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Presentation materials for financial results3997TRADE WORKS Co.,LtdInformation and Communications, Services and Others

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026

In the first half of FY2026 December, revenue increased, while operating income, ordinary income and net income all turned from losses into profits. On a standalone second-quarter basis, however, revenue from certain projects was pushed into the third quarter and beyond because acceptance was deferred, resulting in a lower margin and operating income than in the same period of the previous year.

Worth reading
63In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
574
¥ million (year-on-year increase in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,623 million+28.0%
Operating profit¥59 million
Ordinary income¥57 million
Net income¥17 million
Gross Profit Margin23.2%
Operating profit margin2.3%
Selling, general and administrative expenses¥549 million
Results for the three months of the current quarter
Net Sales
¥1,378 million+19.2%
Gross profit
¥306 million+6.3%
Operating profit
¥23 million-51.1%
Ordinary income
¥21 million-62.5%
Net income
¥-1 million-103.6%
Gross Profit Margin22.2%
Operating profit margin1.7%
Full-year earnings forecast
Net Sales
¥5,700 million
Operating profit
¥480 million
Ordinary income
¥480 million
Net income
¥300 million
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 Sales46.0%
Operating profit12.4%
Ordinary income12.0%
Net income5.8%
Projected cumulative revenue through 3Q76.7%〜78.4%
Projected cumulative operating income through 3Q37.7%〜54.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue has generally tracked the plan. Cumulative revenue progress through the third quarter is proceeding smoothly. The full-year forecasts remain unchanged.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Projects shifted between periods¥204 million in revenue and ¥96 million in gross profit shifted to the third quarter and beyond
Direct project costs+¥329 million (cumulative through 2Q)
Common costs+¥18 million (cumulative through 2Q)
Provision for order-related losses+¥42 million (year on year, cumulative through 2Q)
Loss on sale of investment securities¥54.6 million
Gain on donation of fixed assets¥38.9 million
Net extraordinary gain (loss)-¥15.7 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Projected 3Q revenue¥1,748–1,847 million
Projected 3Q operating income¥181–260 million
Projected cumulative revenue through 3Q¥4,371–4,470 million
Full-year revenue plan¥5,700 million
New initiatives
  • Release of the outline of the new medium-term management plan for 2027–2029
  • Planned overseas rollout of a securities white-label service for SBI Thai Online Securities
  • Joint development of the next-generation AI information platform with MINKABU
  • Launch of a proof of concept for LastEvidence with SBI Securities
  • Integration with DiscoverFeed's decentralized data platform
  • Launch of an AI-powered penetration testing service
  • Adoption of SpotPath by 立花証券
  • Addition of a U.S. stock accumulation feature to DMM.com Securities' "つみたてかぶ"
  • Establishment of the On-Chain Strategy Office and launch of the AI × On-Chain Financial Strategy Council
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥298 million cumulative 2Q
  • EBITDA margin10.5% (cumulative through 2Q)
  • Recurring Revenue¥565 million standalone 2Q
  • Recurring revenue mix41.0% (standalone 2Q)
  • Equity ratio62.5%
Medium-term management plan targets
Next Medium-Term Management Plan2027–2029
Extension based on the current medium-term plan¥7.5 billion
Capital expenditures
¥51 million investment in intangible assets during the first half
Annual Dividend
Annual¥2 per share
Acquisition of treasury shares
Approximately ¥150 million
Number of Shares384,300 shares
PeriodConducted in the first half. The purchase authorization consisted of 2 tranches
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥2,623 million (YoY +28.0%)
Operating profit¥59 million
Ordinary income¥57 million
Net income¥17 million
Gross Profit Margin23.2%
Operating profit margin2.3%
Selling, general and administrative expenses¥549 million
Results for the three months of the current quarterNet Sales ¥1,378 million (YoY +19.2%) / Gross profit ¥306 million (YoY +6.3%) / Operating profit ¥23 million (YoY -51.1%) / Ordinary income ¥21 million (YoY -62.5%) / Net income ¥-1 million (YoY -103.6%) / Gross Profit Margin 22.2% / Operating profit margin 1.7%
Full-year earnings forecastNet Sales ¥5,700 million / Operating profit ¥480 million / Ordinary income ¥480 million / Net income ¥300 million
Progress against full-year forecastNet Sales 46.0% / Operating profit 12.4% / Ordinary income 12.0% / Net income 5.8% / Projected cumulative revenue through 3Q 76.7%〜78.4% / Projected cumulative operating income through 3Q 37.7%〜54.2%
Self-assessment against the planRevenue has generally tracked the plan. Cumulative revenue progress through the third quarter is proceeding smoothly. The full-year forecasts remain unchanged.
Breakdown of Factors Affecting the ChangeProjects shifted between periods ¥204 million in revenue and ¥96 million in gross profit shifted to the third quarter and beyond / Direct project costs +¥329 million (cumulative through 2Q) / Common costs +¥18 million (cumulative through 2Q) / Provision for order-related losses +¥42 million (year on year, cumulative through 2Q) / Loss on sale of investment securities ¥54.6 million / Gain on donation of fixed assets ¥38.9 million / Net extraordinary gain (loss) -¥15.7 million
Key KPIsEBITDA ¥298 million (cumulative 2Q), EBITDA margin 10.5% (cumulative through 2Q), Recurring Revenue ¥565 million (standalone 2Q), Recurring revenue mix 41.0% (standalone 2Q), Equity ratio 62.5%
Assumptions Underlying the Business OutlookProjected 3Q revenue ¥1,748–1,847 million / Projected 3Q operating income ¥181–260 million / Projected cumulative revenue through 3Q ¥4,371–4,470 million / Full-year revenue plan ¥5,700 million
Medium-term management plan targetsNext Medium-Term Management Plan 2027–2029 / Extension based on the current medium-term plan ¥7.5 billion
Annual DividendAnnual ¥2 per share / Interim Not disclosed / End of period Not disclosed
Acquisition of treasury sharesAmount Approximately ¥150 million / Number of Shares 384,300 shares / Period Conducted in the first half. The purchase authorization consisted of 2 tranches
Capital expenditures¥51 million (investment in intangible assets during the first half)
New initiativesRelease of the outline of the new medium-term management plan for 2027–2029, Planned overseas rollout of a securities white-label service for SBI Thai Online Securities, Joint development of the next-generation AI information platform with MINKABU, Launch of a proof of concept for LastEvidence with SBI Securities, Integration with DiscoverFeed's decentralized data platform, Launch of an AI-powered penetration testing service, Adoption of SpotPath by 立花証券, Addition of a U.S. stock accumulation feature to DMM.com Securities' "つみたてかぶ", Establishment of the On-Chain Strategy Office and launch of the AI × On-Chain Financial Strategy Council
Items this document does not state (10)
Segment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsPayout ratioOrders 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 first-half revenue and profit growth and return to profitability were attributable to improved project profitability and growth accompanied by higher earnings quality. The decline in the standalone second-quarter margin was attributed to a temporary factor: the capitalization of software assets associated with the release of products using a shared platform was significantly higher in the same period of the previous year. Acceptance of 7 projects, representing ¥204 million in revenue, was also deferred, shifting revenue recognition from the second quarter to the third quarter and beyond.

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | TRADE WORKS Co.,Ltd (3997) timely disclosure | Komori