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Earnings presentation3697SHIFT Inc.Information and Communications, Services and Others

Financial Results Presentation for the Third Quarter of the Fiscal Year Ending August 2026

Raised the full-year revenue forecast from ¥150.0 billion to ¥160.0 billion. Meanwhile, the forecasts for adjusted ordinary profit and adjusted net profit were revised downward to reflect impairment losses, while the ¥20.0 billion operating profit target was maintained.

Worth reading
64In 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
100
¥100 million (increase in full-year sales forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFY ending August 2026, third quarter13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥438 100 million consolidated, including ニッセイコム
Operating profit¥52 100 million adjusted operating profit, consolidated, including ニッセイコム
Gross Profit Margin32.5 %
Selling, general and administrative expenses
SG&A-to-sales ratio20.7
Results for the three months of the current quarter
Net Sales
¥438 100 million consolidated, including ニッセイコム
Adjusted operating profit
¥52 100 million consolidated, including ニッセイコム
AI revenue
¥79 million
Gross margin
32.5 %
Full-year earnings forecast
Net Sales
¥1,600 million
Adjusted operating profit
¥200 million
Adjusted ordinary profit
¥160 million
Adjusted net profit
¥90 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Adjusted operating profit is expected to meet the plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Personnel expenses
    Change-0.9 percentage points
  • Recruitment costs
    Change-0.6 percentage points
  • Other
    Change-1.0 percentage points
  • Impact of adding ニッセイコム
    Change+1.0 percentage points
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Q4 utilization
    AssumptionsExpected to improve
  • Non-consolidated utilization
    AssumptionsExpected to recover to the previous-year level in July
  • SG&A ratio
    AssumptionsExpected to improve further
New initiatives
  • Significantly increase sales staff from Q4 onward
  • Change to a sales structure divided into top-level approaches, account sales and follow-up sales
  • Improve operational efficiency through in-house use of AI BPaaS
  • Personnel exchanges, joint proposals, joint delivery and AI know-how sharing with ニッセイコム
  • Begin dividend payments from FY2026 and adopt a policy of returning 20% through a total payout ratio
Key KPIsA metric the company considers important as a management benchmark.
  • AI revenue¥79 million
  • AI revenue share18 %
  • AI revenue (vs. Q2)3.1 times
  • Future revenue pipeline¥754 million
    Year on year against the same period last year1.5x
  • AI revenue pipeline¥170 million
  • Active customer companies3,849 companies
  • Total active sales contacts12,133 people
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Monthly project price per project (non-consolidated)¥5,002 thousand
    Year on year against the same period last year+5.1%
  • Monthly project price per project (consolidated, excluding ニッセイコム)¥3,134 thousand
    Year on year against the same period last year+12.4%
  • Number of projects (non-consolidated)1,817 Engagements
    Year on year against the same period last year+19.5%
  • Number of projects (consolidated, excluding ニッセイコム)2,258 Engagements
    Year on year against the same period last year+6.5%
  • Number of customers (non-consolidated)1,226 companies
    Year on year against the same period last year+29.0%
  • Average customer spend (non-consolidated)¥9,121 thousand
    Year on year against the same period last year+8.3%
Segment results
Consulting
NativeAI revenue
¥25 million
WithAI revenue
¥1,765 million
Traditional revenue
¥4,343 million
QonQNativeAI +65%、WithAI +188%、Traditional +16%
Development
NativeAI revenue
¥55 million
WithAI revenue
¥1,397 million
Traditional revenue
¥15,757 million
QonQNativeAI +86%、WithAI +129%、Traditional +26%
Testing
NativeAI revenue
¥71 million
WithAI revenue
¥4,134 million
Traditional revenue
¥11,804 million
QonQNativeAI: launched; WithAI: +228%; Traditional: -22%
BPaaS
NativeAI revenue
¥193 million
WithAI revenue
¥245 million
Traditional revenue
¥909 million
QonQNativeAI: launched; WithAI: +10,768%; Traditional: -4%
Medium-term management plan targets
FY2027 revenue
¥190.0–200.0 billion
FY2027 adjusted operating profit
¥25.5–30.0 billion
Market Size / Share
  • Strategy consultingApproximately ¥700 billion (as of FY2025)
  • Full-service consultingApproximately ¥1.2 trillion (as of FY2025)
  • IT ServicesApproximately ¥16.0 trillion (as of FY2025)
Number of employees
Sales headcount181 people
Change during the periodVirtually unchanged from the beginning of the period
Back-office efficiency improvementsEquivalent to 110 employees
Annual Dividend
Annual dividend per share
¥4.1
Total dividends
¥10.5 million
Payout ratio
10
Acquisition of treasury shares
Include share buybacks in the flexible measures to return 10% of cumulative profit for the three years from FY2026 to FY2028. The specific amount, number of shares and period for the buyback authorization are not disclosed
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFY ending August 2026, third quarter
Net Sales¥438 100 million (consolidated, including ニッセイコム)
Operating profit¥52 100 million (adjusted operating profit, consolidated, including ニッセイコム)
Gross Profit Margin32.5 %
Selling, general and administrative expensesvalue Not disclosed / SG&A-to-sales ratio 20.7
