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Earnings presentation3698CRI Middleware Co.,Ltd.Information and Communications, Services and Others

Supplementary Explanatory Materials for the Nine Months Ended September 2026

For the cumulative third quarter of the fiscal year ending September 2026, revenue increased on growth in the mobility and game businesses, while operating profit declined due to the reversal of the karaoke-related demand surge and upfront investment for overseas expansion. The full-year forecast calls for revenue of ¥3,910 million and operating profit of ¥600 million.

Worth reading
63In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
394
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportQ3 FY202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,724 million+4.3%
Operating profit¥394 million-15.6%
Results for the three months of the current quarter
Net Sales
¥836 million
Operating profit
¥86 million
Full-year earnings forecast
Net Sales
¥3,910 million
Operating profit
¥600 million
Ordinary income
¥616 million
Profit attributable to owners of the parent
¥462 million
Investment in technology development
¥250 million
R&D Investment
¥250 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 Sales69.7
Operating profit65.8
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Game business revenue
Domestic middleware and tools33
Overseas middleware and tools3
Audio production18
Game business profitDown ¥17 million due to upfront investment and other factors
Enterprise business revenue
Mobility248
Embedded systems-153
Cloud Solutions-37
Enterprise business profitDown ¥55 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Planned R&D investment250
R&D investment related to games and TeleXus90
R&D investment related to mobility70
R&D investment related to embedded systems50
R&D investment related to cloud solutions30
New initiatives
  • CRIWARE support for the Godot game engine
  • Adoption of sound products for Audio Weaver through collaboration with DSP Concepts
  • Launch of next-generation LipSync
  • Commencement of development of the next-generation embedded product, D-Amp Driver × GaN
  • Expansion of Glassco into the Indian motorcycle market
  • Review of development plans for next-generation web video products for cloud solutions
Key KPIsA metric the company considers important as a management benchmark.
  • Number of licenses using CRIWARE10,723 Licensing
  • Domestic CRIWARE adoption rate (smartphone games)34 %
  • Domestic CRIWARE adoption rate (console games)30 %
  • Cumulative number of ADXAT licenses1,945 10,000 licenses
  • Cumulative number of Glassco licenses558 10,000 licenses
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Revenue per vehicleTargeting a 1.5-fold increase from the current level
Annual number of vehicles adopting ADXAT and SOLIDASTargeting more than three times the current level
Segment results
Gaming Business
Net Sales
¥1,433 million
Year on year against the same period last yearProfit decrease
Segment profit
¥154 million
Enterprise Business
Net Sales
¥1,290 million
Year on year against the same period last yearProfit decrease
Segment profit
¥240 million
Middleware and tools
Net Sales
¥1,083 million
Year on year against the same period last yearRevenue growth
Audio production
Net Sales
¥350 million
Year on year against the same period last yearRevenue growth
Mobility
Net Sales
¥706 million
Year on year against the same period last yearRevenue growth
Embedded systems
Net Sales
¥396 million
Year on year against the same period last yearDecline in Revenue
Cloud Solutions
Net Sales
¥188 million
Year on year against the same period last yearDecline in Revenue
Medium-term management plan targets
Target fiscal yearFY2030 (fiscal year ending September 2030)
Net Sales¥10,000 million
Operating profit margin¥20 million
Comparison with actual resultsFY2025 revenue of ¥3.4 billion and operating margin of 16%
Market Size / Share
Global game content market
¥31 trillion
Record period2024
Global four-wheel vehicle production
9,043 10,000 units
Record period2023
Motorcycle production in major countries worldwide
5,700 10,000 units
Record period2023
Production volume of the top 5 companies in the Indian motorcycle market
2,031 10,000 units
Record period2023
Target share of the Indian motorcycle market50
Number of employees
Consolidated185
Standalone162
Record date30 June 2026
Annual Dividend
Fiscal year ending September 2026 forecast
Total¥27 per share
Interim¥13 per share
End of period¥14 per share
Payout ratio
30.5
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredQ3 FY2026
Net Sales¥2,724 million (YoY +4.3%)
Operating profit¥394 million (YoY -15.6%)
Results for the three months of the current quarterNet Sales ¥836 million / Operating profit ¥86 million
