Worth reading
63In 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
385
¥ millionWording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationThird quarter of the fiscal year ending December 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,084 million+3.0%
Operating profit¥910 million-22.0%
Ordinary income¥911 million-22.0%
Net income¥593 million-23.0%
Results for the three months of the current quarterQuarterly trends in revenue, cloud revenue and operating profit are presented in a graph, but the standalone figures for the quarter are Not disclosed.
Full-year earnings forecast
Net Sales
¥6,000 million
Operating profit
¥1,601 million
Ordinary income
¥1,609 million
Net income for the current fiscal year
¥1,050 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 Sales68%
Operating profit57%
Ordinary income57%
Net income for the current fiscal year56%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Cost Increases
¥385 million
Personnel Expenses
¥120 million
Cloud costs
¥75 million
Software amortization
¥233 million
New initiatives
- Launch of sales of the new NRL-3 time recorder
- Accelerated migration of existing on-premises customers to the Universal Kintaro workforce management system
- Cloud service price revisions to be applied progressively from July 2027
- Strengthening of the cloud platform, data integration, and visualization and forecasting platforms
- Introduction of a smoking cessation challenge support program and an exercise habit support subsidy program
Key KPIsA metric the company considers important as a management benchmark.
- Number of cloud subscription licenses914,907 LicensingYear on year against the same period last year+19%
- Contracted companies2,790 companiesYear on year against the same period last year+9%
- Recurring revenue ratio79.3 %Year on year against the same period last year+9.7pt
- Cloud churn rate0.19 %
- Five-year average annual growth rate in cloud contract licenses19.9 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
ARPU
Enterprise
September 2026¥391
Volume
Number of cloud subscription licenses
914,907 Licensing
Year on year against the same period last year+19%
Segment results
Cloud business
Net Sales
¥3,331 million+17.0%
On-premises business
Net Sales
¥675 million-31.0%
Real estate leasing business
Net Sales
¥77 million-33.0%
Cloud licenses
Net Sales
¥2,825 million+25.0%
Recurring Revenue
¥3,179 million+19.0%
Medium-term management plan targets
Revised plan
Fiscal year ending December 2026
Net Sales
¥6,000 million
Operating profit
¥1,601 million
Operating profit margin
26.7 %
Initial Three-Year Plan
Fiscal year ending December 2026
Net Sales
¥5,700 million
Operating profit
¥1,215 million
Operating profit margin
21.3 %
Market Size / Share
Employment management
¥303 100 million
CAGR8.5%
Human resources and payroll management
¥563 100 million
CAGR13.4%
Talent Management
¥498 100 million
CAGR13.1%
Labor Management
¥310 100 million
CAGR25.6%
Health Management B2B
¥139 100 million
CAGR7.6%
Health Management B2B2E
¥29 100 million
CAGR18.1%
Groupware
¥164 100 million
CAGR12.5%
Expense reimbursement
¥456 100 million
CAGR12.5%
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Third quarter of the fiscal year ending December 2026 |
| Net Sales | ¥4,084 million (YoY +3.0%) |
| Operating profit | ¥910 million (YoY -22.0%) |
| Ordinary income | ¥911 million (YoY -22.0%) |
| Net income | ¥593 million (YoY -23.0%) |
| Results for the three months of the current quarter | Quarterly trends in revenue, cloud revenue and operating profit are presented in a graph, but the standalone figures for the quarter are Not disclosed. |
| Full-year earnings forecast | Net Sales ¥6,000 million / Operating profit ¥1,601 million / Ordinary income ¥1,609 million / Net income for the current fiscal year ¥1,050 million |
| Progress against full-year forecast | Net Sales 68% / Operating profit 57% / Ordinary income 57% / Net income for the current fiscal year 56% |
| Segment results | Cloud business Net Sales ¥3,331 million (YoY +17.0%) / On-premises business Net Sales ¥675 million (YoY -31.0%) / Real estate leasing business Net Sales ¥77 million (YoY -33.0%) / Cloud licenses Net Sales ¥2,825 million (YoY +25.0%) / Recurring Revenue ¥3,179 million (YoY +19.0%) |
| Breakdown of Factors Affecting the Change | Cost Increases ¥385 million / Personnel Expenses ¥120 million / Cloud costs ¥75 million / Software amortization ¥233 million |
| Key KPIs | Number of cloud subscription licenses 914,907 Licensing, Contracted companies 2,790 companies, Recurring revenue ratio 79.3 %, Cloud churn rate 0.19 %, Five-year average annual growth rate in cloud contract licenses 19.9 % |
| Unit price and quantity metrics | ARPU Enterprise September 2026 ¥391 / Year on year against the same period last year Not disclosed / Volume Number of cloud subscription licenses 914,907 Licensing |
| Medium-term management plan targets | Revised plan Fiscal year ending December 2026 Net Sales ¥6,000 million / Operating profit ¥1,601 million / Operating profit margin 26.7 % / Initial Three-Year Plan Fiscal year ending December 2026 Net Sales ¥5,700 million / Operating profit ¥1,215 million / Operating profit margin 21.3 % |
| Market Size / Share | Employment management Market Size ¥303 100 million / CAGR 8.5% / Human resources and payroll management Market Size ¥563 100 million / CAGR 13.4% / Talent Management Market Size ¥498 100 million / CAGR 13.1% / Labor Management Market Size ¥310 100 million / CAGR 25.6% / Health Management B2B Market Size ¥139 100 million / CAGR 7.6% / Health Management B2B2E Market Size ¥29 100 million / CAGR 18.1% / Groupware Market Size ¥164 100 million / CAGR 12.5% / Expense reimbursement Market Size ¥456 100 million / CAGR 12.5% |
| New initiatives | Launch of sales of the new NRL-3 time recorder, Accelerated migration of existing on-premises customers to the Universal Kintaro workforce management system, Cloud service price revisions to be applied progressively from July 2027, Strengthening of the cloud platform, data integration, and visualization and forecasting platforms, Introduction of a smoking cessation challenge support program and an exercise habit support subsidy program |
Items this document does not state (15)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesSelf-assessment against the planNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual 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.Growth in cloud license revenue offset the decline in the on-premises business, while upfront investment increased, including software amortization expenses associated with the release of new functions and personnel expenses related to securing staff.
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.