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Presentation materials for financial results3974SCAT Inc.Information and Communications, Services and Others

Supplementary Financial Results Materials for the Third Quarter of the Fiscal Year Ending October 2026

Third-quarter net sales and profit fell below the year-earlier period, and the company revised its full-year forecasts downward. The reductions were ¥93 million for operating profit, ¥83 million for ordinary profit, and ¥65 million for net income attributable to owners of the parent, while the annual dividend forecast was raised to ¥14.50.

Worth reading
57In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
93
¥ million (reduction in full-year operating profit forecast)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportThird quarter of the fiscal year ending October 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,926 million-1.2%
Operating profit¥127 million-13.4%
Ordinary income¥135 million-9.3%
Net income¥84 million-9.8%
Gross Profit Margin38.9%
Operating profit margin6.6%
Selling, general and administrative expenses¥622 million
Full-year earnings forecast
Net Sales
¥2,546 million
Operating profit
¥107 million
Ordinary income
¥117 million
Profit attributable to owners of the parent
¥60 million
Earnings per share
¥19.25
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress in line with the initial plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Slowdown in system salesApproximately ¥100 million decrease in net sales
  • Higher purchase prices for servers, memory and other items
  • M&A acquisition-related expenses¥29 million
  • Stock acquisition rights issuance costs¥6 million
New initiatives
  • Issuance of Series 1 share warrants through a third-party allotment and fundraising of approximately ¥511 million
  • Execution of an agreement to acquire all shares of IDA System Ltd. through an M&A transaction
  • Launch of an integrated service linking a POS, CRM and AI system for beauty salons with back-office operations
  • Launch of a management support program for beauty salons
  • Launch of AI- and DX-related services and recruitment of specialist personnel
  • Implementation of a shareholder benefit program commemorating the 10th anniversary of the company's TSE listing
Key KPIsA metric the company considers important as a management benchmark.
  • Equity ratio70.8 %
  • ROE4.1 %
  • PBR (based on the share price at the end of the third quarter)1.01 times
  • Earnings per share¥26.98
  • Three-month average share price¥571
  • Share price at month-end¥667
Segment results
Beauty ICT Business
Net Sales
¥1,085 million-4.9%
Segment profit
¥24 million-70.4%
Business Services Business
Net Sales
¥256 million+2.6%
Segment profit
¥40 million+28.8%
Long-term care services business
Net Sales
¥573 million+4.6%
Segment profit
¥53 million+122.7%
Medium-term management plan targets
  • TargetConsolidated net sales of ¥2.6 billion
    Target fiscal yearFiscal year ending October 2026
  • TargetConsolidated ordinary profit of ¥200 million
    Target fiscal yearFiscal year ending October 2026
  • TargetOrdinary profit margin of more than 7%
    Target fiscal yearFiscal year ending October 2026
  • TargetROE of 7.0%, PBR of 0.7x
    Target fiscal yearFiscal year ending October 2026
  • TargetNet sales of ¥3.0 billion, ordinary profit of ¥300 million, ROE of 10%
    Target fiscal yearFiscal year ending October 2026 (initial plan)
    Comparison with actual resultsBelow the initial numerical targets
Financial targets
Target
  • ROE7.0%
  • PBR of 0.7x
  • Equity ratio and D/E ratio: Not disclosed
Actual results
  • ROE4.1%
  • PBR of 1.01x
  • Equity ratio of 70.8%
Number of stores and locations
Number at period-end3 fee-based nursing homes for seniors, approximately 160 capacity
Number of employees
Number of Employees190 consolidated employees (at the end of October 2025)
Changes during the period and hiring planInvesting in securing and recruiting personnel to drive growth and improve services
Annual Dividend
Annual dividend per share¥14.5
Interim¥7
End of period¥7.5
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredThird quarter of the fiscal year ending October 2026
Net Sales¥1,926 million (YoY -1.2%)
Operating profit¥127 million (YoY -13.4%)
Ordinary income¥135 million (YoY -9.3%)
Net income¥84 million (YoY -9.8%)
Gross Profit Margin38.9%
