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Financial Results Presentation3836AVANT GROUP CORPORATIONInformation and Communications, Services and Others

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

For the nine months ended March 2026, revenue, operating profit and net income exceeded the year-earlier period, and the operating margin also improved. However, revenue reached 68.5% of the full-year forecast, and the company explained that progress was behind the target compared with levels over the past 4 years.

Worth reading
71In 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
12.3
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationThird quarter of the fiscal year ending June 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales22,828 Millions of yen+9.0%
Operating profit4,072 Millions of yen+12.3%
Net income2,542 Millions of yen+12.0%
Gross Profit Margin45.1%
Operating profit margin17.8%
Selling, general and administrative expenses6,213 Millions of yen
Results for the three months of the current quarter
Net Sales
7,625 Millions of yen+10.1%
Operating profit
1,326 Millions of yen+22.0%
Net income
797 Millions of yen+16.3%
Gross profit
3,445 Millions of yen
Operating profit margin17.4%
Full-year earnings forecast
Net Sales
33,300 Millions of yen
Operating profit
5,100 Millions of yen
Net income for the current fiscal year
3,500 Millions of yen
Year-end dividend
¥32 per share
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 Sales68.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Behind target
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profitPersonnel and recruitment costs increased, outsourced costs declined slightly overall, IT costs increased, and other costs, including office expenses and investment-related costs for future growth, increased. Amounts by factor: not disclosed
New initiatives
  • Change the business segments to one segment for each of the 3 principal operating companies, plus an Other segment
  • Increase the shareholder return allocation for dividends and share repurchases
  • Maintain and expand the growth investment allocation, with borrowings as needed
  • Pursue M&A transactions expected to generate ¥2.5 billion in software gross profit
  • Make 2–3 investments annually in startup companies
  • Recruit talent and invest in research and development and marketing to strengthen sales and development capabilities
Key KPIsA metric the company considers important as a management benchmark.
  • Operating income per employee2.3 Millions of yen
    Year on year against the same period last year+1.0%
  • Software gross profit729 Millions of yen
    Year on year against the same period last year+2.1%
  • ROE25.6 %
    Year-on-year change (points)2.7
  • Stock revenue3,144 Millions of yen
  • Stock revenue ratio41.2 %
Segment results
Consolidated financial reporting business
Net Sales
7,141 Millions of yen+16.3%
Operating profit
2,305 Millions of yen+38.6%
Operating profit margin
32.3%
Year-on-year change (points)5.2
DX Promotion Business
Net Sales
8,457 Millions of yen+9.4%
Operating profit
1,580 Millions of yen+20.4%
Operating profit margin
18.7%
Year-on-year change (points)1.7
Management-solutions business
Net Sales
7,139 Millions of yen+1.8%
Operating profit
947 Millions of yen-28.1%
Operating profit margin
13.3%
Year-on-year change (points)-5.5
Other
Net Sales
365 Millions of yen+15.8%
Operating profit
57 Millions of yen-17.1%
Operating profit margin
15.8%
Year-on-year change (points)-6.3
Medium-term management plan targets
ROEAverage of 20% or more
PER30x
Dividend-on-equity ratio8%
Software gross profit¥5.5 billion
Target fiscal yearWithin the medium-term management plan period
Financial targets
ROE
TargetAverage of 20% or more
Actual results25.6 %
PBR
Target6 times
Actual results3.61 times
PER
Target30 times
Actual results14.1 times
Equity ratio
Actual results67.9 %
Market Size / Share
Consolidated Accounting Software Market Share42.8 %
Target fiscal yearFY2024
Orders received and order backlog
Consolidated financial reporting business
Orders received7,724 Millions of yen
Order backlog5,573 Millions of yen
DX Promotion Business
Orders received8,534 Millions of yen
Order backlog2,089 Millions of yen
Management-solutions business
Orders received6,776 Millions of yen
Order backlog2,808 Millions of yen
Other
Orders received315 Millions of yen
Order backlog149 Millions of yen
Number of employees
The specific number of employees was not disclosed. The company stated that headcount is trending upward.
Capital expenditures
¥243 millions purchases of property, plant and equipment
Annual Dividend
¥32 per share
End of period32
Payout ratio
Not disclosed. DOE is forecast at 7.1% for FY2026 and was 6.3% in FY2025.
Acquisition of treasury shares
3,001,836,369 Shares
Number of Shares1,967,000
Amount unit¥
