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Financial results presentation4179G-NEXT Inc.Information and Communications, Services and Others

Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027

For the six months ended 30 September 2026, revenue increased due to the expansion of hardware projects and growth in the software business, while the operating loss narrowed from the same period of the previous year. The full-year forecast remains unchanged, and the company is targeting a return to profitability through the concentration of projects in the second half.

Worth reading
62In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
55
Year-on-year change (revenue, %)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 20275 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales546,379 Thousands of yen+55.0%
Operating profit-26,476 Thousands of yen
Ordinary income-39,169 Thousands of yen
Net income-18,501 Thousands of yen
Selling, general and administrative expenses227,545 Thousands of yen
Gross Profit Margin
rate_pct36.8
Results for the three months of the current quarter
Operating loss
-12 Millions of yen
Full-year earnings forecast
Net Sales
1,500～1,600
Operating profit
30～40
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 SalesApproximately 34–36%
What the company explained in this material
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The plan is weighted toward the second half. Projects for the hardware and new businesses are expected to be concentrated in the second half. Numerical assumptions: not disclosed
New initiatives
  • Webinar co-hosted with RevComm
  • Promoting automation using Discoveriez AI and voice AI
  • Commercial launch of the G-NEXT GPU cloud
  • Development and initial monetization of the AI data center business
  • Accelerating business alliances and considering capital and business alliances and M&A
Key KPIsA metric the company considers important as a management benchmark.
  • Recurring revenue247 Millions of yen
    Year on year against the same period last year+8.6% (+¥20 million)
  • Stock revenue ratio45.2 %
  • Monthly churn rate0.91 %
    Year on year against the same period last yearTemporarily increased
  • Cloud MRR growth rate7.24 %
  • Cloud revenue ratio78.9 %
  • Cloud revenue growth rate-8.1 %
    Year on year against the same period last yearYear-on-year change
  • Software gross profit growth rate50.5 %
    Year on year against the same period last yearYear-on-year change
Segment results
  • Software (Discoveriez)
    Net Sales343 Millions of yen
    Year on year against the same period last year+61%
  • Solutions
    Net Sales22 Millions of yen
    Year on year against the same period last yearDeclined (rate: Not disclosed)
  • Hardware
    Net Sales181 Millions of yen
    Year on year against the same period last year+343%
Medium-term management plan targets
Target fiscal yearFY2028
Net Sales¥2,500 million or more
Operating profit¥90 million or more
Market capitalization¥7,000 million or more in market capitalization
Key KPIs
Sales growth rateCAGR +50%
Stock revenue ratio40% or more
Average monthly customer spend¥1 million or more per month
Churn rateBelow 0.8%
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales546,379 Thousands of yen (YoY +55.0%)
Operating profit-26,476 Thousands of yen
Ordinary income-39,169 Thousands of yen
Net income-18,501 Thousands of yen
Gross Profit Marginrate_pct 36.8 / yoy_change_points Not disclosed
Selling, general and administrative expenses227,545 Thousands of yen
Results for the three months of the current quarterOperating loss -12 Millions of yen
Full-year earnings forecastNet Sales 1,500～1,600 / Operating profit 30～40 / Ordinary income Not disclosed / Net income Not disclosed
Progress against full-year forecastNet Sales Approximately 34–36%
Segment resultsName Software (Discoveriez) / Net Sales 343 Millions of yen / Year on year against the same period last year +61% / Profit Not disclosed, Name Solutions / Net Sales 22 Millions of yen / Year on year against the same period last year Declined (rate: Not disclosed) / Profit Not disclosed, Name Hardware / Net Sales 181 Millions of yen / Year on year against the same period last year +343% / Profit Not disclosed
Key KPIsIndicator name Recurring revenue / Value 247 Millions of yen / Year on year against the same period last year +8.6% (+¥20 million), Indicator name Stock revenue ratio / Value 45.2 % / Year on year against the same period last year Not disclosed, Indicator name Monthly churn rate / Value 0.91 % / Year on year against the same period last year Temporarily increased, Indicator name Cloud MRR growth rate / Value 7.24 % / Year on year against the same period last year Not disclosed, Indicator name Cloud revenue ratio / Value 78.9 % / Year on year against the same period last year Not disclosed, Indicator name Cloud revenue growth rate / Value -8.1 % / Year on year against the same period last year Year-on-year change, Indicator name Software gross profit growth rate / Value 50.5 % / Year on year against the same period last year Year-on-year change
Assumptions Underlying the Business OutlookThe plan is weighted toward the second half. Projects for the hardware and new businesses are expected to be concentrated in the second half. Numerical assumptions: not disclosed
Medium-term management plan targetsTarget fiscal year FY2028 / Net Sales ¥2,500 million or more / Operating profit ¥90 million or more / Market capitalization ¥7,000 million or more in market capitalization / Key KPIs Sales growth rate CAGR +50% / Stock revenue ratio 40% or more / Average monthly customer spend ¥1 million or more per month / Churn rate Below 0.8%
New initiativesWebinar co-hosted with RevComm, Promoting automation using Discoveriez AI and voice AI, Commercial launch of the G-NEXT GPU cloud, Development and initial monetization of the AI data center business, Accelerating business alliances and considering capital and business alliances and M&A
Items this document does not state (15)
Operating profit marginSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout 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.

Revenue increased and profitability improved as the hardware business expanded project wins and the software business continued to grow licenses, revise prices, generate upselling revenue and migrate customers to the cloud. However, the gross profit margin declined as the hardware mix increased.

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.
Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | G-NEXT Inc. (4179) timely disclosure | Komori