Komori
Earnings3804System D Inc.Information and Communications, Services and Others

Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending October 2026 (Japanese GAAP)

For the nine months ended, net sales increased 11.5% year on year and operating income increased 1.9%, while net income attributable to owners of the parent declined 9.3%. Recurring revenue accumulated as multiple large-scale projects went live, but impairment losses were also recorded.

Worth reading
46Recurring
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
11.5
% (year-on-year change in revenue)
Wording
Conditional
How definitive the wording is.

Results for this period

Third quarter1 November 2025 to 31 July 2026ConsolidatedJapanese GAAP
Net Sales4,176¥ millionYear on year +11.5%Progress 75.4%
Operating profit706¥ millionYear on year +1.9%Progress 68.7%
Ordinary income712¥ millionYear on year +2.0%Progress 69.4%
Net income attributable to owners of the parent443¥ millionYear on year -9.3%Progress 63.0%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥23.06
Financial position at period-end
Total assets7,619¥ million
of which net assets 5,319 ¥ millionEquity ratio 69.8%vs. prior year-end +1.8pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Segment revenue
Software business4,048,03596.9%+12.4%
Other128,6293.1%-9.4%
Segment profit
Software business1,045,90798.8%+4.1%
Other12,2841.2%-48.9%
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥5,541 million (YoY +10.1%)
Operating profit¥1,028 million (YoY +9.6%)
Ordinary income¥1,026 million (YoY +8.8%)
Net income¥703 million (YoY +12.0%)
Annual Dividend Forecast¥28 → ¥11.00 (¥33 before taking the stock split into account)(17.9% increase (before taking the stock split into account))
Factors Behind Changes in Business Performance

Systems for large-scale projects went live from the start of the new fiscal year across multiple businesses, and recurring revenue accumulated steadily. In the education solutions business, numerous new and upgrade projects were delivered; in the public education solutions business, systems went live in multiple local governments; and in the software engineering business, the number of implementation projects for financial institutions increased.

Disclosure regarding the going concern assumption

Not applicable.

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNew 0 companies (company name: —) / Excluded 0 companies (company name: —)
Material subsequent eventsNot applicable.
Impairment loss¥60,896 thousand
Breakdown of extraordinary income (loss)Extraordinary income None for the current period / Extraordinary loss Impairment Losses ¥60,896 thousand
Depreciation and amortization¥36,785 thousand
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingNone (対象者:Not disclosed)
Issued Shares at Period-End19,494,000 shares
Treasury Shares at Period-End238,917 treasury shares
Results for this period
ItemDetails
Fiscal Period ClassificationThird quarter
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 November 2025 to 31 July 2026
Net Sales¥4,176 million (YoY +11.5%)
Operating profit¥706 million (YoY +1.9%)
Ordinary income¥712 million (YoY +2.0%)
Profit attributable to owners of the parent¥443 million (YoY -9.3%)
Net income per share¥23.06
Equity ratioEnd of the current fiscal period 69.8 / End of previous period 68
Total assets¥7,619 million
Net assets¥5,319 million
Full-year earnings forecastNet Sales ¥5,541 million (YoY +10.1%) / Operating profit ¥1,028 million (YoY +9.6%) / Ordinary income ¥1,026 million (YoY +8.8%) / Net income ¥703 million (YoY +12.0%)
Annual Dividend Forecast¥28 → ¥11.00 (¥33 before taking the stock split into account)(17.9% increase (before taking the stock split into account))
Segment revenueSoftware business ¥4,048,035 thousand (YoY +12.4%) / Other ¥128,629 thousand (YoY -9.4%)
Segment profitSoftware business ¥1,045,907 thousand (YoY +4.1%) / Other ¥12,284 thousand (YoY -48.9%)
Depreciation and amortization¥36,785 thousand
Impairment loss¥60,896 thousand
Breakdown of extraordinary income (loss)Extraordinary income None for the current period / Extraordinary loss Impairment Losses ¥60,896 thousand
Disclosure regarding the going concern assumptionNot applicable.
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNew 0 companies (company name: —) / Excluded 0 companies (company name: —)
Material subsequent eventsNot applicable.
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingNone (対象者:Not disclosed)
Issued Shares at Period-End19,494,000 shares
Treasury Shares at Period-End238,917 treasury shares
Factors Behind Changes in Business PerformanceSystems for large-scale projects went live from the start of the new fiscal year across multiple businesses, and recurring revenue accumulated steadily. In the education solutions business, numerous new and upgrade projects were delivered; in the public education solutions business, systems went live in multiple local governments; and in the software engineering business, the number of implementation projects for financial institutions increased.
Items this document does not state (10)
Operating MarginCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesCash and cash equivalents at end of periodRevision to Earnings ForecastPayout ratioShareholder Return PolicyRegional salesOrders received and order backlog

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.

Recurring revenue accumulated steadily as systems for large-scale projects went live from the start of the new fiscal year across multiple businesses, with both net sales and operating income exceeding the initial plan.

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Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending October 2026 (Japanese GAAP) | System D Inc. (3804) timely disclosure | Komori