Full-year earnings forecastNet Sales ¥3,910 million / Operating profit ¥600 million / Ordinary income ¥616 million / Profit attributable to owners of the parent ¥462 million / Investment in technology development ¥250 million / R&D Investment ¥250 million
Progress against full-year forecastNet Sales 69.7 / Operating profit 65.8
Segment resultsGaming Business Net Sales ¥1,433 million / Year on year against the same period last year Profit decrease / Segment profit ¥154 million / Enterprise Business Net Sales ¥1,290 million / Year on year against the same period last year Profit decrease / Segment profit ¥240 million / Middleware and tools Net Sales ¥1,083 million / Year on year against the same period last year Revenue growth / Audio production Net Sales ¥350 million / Year on year against the same period last year Revenue growth / Mobility Net Sales ¥706 million / Year on year against the same period last year Revenue growth / Embedded systems Net Sales ¥396 million / Year on year against the same period last year Decline in Revenue / Cloud Solutions Net Sales ¥188 million / Year on year against the same period last year Decline in Revenue
Breakdown of Factors Affecting the ChangeGame business revenue Domestic middleware and tools 33 / Overseas middleware and tools 3 / Audio production 18 / Game business profit Down ¥17 million due to upfront investment and other factors / Enterprise business revenue Mobility 248 / Embedded systems -153 / Cloud Solutions -37 / Enterprise business profit Down ¥55 million
Key KPIsIndicator name Number of licenses using CRIWARE / Value 10,723 Licensing / Year on year against the same period last year Not disclosed, Indicator name Domestic CRIWARE adoption rate (smartphone games) / Value 34 % / Year on year against the same period last year Not disclosed, Indicator name Domestic CRIWARE adoption rate (console games) / Value 30 % / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of ADXAT licenses / Value 1,945 10,000 licenses / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of Glassco licenses / Value 558 10,000 licenses / Year on year against the same period last year Not disclosed
Unit price and quantity metricsRevenue per vehicle Targeting a 1.5-fold increase from the current level / Annual number of vehicles adopting ADXAT and SOLIDAS Targeting more than three times the current level
Number of employeesConsolidated 185 / Standalone 162 / Record date 30 June 2026
Assumptions Underlying the Business OutlookPlanned R&D investment 250 / R&D investment related to games and TeleXus 90 / R&D investment related to mobility 70 / R&D investment related to embedded systems 50 / R&D investment related to cloud solutions 30
Medium-term management plan targetsTarget fiscal year FY2030 (fiscal year ending September 2030) / Net Sales ¥10,000 million / Operating profit margin ¥20 million / Comparison with actual results FY2025 revenue of ¥3.4 billion and operating margin of 16%
Annual DividendFiscal year ending September 2026 forecast Total ¥27 per share / Interim ¥13 per share / End of period ¥14 per share
Payout ratio30.5
Market Size / ShareGlobal game content market ¥31 trillion / Global four-wheel vehicle production 9,043 10,000 units / Motorcycle production in major countries worldwide 5,700 10,000 units / Production volume of the top 5 companies in the Indian motorcycle market 2,031 10,000 units / Target share of the Indian motorcycle market 50
New initiativesCRIWARE support for the Godot game engine, Adoption of sound products for Audio Weaver through collaboration with DSP Concepts, Launch of next-generation LipSync, Commencement of development of the next-generation embedded product, D-Amp Driver × GaN, Expansion of Glassco into the Indian motorcycle market, Review of development plans for next-generation web video products for cloud solutions
Items this document does not state (13)
Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesSelf-assessment against the planNumber of stores and locationsRisk 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 the expansion of vehicle models adopting Glassco for motorcycles, the acquisition of an exclusive domestic licensing agreement in the game business, and strong audio production. Operating profit declined as the previous year's karaoke-related demand surge in the embedded business subsided, in addition to upfront investment to strengthen overseas expansion, increased sales personnel at subsidiaries, and higher R&D, sales, and head office expenses.

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Supplementary Explanatory Materials for the Nine Months Ended September 2026 | CRI Middleware Co.,Ltd. (3698) timely disclosure | Komori