Consolidated Financial Results Presentation for the First Half of the Fiscal Year Ending March 2027 (1H26) | Internet Initiative Japan Inc. (3774) timely disclosure

Worth reading

65In focus

Scored from 5 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

4280

¥100 million

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationFirst half of the fiscal year ending March 20279 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥2,103 100 million+29.9%

Operating profit¥165.3 100 million+7.4%

Ordinary income¥160.5 100 million+5.9%

Net income¥107.7 100 million+7.4%

Selling, general and administrative expenses¥229.7 100 million

Gross Profit Margin

Rate18.8%

Year-on-year change (points)△2.9 percentage points

Operating profit margin

Rate7.6%

Year-on-year change (points)△1.8 percentage points

Results for the three months of the current quarterQuarterly standalone net sales, costs, profit and segment sales for 1Q26 and 2Q26 are presented. For 2Q26, net sales were ¥112.699 billion, and quarterly operating profit trends are presented in charts.

Full-year earnings forecast

Net Sales

¥4,280 100 million

Costs of sales

¥3,422 100 million

Gross profit

¥858 100 million

Selling, general and administrative expenses, etc.

¥468 100 million

Operating profit

¥390 100 million

Pretax profit

¥375 100 million

Profit for the period

¥255 100 million

Annual Dividend

¥43 /share

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

First-half net sales significantly exceeded the initial outlook, operating profit remained in line with the plan, and selling, general and administrative expenses and other costs remained slightly below the initial assumptions.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Net SalesUp ¥48.39 billion year on year. Growth in IP and outsourcing services, continued growth in consumer and enterprise IoT, upside in revenue from large-scale deployments and other projects, and accumulated revenue from operations and maintenance.

Operating profitUp ¥1.14 billion year on year. Higher profit from increased revenue, higher common infrastructure costs and other expenses, lower mobile gross profit, lower gross margin due to hardware deployment projects, and a decline from the one-time gain from the revision of the retirement benefit plan.

New initiatives

Launch of IIJ Multi-Profile SIM 2.0
Launch of an unlimited-data prepaid SIM for visitors to Japan
Launch of the IIJ SCS Assessment System Assessment Solution
Launch of a demonstration project related to the Ministry of Internal Affairs and Communications' watt-bit coordination initiative
A price revision for network services for multiple enterprises is scheduled for the beginning of the fiscal year ending March 2027.

Key KPIsA metric the company considers important as a management benchmark.

Security services revenue¥220.1 100 million
Year on year against the same period last year+11.8%
Total lines675 10,000 lines
Year on year against the same period last year+760,000 lines
Total contracted bandwidth20,662 Gbps
Number of MVNE customers217 companies
SI construction order intake¥894 100 million
Year on year against the same period last year+¥52.6 billion
SI operations and maintenance order intake¥809 100 million
Year on year against the same period last year+¥26.8 billion

Unit price and quantity metricsThese figures show sales broken down by price and volume.

The number of lines and revenue for enterprise mobile, IIJmio and MVNE, as well as total contracted bandwidth, are presented. An explicit breakdown by unit price is not disclosed.

Segment results

Network Services (excluding mobile)

Sales¥64.11 billion

Year on year against the same period last year+6.6%

Mobile and IoT

Sales¥29.43 billion

Year on year against the same period last year+9.4%

Sales¥115.21 billion

Year on year against the same period last year+57.1%

Sales¥9.56 billion

Year on year against the same period last year+3.5%

Outsourcing

Sales¥36.18 billion

Year on year against the same period last year+10.8%

WAN

Sales¥14.25 billion

Year on year against the same period last year+1.7%

Corporate Mobile

Sales¥9.62 billion

Year on year against the same period last year+9.5%

MVNE

Sales¥6.39 billion

Year on year against the same period last year+9.7%

Consumer Mobile

Sales¥13.42 billion

Year on year against the same period last year+9.2%

Orders received and order backlog

Implementation and configuration

Orders received¥89.4 billion

Order backlog¥60.6 billion

Operations and Maintenance

Orders received¥80.9 billion

Order backlog¥153.3 billion

Number of employees

Consolidated employees totaled 5,823 as of the end of September 2026, up 314 year on year, including 277 new graduates.