Period28 November 2025 to 31 March 2026
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredThird quarter of the fiscal year ending June 2026
Net Sales22,828 Millions of yen (YoY +9.0%)
Operating profit4,072 Millions of yen (YoY +12.3%)
Net income2,542 Millions of yen (YoY +12.0%)
Gross Profit Margin45.1%
Operating profit margin17.8%
Selling, general and administrative expenses6,213 Millions of yen
Results for the three months of the current quarterNet Sales 7,625 Millions of yen (YoY +10.1%) / Operating profit 1,326 Millions of yen (YoY +22.0%) / Net income 797 Millions of yen (YoY +16.3%) / Gross profit 3,445 Millions of yen / Operating profit margin 17.4%
Full-year earnings forecastNet Sales 33,300 Millions of yen / Operating profit 5,100 Millions of yen / Net income for the current fiscal year 3,500 Millions of yen / Year-end dividend ¥32 per share
Progress against full-year forecastNet Sales 68.5%
Self-assessment against the planBehind target
Segment resultsConsolidated financial reporting business Net Sales 7,141 Millions of yen (YoY +16.3%) / Operating profit 2,305 Millions of yen (YoY +38.6%) / Operating profit margin 32.3% / DX Promotion Business Net Sales 8,457 Millions of yen (YoY +9.4%) / Operating profit 1,580 Millions of yen (YoY +20.4%) / Operating profit margin 18.7% / Management-solutions business Net Sales 7,139 Millions of yen (YoY +1.8%) / Operating profit 947 Millions of yen (YoY -28.1%) / Operating profit margin 13.3% / Other Net Sales 365 Millions of yen (YoY +15.8%) / Operating profit 57 Millions of yen (YoY -17.1%) / Operating profit margin 15.8%
Breakdown of Factors Affecting the ChangeChange in operating profit Personnel and recruitment costs increased, outsourced costs declined slightly overall, IT costs increased, and other costs, including office expenses and investment-related costs for future growth, increased. Amounts by factor: not disclosed
Key KPIsOperating income per employee 2.3 Millions of yen, Software gross profit 729 Millions of yen, ROE 25.6 %, Stock revenue 3,144 Millions of yen, Stock revenue ratio 41.2 %
Number of employeesThe specific number of employees was not disclosed. The company stated that headcount is trending upward.
Medium-term management plan targetsROE Average of 20% or more / PER 30x / Dividend-on-equity ratio 8% / Software gross profit ¥5.5 billion / Target fiscal year Within the medium-term management plan period
Financial targetsROE Target Average of 20% or more / Actual results 25.6 % / PBR Target 6 times / Actual results 3.61 times / PER Target 30 times / Actual results 14.1 times / Equity ratio Actual results 67.9 % / Target Not disclosed
Annual Dividend¥32 per share
Payout ratioNot disclosed. DOE is forecast at 7.1% for FY2026 and was 6.3% in FY2025.
Acquisition of treasury sharesNumber of Shares 1,967,000 Shares / Amount 3,001,836,369 Shares / Amount unit ¥ / Period 28 November 2025 to 31 March 2026
Capital expenditures¥243 millions (purchases of property, plant and equipment)
Orders received and order backlogConsolidated financial reporting business Orders received 7,724 Millions of yen / Order backlog 5,573 Millions of yen / DX Promotion Business Orders received 8,534 Millions of yen / Order backlog 2,089 Millions of yen / Management-solutions business Orders received 6,776 Millions of yen / Order backlog 2,808 Millions of yen / Other Orders received 315 Millions of yen / Order backlog 149 Millions of yen
Market Size / ShareConsolidated Accounting Software Market Share 42.8 % / Target fiscal year FY2024
New initiativesChange the business segments to one segment for each of the 3 principal operating companies, plus an Other segment, Increase the shareholder return allocation for dividends and share repurchases, Maintain and expand the growth investment allocation, with borrowings as needed, Pursue M&A transactions expected to generate ¥2.5 billion in software gross profit, Make 2–3 investments annually in startup companies, Recruit talent and invest in research and development and marketing to strengthen sales and development capabilities
Items this document does not state (6)
Ordinary incomeUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookKey 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 growth was achieved primarily in the Consolidated Financial Reporting Disclosure Business and the DX Promotion Business. Although personnel and recruitment costs, IT costs, office expenses and investment-related costs for future growth increased as the business expanded, higher margins resulting from growth in the software business and a decline in outsourced processing costs contributed to operating profit.

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Financial Results Presentation for the Third Quarter of the Fiscal Year Ending June 2026 | AVANT GROUP CORPORATION (3836) timely disclosure | Komori