Fiscal Year Ending February 2026 Full-Year Financial Results Presentation | Eltes Co.,Ltd. (3967) timely disclosure

Worth reading

80Important

Scored from 5 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

431

¥ millions (operating profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationFull fiscal year ended February 202611 items taken from the company’s own explanation

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

Net Sales8,958 million yen+22.4%

Operating profit431 million yen+362.3%

Ordinary income346 million yen+404.0%

Net income-168 million yen

Selling, general and administrative expenses2,754 million yen

Operating profit margin4.8% (up 3.5 percentage points from 1.3% in the previous fiscal year)

Results for the three months of the current quarterThe presentation shows fourth-quarter revenue of ¥2,447 million, EBITDA of ¥460 million and operating profit of ¥337 million for the fiscal year ended February 2026.

Full-year earnings forecast

Fiscal year ending February 2027

Net Sales

8,500 million yen

Operating profit

460 million yen

Operating profit margin

5.4 %

Net income

100 million yen

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。

Fiscal year ended February 2026

Consolidated revenue109.3% (100.0% versus the revised forecast)

Consolidated operating profit113.5% (100.3% versus the revised forecast)

EBITDA123.1% (99.3% versus the revised forecast)

Digital Risk business revenue98.0%

Digital Risk business operating profit94.5%

AI Security business revenue123.5%

AI Security business operating profit192.6%

DX Promotion business revenue114.9%

DX Promotion business operating profit266.2%

What the company explained in this material

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

Results exceeded the earnings forecast. Consolidated results excluding the DX Promotion business also exceeded the plan.

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

Operating profit plan for the fiscal year ending February 2027Operating profit for the fiscal year ended February 2026: ¥431 million → DX Promotion business carve-out: ▲¥26 million → increase in standalone Eltes (core business) operating profit: +¥150 million → increase in group companies' (non-core businesses) operating profit: +¥100 million → increase in development and service delivery personnel: ▲¥120 million → sales promotion and advertising expenses: ▲¥15 million → one-time office relocation costs: ▲¥60 million → operating profit for the fiscal year ending February 2027: ¥460 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Assumes execution of the DX Promotion business carve-out.
Even if the carve-out is completed, operating profit is expected to remain at a similar level.
¥60 million in one-time office relocation costs
Organic growth of 28%, excluding the carve-out and one-time costs

New initiatives

Continue negotiations for the DX Promotion business carve-out, with a sale targeted during the first quarter of the fiscal year ending February 2027.
Launched an image risk detection service that detects brand damage and reputational crisis risks from images posted on social media.
Released a new AI governance service.
Opened a Yokohama location for the AI Security business.
SRIA Lab joined the Group to strengthen DX support capabilities.
Invest in growth areas for IRI and AI Shield and increase development and service delivery personnel.
Formulated the three-year management plan Eltes Lean Transformation.

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

ARR¥25.1 100 million
Year on year against the same period last year+1.2%
Number of IDs covered by the insider threat detection service29.7 10,000 IDs
Year on year against the same period last year▲6.0%
Number of security guards406 people
Number of security company clients382 companies
Monthly SES person-months worked113 Person-months
Number of municipalities served187 Local government
Smart City business MRR100.1 million yen

Segment results

Consolidated

Net Sales¥8,958 million (up ¥1,641 million year on year)

Operating profit¥431 million (up ¥338 million year on year)

Digital Risk business

Net Sales¥2,744 million (up ¥230 million year on year)

Operating profit¥991 million (up ¥71 million year on year)

AI Security business

Net Sales¥2,222 million (up ¥601 million year on year)

Operating profit¥38 million (up ¥79 million year on year)

DX Promotion Business

Net Sales¥2,067 million (up ¥263 million year on year)

Operating profit¥26 million (up ¥16 million year on year)

Smart City Business

Net Sales¥2,052 million (up ¥568 million year on year)

Operating profit¥11 million (up ¥122 million year on year)

Corporate expenses (general and administrative)

637 million yen

Year on year against the same period last year-¥48 million

Medium-term management plan targets

Target fiscal yearFiscal year ending February 2029

Operating profit marginAt least 12% (4.8% actual for the fiscal year ended February 2026)

Operating profit¥900 million (¥431 million actual for the fiscal year ended February 2026)

Equity ratioAt least 40% (26.3% actual for the fiscal year ended February 2026)

Financial targets

Operating profit margin

Target12% or more

Actual results4.8%

Operating profit

Target¥900 million

Actual results¥431 million

Equity ratio

Target40% or more

Actual results26.3%

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

¥60 million in one-time office relocation costs. The earnings forecast may be revised depending on the progress of the carve-out, while other risk amounts were Not disclosed.

Market Size / Share

The Company described itself as having the leading share of the UEBA managed monitoring services market. Market size and share percentage were Not disclosed.

Number of stores and locations

Opened a Yokohama location. The total number of locations at fiscal year-end and the number of openings and closures were Not disclosed.