Annual Dividend

¥43.00 per share (interim ¥21.50, year-end ¥21.50)

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	First half of the fiscal year ending March 2027
Net Sales	¥2,103 100 million (YoY +29.9%)
Operating profit	¥165.3 100 million (YoY +7.4%)
Ordinary income	¥160.5 100 million (YoY +5.9%)
Net income	¥107.7 100 million (YoY +7.4%)
Gross Profit Margin	Rate 18.8% / Year-on-year change (points) △2.9 percentage points
Operating profit margin	Rate 7.6% / Year-on-year change (points) △1.8 percentage points
Selling, general and administrative expenses	¥229.7 100 million
Results for the three months of the current quarter	Quarterly standalone net sales, costs, profit and segment sales for 1Q26 and 2Q26 are presented. For 2Q26, net sales were ¥112.699 billion, and quarterly operating profit trends are presented in charts.
Full-year earnings forecast	Net Sales ¥4,280 100 million / Costs of sales ¥3,422 100 million / Gross profit ¥858 100 million / Selling, general and administrative expenses, etc. ¥468 100 million / Operating profit ¥390 100 million / Pretax profit ¥375 100 million / Profit for the period ¥255 100 million / Annual Dividend ¥43 /share
Self-assessment against the plan	First-half net sales significantly exceeded the initial outlook, operating profit remained in line with the plan, and selling, general and administrative expenses and other costs remained slightly below the initial assumptions.
Segment results	Network Services (excluding mobile) Sales ¥64.11 billion / Year on year against the same period last year +6.6% / Mobile and IoT Sales ¥29.43 billion / Year on year against the same period last year +9.4% / SI Sales ¥115.21 billion / Year on year against the same period last year +57.1% / IP Sales ¥9.56 billion / Year on year against the same period last year +3.5% / Outsourcing Sales ¥36.18 billion / Year on year against the same period last year +10.8% / WAN Sales ¥14.25 billion / Year on year against the same period last year +1.7% / Corporate Mobile Sales ¥9.62 billion / Year on year against the same period last year +9.5% / MVNE Sales ¥6.39 billion / Year on year against the same period last year +9.7% / Consumer Mobile Sales ¥13.42 billion / Year on year against the same period last year +9.2%
Breakdown of Factors Affecting the Change	Net Sales Up ¥48.39 billion year on year. Growth in IP and outsourcing services, continued growth in consumer and enterprise IoT, upside in revenue from large-scale deployments and other projects, and accumulated revenue from operations and maintenance. / Operating profit Up ¥1.14 billion year on year. Higher profit from increased revenue, higher common infrastructure costs and other expenses, lower mobile gross profit, lower gross margin due to hardware deployment projects, and a decline from the one-time gain from the revision of the retirement benefit plan.
Key KPIs	Indicator name Security services revenue / Value ¥220.1 100 million / Year on year against the same period last year +11.8%, Indicator name Total lines / Value 675 10,000 lines / Year on year against the same period last year +760,000 lines, Indicator name Total contracted bandwidth / Value 20,662 Gbps / Year on year against the same period last year Not disclosed, Indicator name Number of MVNE customers / Value 217 companies / Year on year against the same period last year Not disclosed, Indicator name SI construction order intake / Value ¥894 100 million / Year on year against the same period last year +¥52.6 billion, Indicator name SI operations and maintenance order intake / Value ¥809 100 million / Year on year against the same period last year +¥26.8 billion
Unit price and quantity metrics	The number of lines and revenue for enterprise mobile, IIJmio and MVNE, as well as total contracted bandwidth, are presented. An explicit breakdown by unit price is not disclosed.
Number of employees	Consolidated employees totaled 5,823 as of the end of September 2026, up 314 year on year, including 277 new graduates.
Annual Dividend	¥43.00 per share (interim ¥21.50, year-end ¥21.50)
Orders received and order backlog	Implementation and configuration Orders received ¥89.4 billion / Order backlog ¥60.6 billion / Operations and Maintenance Orders received ¥80.9 billion / Order backlog ¥153.3 billion
New initiatives	Launch of IIJ Multi-Profile SIM 2.0, Launch of an unlimited-data prepaid SIM for visitors to Japan, Launch of the IIJ SCS Assessment System Assessment Solution, Launch of a demonstration project related to the Ministry of Internal Affairs and Communications' watt-bit coordination initiative, A price revision for network services for multiple enterprises is scheduled for the beginning of the fiscal year ending March 2027.

Items this document does not state (11)

Progress against full-year forecastNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesCapital expendituresMarket 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.

Domestic demand for IT infrastructure and security remained firm, while several large GPU-related projects contributed to a substantial increase in SI revenue. Gross margin declined because of the sales mix between network services and SI, as well as large hardware-centered SI projects, but higher revenue led to higher profit, and selling, general and administrative expenses and other costs were slightly below expectations, also contributing to the result.

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.