Results for the three months of the current quarterNet Sales ¥438 100 million (consolidated, including ニッセイコム) / Adjusted operating profit ¥52 100 million (consolidated, including ニッセイコム) / AI revenue ¥79 million / Gross margin 32.5 %
Full-year earnings forecastNet Sales ¥1,600 million / Adjusted operating profit ¥200 million / Adjusted ordinary profit ¥160 million / Adjusted net profit ¥90 million
Self-assessment against the planAdjusted operating profit is expected to meet the plan
Segment resultsConsulting NativeAI revenue ¥25 million / WithAI revenue ¥1,765 million / Traditional revenue ¥4,343 million / QonQ NativeAI +65%、WithAI +188%、Traditional +16% / Development NativeAI revenue ¥55 million / WithAI revenue ¥1,397 million / Traditional revenue ¥15,757 million / QonQ NativeAI +86%、WithAI +129%、Traditional +26% / Testing NativeAI revenue ¥71 million / WithAI revenue ¥4,134 million / Traditional revenue ¥11,804 million / QonQ NativeAI: launched; WithAI: +228%; Traditional: -22% / BPaaS NativeAI revenue ¥193 million / WithAI revenue ¥245 million / Traditional revenue ¥909 million / QonQ NativeAI: launched; WithAI: +10,768%; Traditional: -4%
Breakdown of Factors Affecting the ChangeFactors Personnel expenses / Change -0.9 percentage points, Factors Recruitment costs / Change -0.6 percentage points, Factors Other / Change -1.0 percentage points, Factors Impact of adding ニッセイコム / Change +1.0 percentage points
Key KPIsIndicator name AI revenue / Value ¥79 million / Year on year against the same period last year Not disclosed, Indicator name AI revenue share / Value 18 % / Year on year against the same period last year Not disclosed, Indicator name AI revenue (vs. Q2) / Value 3.1 times / Year on year against the same period last year Not disclosed, Indicator name Future revenue pipeline / Value ¥754 million / Year on year against the same period last year 1.5x, Indicator name AI revenue pipeline / Value ¥170 million / Year on year against the same period last year Not disclosed, Indicator name Active customer companies / Value 3,849 companies / Year on year against the same period last year Not disclosed, Indicator name Total active sales contacts / Value 12,133 people / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Monthly project price per project (non-consolidated) / Value ¥5,002 thousand / Year on year against the same period last year +5.1%, Indicator name Monthly project price per project (consolidated, excluding ニッセイコム) / Value ¥3,134 thousand / Year on year against the same period last year +12.4%, Indicator name Number of projects (non-consolidated) / Value 1,817 Engagements / Year on year against the same period last year +19.5%, Number of projects (consolidated, excluding ニッセイコム) 2,258 Engagements, Indicator name Number of customers (non-consolidated) / Value 1,226 companies / Year on year against the same period last year +29.0%, Indicator name Average customer spend (non-consolidated) / Value ¥9,121 thousand / Year on year against the same period last year +8.3%
Number of employeesSales headcount 181 people / Change during the period Virtually unchanged from the beginning of the period / Back-office efficiency improvements Equivalent to 110 employees
Assumptions Underlying the Business OutlookItem Q4 utilization / Assumptions Expected to improve, Item Non-consolidated utilization / Assumptions Expected to recover to the previous-year level in July, Item SG&A ratio / Assumptions Expected to improve further
Medium-term management plan targetsFY2027 revenue ¥190.0–200.0 billion / FY2027 adjusted operating profit ¥25.5–30.0 billion
Annual DividendAnnual dividend per share ¥4.1 / Total dividends ¥10.5 million / Interim and Year-End Breakdown Not disclosed
Payout ratio10
Acquisition of treasury sharesInclude share buybacks in the flexible measures to return 10% of cumulative profit for the three years from FY2026 to FY2028. The specific amount, number of shares and period for the buyback authorization are not disclosed
Market Size / ShareMarket Strategy consulting / Market Size Approximately ¥700 billion (as of FY2025), Market Full-service consulting / Market Size Approximately ¥1.2 trillion (as of FY2025), Market IT Services / Market Size Approximately ¥16.0 trillion (as of FY2025)
New initiativesSignificantly increase sales staff from Q4 onward, Change to a sales structure divided into top-level approaches, account sales and follow-up sales, Improve operational efficiency through in-house use of AI BPaaS, Personnel exchanges, joint proposals, joint delivery and AI know-how sharing with ニッセイコム, Begin dividend payments from FY2026 and adopt a policy of returning 20% through a total payout ratio
Items this document does not state (10)
Ordinary incomeNet incomeOperating profit marginProgress against full-year forecastNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsCapital 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.

The revenue forecast reflects contributions from sales reforms and M&A, while the adjusted operating profit forecast reflects an expected improvement in utilization and a further reduction in the SG&A ratio. The forecasts for adjusted ordinary profit and adjusted net profit incorporate the impact of losses on equity-method investments, including impairment of shares in Rise Consulting Group, Inc.

How to read this page

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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.
Financial Results Presentation for the Third Quarter of the Fiscal Year Ending August 2026 | SHIFT Inc. (3697) timely disclosure | Komori