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Presentation materials for financial results4397TeamSpirit Inc.Information and Communications, Services and Others

Financial Results Presentation for the Third Quarter of the Fiscal Year Ending August 2026

In the third quarter of the fiscal year ending August 2026, both revenue and operating income exceeded the year-earlier period, and cumulative operating income surpassed the full-year forecast. However, net ARR additions were limited as sales discussions lengthened due to Salesforce security enhancements, so the full-year forecast was left unchanged.

Worth reading
61In 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
60.8
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFY ending August 2026, third quarter6 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,432 million+24.7%
Operating profit¥431 million+60.8%
Ordinary income¥429 million+57.4%
Net income¥294 million+30.6%
Operating profit margin9.7 %
Results for the three months of the current quarter
Net Sales
¥1,551 million+25.4%
Operating profit
¥198 million+48.2%
Ordinary income
¥197 million+47.0%
Net income
¥136 million+18.2%
Operating profit margin
12.8 %
yoy_change_pt2
Full-year earnings forecast
Net Sales
¥5,700 million
License revenue
¥4,600 million
Professional services revenue
¥1,100 million
Operating profit
¥430 million
Ordinary income
¥430 million
Net income
¥320 million
ARR
5,000〜5,100
Net ARR additions
600〜700
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 Sales77.8
License revenue74.1
Professional services revenue93.2
Operating profit100.2
Ordinary income99.9
Net income92
Net ARR additions44.6%〜52.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue is progressing well at more than 75% of the full-year plan, while operating income has exceeded the initial plan.
New initiatives
  • Release of the TeamSpirit AI Shift Agent is scheduled for August 2026.
  • Development and implementation of the AI Shift Agent using OCI and Oracle Autonomous AI Database, with support from Oracle.
  • Development of user support features to address Salesforce security enhancements.
  • Preparation and investment to expand the enterprise business.
  • Investment in AI-enabled product and feature enhancements.
Key KPIsA metric the company considers important as a management benchmark.
  • ARR¥4,727 million+12.4%
    qoq_pct1.1
  • Number of licenses734,882 Licensing+19.1%
    qoq_pct2.3
  • Gross monthly churn rate0.5 %
    yoy_change_pt0.09
  • Net monthly churn rate-0.14 %
  • Recurring revenue ratio82.8 %
    yoy_change_pt-7.9
    qoq_change_pt-0.7
  • Number of contracted companies2,229 companies
    yoy_change101
    qoq_change-5
  • Revenue per employee¥28,590 thousand+20.5%
Medium-term management plan targets
Target fiscal yearFiscal year ending August 2028
Net Sales
78 Hundreds of millions of yen
ARR
70 Hundreds of millions of yen
Operating profit margin
15 %
Number of employees
214 people
yoy_change5
qoq_change-6
Acquisition of treasury shares
The material states that share repurchases have been conducted, but the repurchase limit, number of shares and period are not disclosed
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFY ending August 2026, third quarter
Net Sales¥4,432 million (YoY +24.7%)
Operating profit¥431 million (YoY +60.8%)
Ordinary income¥429 million (YoY +57.4%)
Net income¥294 million (YoY +30.6%)
Operating profit margin9.7 %
Results for the three months of the current quarterNet Sales ¥1,551 million (YoY +25.4%) / Operating profit ¥198 million (YoY +48.2%) / Ordinary income ¥197 million (YoY +47.0%) / Net income ¥136 million (YoY +18.2%) / Operating profit margin 12.8 %
Full-year earnings forecastNet Sales ¥5,700 million / License revenue ¥4,600 million / Professional services revenue ¥1,100 million / Operating profit ¥430 million / Ordinary income ¥430 million / Net income ¥320 million / ARR 5,000〜5,100 / Net ARR additions 600〜700
Progress against full-year forecastNet Sales 77.8 / License revenue 74.1 / Professional services revenue 93.2 / Operating profit 100.2 / Ordinary income 99.9 / Net income 92 / Net ARR additions 44.6%〜52.1%
Self-assessment against the planRevenue is progressing well at more than 75% of the full-year plan, while operating income has exceeded the initial plan.
Key KPIsARR ¥4,727 million (YoY +12.4%), Number of licenses 734,882 Licensing (YoY +19.1%), Gross monthly churn rate 0.5 %, Net monthly churn rate -0.14 %, Recurring revenue ratio 82.8 %, Number of contracted companies 2,229 companies, Revenue per employee ¥28,590 thousand (YoY +20.5%)
Number of employees214 people
Medium-term management plan targetsTarget fiscal year Fiscal year ending August 2028 / Net Sales 78 Hundreds of millions of yen / ARR 70 Hundreds of millions of yen / Operating profit margin 15 %
Acquisition of treasury sharesThe material states that share repurchases have been conducted, but the repurchase limit, number of shares and period are not disclosed
New initiativesRelease of the TeamSpirit AI Shift Agent is scheduled for August 2026., Development and implementation of the AI Shift Agent using OCI and Oracle Autonomous AI Database, with support from Oracle., Development of user support features to address Salesforce security enhancements., Preparation and investment to expand the enterprise business., Investment in AI-enabled product and feature enhancements.
Items this document does not state (15)
Gross Profit MarginSelling, general and administrative expensesSegment resultsBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioCapital 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.

Operating income increased due to the effect of higher revenue and cost controls. While some sales discussions were prolonged and shifted between periods due to the mandatory implementation of Salesforce security enhancements, the full-year forecast was left unchanged because investments are expected in the fourth quarter in user support features, the enterprise business, and product and feature enhancements using AI.

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Financial Results Presentation for the Third Quarter of the Fiscal Year Ending August 2026 | TeamSpirit Inc. (4397) timely disclosure | Komori