Operating profit margin6.6%
Selling, general and administrative expenses¥622 million
Full-year earnings forecastNet Sales ¥2,546 million / Operating profit ¥107 million / Ordinary income ¥117 million / Profit attributable to owners of the parent ¥60 million / Earnings per share ¥19.25
Self-assessment against the planProgress in line with the initial plan
Segment resultsBeauty ICT Business Net Sales ¥1,085 million (YoY -4.9%) / Segment profit ¥24 million (YoY -70.4%) / Business Services Business Net Sales ¥256 million (YoY +2.6%) / Segment profit ¥40 million (YoY +28.8%) / Long-term care services business Net Sales ¥573 million (YoY +4.6%) / Segment profit ¥53 million (YoY +122.7%)
Breakdown of Factors Affecting the ChangeFactors Slowdown in system sales / Amount Approximately ¥100 million decrease in net sales, Factors Higher purchase prices for servers, memory and other items / Amount Not disclosed, Factors M&A acquisition-related expenses / Amount ¥29 million, Factors Stock acquisition rights issuance costs / Amount ¥6 million
Key KPIsIndicator name Equity ratio / Value 70.8 % / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 4.1 % / Year on year against the same period last year Not disclosed, Indicator name PBR (based on the share price at the end of the third quarter) / Value 1.01 times / Year on year against the same period last year Not disclosed, Indicator name Earnings per share / Value ¥26.98 / Year on year against the same period last year Not disclosed, Indicator name Three-month average share price / Value ¥571 / Year on year against the same period last year Not disclosed, Indicator name Share price at month-end / Value ¥667 / Year on year against the same period last year Not disclosed
Number of stores and locationsNumber at period-end 3 fee-based nursing homes for seniors, approximately 160 capacity / Number of store openings and closures during the period Not disclosed
Number of employeesNumber of Employees 190 consolidated employees (at the end of October 2025) / Changes during the period and hiring plan Investing in securing and recruiting personnel to drive growth and improve services
Medium-term management plan targetsTarget Consolidated net sales of ¥2.6 billion / Target fiscal year Fiscal year ending October 2026, Target Consolidated ordinary profit of ¥200 million / Target fiscal year Fiscal year ending October 2026, Target Ordinary profit margin of more than 7% / Target fiscal year Fiscal year ending October 2026, Target ROE of 7.0%, PBR of 0.7x / Target fiscal year Fiscal year ending October 2026, Target Net sales of ¥3.0 billion, ordinary profit of ¥300 million, ROE of 10% / Target fiscal year Fiscal year ending October 2026 (initial plan) / Comparison with actual results Below the initial numerical targets
Financial targetsTarget ROE7.0%, PBR of 0.7x, Equity ratio and D/E ratio: Not disclosed / Actual results ROE4.1%, PBR of 1.01x, Equity ratio of 70.8%
Annual DividendAnnual dividend per share ¥14.5 / Interim ¥7 / End of period ¥7.5
New initiativesIssuance of Series 1 share warrants through a third-party allotment and fundraising of approximately ¥511 million, Execution of an agreement to acquire all shares of IDA System Ltd. through an M&A transaction, Launch of an integrated service linking a POS, CRM and AI system for beauty salons with back-office operations, Launch of a management support program for beauty salons, Launch of AI- and DX-related services and recruitment of specialist personnel, Implementation of a shareholder benefit program commemorating the 10th anniversary of the company's TSE listing
Items this document does not state (11)
Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket 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.

The company cited a slowdown in system sales in the second half, a decline in replacement demand among users who adopted the systems during the COVID-19 pandemic, higher purchase prices for hardware such as servers and memory, approximately ¥29 million in M&A acquisition-related expenses, and approximately ¥6 million in share warrant issuance expenses. The impact on results from unauthorized third-party use of the cloud service is still under review.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Financial Results Materials for the Third Quarter of the Fiscal Year Ending October 2026 | SCAT Inc. (3974) timely disclosure | Komori