Komori
Financial results presentation3692FFRI Security,Inc.Information and Communications, Services and Others

Supplementary Explanatory Materials for the Financial Results for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue and profit increased significantly, exceeding the company's forecasts, driven by an increase in security product contracts and growing demand for cyber defense projects. For the fiscal year ending March 2027, the company expects revenue and profit to increase, although profit growth is planned to be slower than revenue growth due to increased engineering headcount and stepped-up hiring.

Worth reading
61In focus
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
1309
Millions of yen (year-on-year change in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,348 million+43.1%
Operating profit¥1,364 million+67.0%
Ordinary income¥1,458 million+65.7%
Net income¥1,099 million+60.1%
Gross Profit Margin60.7 %
Operating profit margin31.4 %
Selling, general and administrative expenses¥1,276 million
Results for the three months of the current quarter
Net Sales
4Q of the fiscal year ended March 20261,560
4Q of the fiscal year ended March 20251,177
NotesPresented as quarterly revenue trends
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥5,135 million
Operating profit
¥1,452 million
Ordinary income
¥1,509 million
Net income
¥1,133 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Results exceeded the forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Labor Costs
    Fiscal year ending March 20261,278
    Fiscal year ending March 20251,113
    Year-on-year difference+14.9%
  • Expenses (cost of sales)
    Fiscal year ending March 2026693
    Fiscal year ending March 2025270
    Year-on-year difference+155.8%
  • Personnel expenses (SG&A)
    Fiscal year ending March 2026586
    Fiscal year ending March 2025490
    Year-on-year difference+19.6%
  • Research and development costs
    Fiscal year ending March 202699
    Fiscal year ending March 2025165
    Year-on-year difference-40.1%
  • Recruitment costs
    Fiscal year ending March 202668
    Fiscal year ending March 202550
    Year-on-year difference+34.2%
New initiatives
  • Established 株式会社FFRIセキュリティワークス in January 2026 as a subsidiary specializing in security education, penetration testing and vulnerability assessments
  • Participation in research and development for the K Program
  • Acquisition of new sales partners and enhancement of functions for the FFRI yarai series
  • Stepped-up hiring of security engineers and improvements to compensation and benefits
Key KPIsA metric the company considers important as a management benchmark.
  • Number of licenses for the FFRI yarai series619,056 Lic
    Year on year against the same period last year+32160 Lic
  • Consolidated number of employees236 people
    Year on year against the same period last year+27 people
  • Number of mid-career engineer hires11 people
    Year on year against the same period last year8 people in the fiscal year ended March 2025
  • Number of new graduate engineer hires18 people
    Year on year against the same period last year21 people in the fiscal year ended March 2025
  • Employee turnover rate (FFRI average)6.5 %
    Year on year against the same period last yearIncreased from 5.7% in the fiscal year ended March 2025
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of licenses for the FFRI yarai series
    March 2024512,389
    March 2025586,896
    March 2026619,056
  • FFRI yarai unit price
    March 20241,501
    March 20251,484
    March 20261,371
  • H&B unit price
    March 20241,750
    March 20251,467
    March 20261,289
Segment results
  • Security Products
    Net Sales
    Fiscal year ending March 2026 1,756 / Fiscal year ending March 2025 1,213
    Year-on-year change in revenueIncreased
    Gross profit
    Fiscal year ending March 2026 1,530 / Fiscal year ending March 2025 1,530
  • National Security Service
    Net Sales
    Fiscal year ending March 2026 1,576 / Fiscal year ending March 2025 944
    Year-on-year change in revenueIncreased
    Gross profit
    Fiscal year ending March 2026 622 / Fiscal year ending March 2025 640
    Year-on-year change in gross profitDecreased
  • Other Security Services
    Net Sales
    Fiscal year ending March 2026 654 / Fiscal year ending March 2025 429
    Year-on-year change in revenueIncreased
    Gross profit
    Fiscal year ending March 2026 403 / Fiscal year ending March 2025 302
    Year-on-year change in gross profitIncreased
  • Software Development and Testing business
    Net Sales
    Fiscal year ending March 2026 361 / Fiscal year ending March 2025 451
    Year-on-year change in revenueDecreased
Medium-term management plan targets
Period CoveredFiscal years ending March 2027 to March 2029
Net Sales
Fiscal year ending March 2027¥5,135 million
Fiscal year ending March 2028¥6,069 million
Fiscal year ending March 2029¥7,029 million
Operating profit
Fiscal year ending March 2027¥1,452 million
Fiscal year ending March 2028¥1,730 million
Fiscal year ending March 2029¥1,951 million
Market Size / Share
Domestic cybersecurity talent shortageApproximately 110,000 people (as of 2023)
Number of employees
Fiscal year ending March 2026236 people
Change during the period21 security engineers who joined in spring 2025 and 11 mid-career hires
Annual Dividend
Fiscal year ending March 2026¥18 per share
Forecast for the fiscal year ending March 2027¥18 per share
Payout ratio
Fiscal year ending March 202612.9 %
Forecast for the fiscal year ending March 202712.6 %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥4,348 million (YoY +43.1%)
Operating profit¥1,364 million (YoY +67.0%)
Ordinary income¥1,458 million (YoY +65.7%)