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Full fiscal year ended February 2026
Net Sales	8,958 million yen (YoY +22.4%)
Operating profit	431 million yen (YoY +362.3%)
Ordinary income	346 million yen (YoY +404.0%)
Net income	-168 million yen
Operating profit margin	4.8% (up 3.5 percentage points from 1.3% in the previous fiscal year)
Selling, general and administrative expenses	2,754 million yen
Results for the three months of the current quarter	The presentation shows fourth-quarter revenue of ¥2,447 million, EBITDA of ¥460 million and operating profit of ¥337 million for the fiscal year ended February 2026.
Full-year earnings forecast	Fiscal year ending February 2027 Net Sales 8,500 million yen / Operating profit 460 million yen / Operating profit margin 5.4 % / Net income 100 million yen
Progress against full-year forecast	Fiscal year ended February 2026 Consolidated revenue 109.3% (100.0% versus the revised forecast) / Consolidated operating profit 113.5% (100.3% versus the revised forecast) / EBITDA 123.1% (99.3% versus the revised forecast) / Digital Risk business revenue 98.0% / Digital Risk business operating profit 94.5% / AI Security business revenue 123.5% / AI Security business operating profit 192.6% / DX Promotion business revenue 114.9% / DX Promotion business operating profit 266.2%
Self-assessment against the plan	Results exceeded the earnings forecast. Consolidated results excluding the DX Promotion business also exceeded the plan.
Segment results	Consolidated Net Sales ¥8,958 million (up ¥1,641 million year on year) / Operating profit ¥431 million (up ¥338 million year on year) / Digital Risk business Net Sales ¥2,744 million (up ¥230 million year on year) / Operating profit ¥991 million (up ¥71 million year on year) / AI Security business Net Sales ¥2,222 million (up ¥601 million year on year) / Operating profit ¥38 million (up ¥79 million year on year) / DX Promotion Business Net Sales ¥2,067 million (up ¥263 million year on year) / Operating profit ¥26 million (up ¥16 million year on year) / Smart City Business Net Sales ¥2,052 million (up ¥568 million year on year) / Operating profit ¥11 million (up ¥122 million year on year) / Corporate expenses (general and administrative) 637 million yen
Breakdown of Factors Affecting the Change	Operating profit plan for the fiscal year ending February 2027 Operating profit for the fiscal year ended February 2026: ¥431 million → DX Promotion business carve-out: ▲¥26 million → increase in standalone Eltes (core business) operating profit: +¥150 million → increase in group companies' (non-core businesses) operating profit: +¥100 million → increase in development and service delivery personnel: ▲¥120 million → sales promotion and advertising expenses: ▲¥15 million → one-time office relocation costs: ▲¥60 million → operating profit for the fiscal year ending February 2027: ¥460 million
Key KPIs	Indicator name ARR / Value ¥25.1 100 million / Year on year against the same period last year +1.2%, Indicator name Number of IDs covered by the insider threat detection service / Value 29.7 10,000 IDs / Year on year against the same period last year ▲6.0%, Indicator name Number of security guards / Value 406 people / Year on year against the same period last year Not disclosed, Indicator name Number of security company clients / Value 382 companies / Year on year against the same period last year Not disclosed, Indicator name Monthly SES person-months worked / Value 113 Person-months / Year on year against the same period last year Not disclosed, Indicator name Number of municipalities served / Value 187 Local government / Year on year against the same period last year Not disclosed, Indicator name Smart City business MRR / Value 100.1 million yen / Year on year against the same period last year Not disclosed
Number of stores and locations	Opened a Yokohama location. The total number of locations at fiscal year-end and the number of openings and closures were Not disclosed.
Assumptions Underlying the Business Outlook	Assumes execution of the DX Promotion business carve-out., Even if the carve-out is completed, operating profit is expected to remain at a similar level., ¥60 million in one-time office relocation costs, Organic growth of 28%, excluding the carve-out and one-time costs
Risk amount incorporated into the outlook	¥60 million in one-time office relocation costs. The earnings forecast may be revised depending on the progress of the carve-out, while other risk amounts were Not disclosed.
Medium-term management plan targets	Target fiscal year Fiscal year ending February 2029 / Operating profit margin At least 12% (4.8% actual for the fiscal year ended February 2026) / Operating profit ¥900 million (¥431 million actual for the fiscal year ended February 2026) / Equity ratio At least 40% (26.3% actual for the fiscal year ended February 2026)
Financial targets	Operating profit margin Target 12% or more / Actual results 4.8% / Operating profit Target ¥900 million / Actual results ¥431 million / Equity ratio Target 40% or more / Actual results 26.3%
Market Size / Share	The Company described itself as having the leading share of the UEBA managed monitoring services market. Market size and share percentage were Not disclosed.
New initiatives	Continue negotiations for the DX Promotion business carve-out, with a sale targeted during the first quarter of the fiscal year ending February 2027., Launched an image risk detection service that detects brand damage and reputational crisis risks from images posted on social media., Released a new AI governance service., Opened a Yokohama location for the AI Security business., SRIA Lab joined the Group to strengthen DX support capabilities., Invest in growth areas for IRI and AI Shield and increase development and service delivery personnel., Formulated the three-year management plan Eltes Lean Transformation.

Items this document does not state (9)

Gross Profit MarginUnit price and quantity metricsNumber of employeesAnnual DividendPayout ratioAcquisition 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 benefited from the security services area of the AI Security business, international large-scale events, large projects in the DX Promotion business, and the performance of Actor Corporation in the Smart City business. Operating profit benefited from stronger management controls, optimization of company-wide expenses, and improved profitability across each business. The net loss resulted from ¥274 million in impairment losses, including a ¥201 million impairment of JAPANDX's software assets due to a revision of its business plan accompanying the carve-out. The forecast for the fiscal year ending February 2027 assumes the carve-out, investment in growth businesses, and one-time costs associated with the office relocation.

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