number of openings and closures during the period was Not disclosed.
Number of employees
141 employees (122 in Japan and 19 overseas). Changes in headcount and the hiring plan during the period were Not disclosed.
Capital expenditures
¥1,650 million business-use assets
Annual Dividend
¥6.2 per share (¥3.1 interim dividend and ¥3.1 forecast year-end dividend)
Payout ratio
The dividend policy targets a DOE of approximately 2%. The dividend payout ratio and total payout ratio were Not disclosed.
Gross profit
Gross profit: ¥729 million; gross margin: 38.1%. The change in the margin from the prior-year period was Not disclosed.
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending December 2026
Net Sales¥1,915 million (YoY +10.8%)
Operating profit¥-22 million
Ordinary income¥-125 million
Net income¥-114 million
Gross profitGross profit: ¥729 million; gross margin: 38.1%. The change in the margin from the prior-year period was Not disclosed.
Selling, general and administrative expenses¥711 million (expenses)
Results for the three months of the current quarterSecond quarter standalone: revenue of ¥918 million, gross profit of ¥336 million, operating loss of ¥67 million, EBITDA adjusted for investment gains and losses of ¥11 million, pretax loss of ¥68 million, and net loss of ¥68 million.
Full-year earnings forecastNet Sales ¥4,070 million / Gross profit ¥1,610 million / Operating profit ¥104 million / EBITDA adjusted for investment gains and losses ¥223 million / Income before taxes ¥108 million / Profit for the period ¥89 million
Progress against full-year forecastNet Sales 47% / Gross profit 45%
Self-assessment against the planGenerally tracking in line with plan
Segment resultsSegment Social media marketing support business / Net Sales 1,242 / Revenue unit ¥ million / Year-on-year change in revenue +16.3% / Gross profit 317 / Profit unit ¥ million / Year-on-year change in profit +4.9%, Segment DaaS business / Net Sales 671 / Revenue unit ¥ million / Year-on-year change in revenue +2.1% / Gross profit 411 / Profit unit ¥ million / Year-on-year change in profit +53.7%, Segment Web3-Related Business / Net Sales 1.4 / Revenue unit ¥ million / Year-on-year change in revenue Not disclosed / Gross profit 1.4 / Profit unit ¥ million / Year-on-year change in profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Revenue increase / Amount ¥187 million, Factors Increase in gross profit / Amount ¥158 million, Factors Deterioration in selling, general and administrative expenses and other gains and losses / Amount ¥-63 million, Factors Improvement in operating income / Amount ¥95 million, Factors Improvement in financial income and expenses, etc. / Amount ¥25 million, Factors Profit before tax improvement / Amount ¥120 million, Factors Net income improvement / Amount ¥114 million, Factors Investment valuation and disposal gains and losses / Amount ¥-176 million (impact on pretax profit)
Key KPIsIndicator name Number of clients / Value 128 companies / Year on year against the same period last year Not disclosed, Indicator name AI adoption rate in operations / Value 70 % / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 69 % / Year on year against the same period last year Not disclosed, Indicator name Current ratio / Value 420 % / Year on year against the same period last year Not disclosed, Indicator name Debt-to-equity ratio (D/E) / Value 44 % / Year on year against the same period last year Not disclosed, Indicator name Number of financial instrument investments / Value 25 Engagements / Year on year against the same period last year Not disclosed, Indicator name Cumulative investment return (ROI) / Value 209 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name SNS Marketing Support business ARPU / Value ¥31,918 thousand (2026 target annual ARPU) / Year on year against the same period last year Not disclosed, Indicator name DaaS business ARPU / Value 202 US$ thousand (2026 target annual ARPU) / Year on year against the same period last year Not disclosed
Number of stores and locations3 locations at period-end (1 in Japan, 1 in the United States, and 1 in Singapore). The number of openings and closures during the period was Not disclosed.
Number of employees141 employees (122 in Japan and 19 overseas). Changes in headcount and the hiring plan during the period were Not disclosed.
Assumptions Underlying the Business OutlookThe plan is weighted toward the second half. The SNS Marketing Support business assumes seasonality, with revenue weighted toward the first and fourth quarters. Numerical assumptions were Not disclosed.
Medium-term management plan targets2026: Strengthen the earnings base of existing businesses, build an AI-based operational platform, and develop new businesses. 2030: Expand the AI × Web3 data business and operate businesses using AI agents. Numerical targets were Not disclosed.
Financial targetsReported actual figures include an equity ratio of 69% and D/E of 44%. Financial targets were Not disclosed.
Annual Dividend¥6.2 per share (¥3.1 interim dividend and ¥3.1 forecast year-end dividend)
Payout ratioThe dividend policy targets a DOE of approximately 2%. The dividend payout ratio and total payout ratio were Not disclosed.
Capital expenditures¥1,650 million (business-use assets)
New initiativesReleased NonagonLink (beta version) in Japan only and began validation toward commercialization, Promote business investment in the AI-agent payments field, Strengthen collaboration among the SNS Marketing, DaaS, and Web3 businesses
Items this document does not state (6)
Operating profit marginRisk amount incorporated into the outlookAcquisition of treasury sharesOrders 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 and gross profit increased as advertising projects expanded in the SNS Marketing Support business and costs were controlled in the DaaS business. Meanwhile, valuation losses on Web3-related investees and funds associated with the deterioration in the crypto-asset market were the primary causes of the operating loss and net loss.

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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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Materials to the Summary of Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 | Hotto Link Inc. (3680) timely disclosure | Komori