Net income¥1,099 million (YoY +60.1%)
Gross Profit Margin60.7 %
Operating profit margin31.4 %
Selling, general and administrative expenses¥1,276 million
Results for the three months of the current quarterNet Sales 4Q of the fiscal year ended March 2026 1,560 / 4Q of the fiscal year ended March 2025 1,177 / Notes Presented as quarterly revenue trends
Full-year earnings forecastFiscal year ending March 2027 Net Sales ¥5,135 million / Operating profit ¥1,452 million / Ordinary income ¥1,509 million / Net income ¥1,133 million
Self-assessment against the planResults exceeded the forecast
Segment resultsSegment Security Products / Net Sales Fiscal year ending March 2026 1,756 / Fiscal year ending March 2025 1,213 / Year-on-year change in revenue Increased / Gross profit Fiscal year ending March 2026 1,530 / Fiscal year ending March 2025 1,530 / Year-on-year change in gross profit Not disclosed, Segment National Security Service / Net Sales Fiscal year ending March 2026 1,576 / Fiscal year ending March 2025 944 / Year-on-year change in revenue Increased / Gross profit Fiscal year ending March 2026 622 / Fiscal year ending March 2025 640 / Year-on-year change in gross profit Decreased, Segment Other Security Services / Net Sales Fiscal year ending March 2026 654 / Fiscal year ending March 2025 429 / Year-on-year change in revenue Increased / Gross profit Fiscal year ending March 2026 403 / Fiscal year ending March 2025 302 / Year-on-year change in gross profit Increased, Segment Software Development and Testing business / Net Sales Fiscal year ending March 2026 361 / Fiscal year ending March 2025 451 / Year-on-year change in revenue Decreased / Gross profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Labor Costs / Fiscal year ending March 2026 ¥1,278 million / Fiscal year ending March 2025 ¥1,113 million / Year-on-year difference +14.9%, Factors Expenses (cost of sales) / Fiscal year ending March 2026 ¥693 million / Fiscal year ending March 2025 ¥270 million / Year-on-year difference +155.8%, Factors Personnel expenses (SG&A) / Fiscal year ending March 2026 ¥586 million / Fiscal year ending March 2025 ¥490 million / Year-on-year difference +19.6%, Factors Research and development costs / Fiscal year ending March 2026 ¥99 million / Fiscal year ending March 2025 ¥165 million / Year-on-year difference -40.1%, Factors Recruitment costs / Fiscal year ending March 2026 ¥68 million / Fiscal year ending March 2025 ¥50 million / Year-on-year difference +34.2%
Key KPIsIndicator name Number of licenses for the FFRI yarai series / Value 619,056 Lic / Year on year against the same period last year +32160 Lic, Indicator name Consolidated number of employees / Value 236 people / Year on year against the same period last year +27 people, Indicator name Number of mid-career engineer hires / Value 11 people / Year on year against the same period last year 8 people in the fiscal year ended March 2025, Indicator name Number of new graduate engineer hires / Value 18 people / Year on year against the same period last year 21 people in the fiscal year ended March 2025, Indicator name Employee turnover rate (FFRI average) / Value 6.5 % / Year on year against the same period last year Increased from 5.7% in the fiscal year ended March 2025
Unit price and quantity metricsIndicator name Number of licenses for the FFRI yarai series / March 2024 512,389 Lic / March 2025 586,896 Lic / March 2026 619,056 Lic, Indicator name FFRI yarai unit price / March 2024 ¥1,501 / March 2025 ¥1,484 / March 2026 ¥1,371, Indicator name H&B unit price / March 2024 ¥1,750 / March 2025 ¥1,467 / March 2026 ¥1,289
Number of employeesFiscal year ending March 2026 236 people / Change during the period 21 security engineers who joined in spring 2025 and 11 mid-career hires
Medium-term management plan targetsPeriod Covered Fiscal years ending March 2027 to March 2029 / Net Sales Fiscal year ending March 2027 ¥5,135 million / Fiscal year ending March 2028 ¥6,069 million / Fiscal year ending March 2029 ¥7,029 million / Operating profit Fiscal year ending March 2027 ¥1,452 million / Fiscal year ending March 2028 ¥1,730 million / Fiscal year ending March 2029 ¥1,951 million
Annual DividendFiscal year ending March 2026 ¥18 per share / Forecast for the fiscal year ending March 2027 ¥18 per share / Interim and Year-End Breakdown Not disclosed
Payout ratioFiscal year ending March 2026 12.9 % / Forecast for the fiscal year ending March 2027 12.6 %
Market Size / ShareDomestic cybersecurity talent shortage Approximately 110,000 people (as of 2023)
New initiativesEstablished 株式会社FFRIセキュリティワークス in January 2026 as a subsidiary specializing in security education, penetration testing and vulnerability assessments, Participation in research and development for the K Program, Acquisition of new sales partners and enhancement of functions for the FFRI yarai series, Stepped-up hiring of security engineers and improvements to compensation and benefits
Items this document does not state (9)
Progress against full-year forecastNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition 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.

Revenue increased due to growth in contracts for FFRI yarai and FFRI yarai analyzer, higher demand related to cyber defense, and an increase in long-term projects. Although personnel expenses, recruitment costs and outsourcing expenses increased, the company had estimated these costs conservatively in its plan, enabling results to exceed its forecasts.

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Supplementary Explanatory Materials for the Financial Results for the Fiscal Year Ending March 2026 | FFRI Security,Inc. (3692) timely disclosure | Komori