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Presentation materials on financial results4412Science Arts,Inc.Information and Communications, Services and Others

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

For the nine months ended May 2026, orders from new customers, including public-sector, healthcare and nursing care customers, increased, resulting in significantly higher revenue and profit than in the same period of the previous year. The full-year plan was revised, and ARR is expected to reach the full-year target based on the assumption of accelerating growth over the four quarters.

Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
34.9
% (year-on-year increase in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials on financial resultsFY ending August 2026, third quarter9 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,564 million+34.9%
Operating profit¥149 million+160.6%
Ordinary income¥147 million+253.5%
Net income¥125 million+268.7%
Selling, general and administrative expenses¥829 million
Gross Profit Margin
Rate62.6%
Year on year against the same period last year+0.8pt
Operating profit margin
Rate9.5%
Year on year against the same period last year+4.6pt
Results for the three months of the current quarter
Net Sales
¥536 million
Year on year against the same period last year+24.6%
Operating profit
¥44 million
Year on year against the same period last year+78.7%
Ordinary income
¥44 million
Year on year against the same period last year+82.0%
Net income
¥38 million
Year on year against the same period last year+101.4%
Full-year earnings forecast
Net Sales
¥2,130 million
Cost of sales
¥791 million
Gross profit
¥1,338 million
Selling, general and administrative expenses
¥1,118 million
Operating profit
¥220 million
Ordinary income
¥218 million
Net income
¥188 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 Sales73.4%
Buddycom revenue72.7%
Accessories revenue74.5%
Other net sales81.3%
Cost of sales74.0%
Gross profit73.1%
Gross Profit Margin-0.3pt
Selling, general and administrative expenses74.2%
Operating profit67.8%
Operating profit margin-0.8pt
Ordinary income67.4%
Net income66.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Number of IDs, number of contracted companies and contracted unit price are progressing as planned
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesOrders from new customers, including public-sector, healthcare and nursing care customers, and lower replacement demand for accessories
Selling, general and administrative expenses
Personnel Expenses
¥80 million
One-time costs associated with the relocation plan
¥31 million
Other
¥58 million
New initiatives
  • Joint development of an IP radio with JVC Kenwood
  • Target for the formal launch in FY2027 of Buddycom's remote customer service feature, Call
  • Expansion into an AI infrastructure platform for frontline operations
Key KPIsA metric the company considers important as a management benchmark.
  • ARR¥1,377 million
    Year on year against the same period last year+29.9%
  • Monthly churn rate0.41%
  • Number of IDs+27.9% year on year
    Year on year against the same period last year+27.9%
  • Number of contracted companies1,828 companies
    Year on year against the same period last year+25.0%
  • Contract unit price¥704 thousand
    Year on year against the same period last year+3.9%
  • Number of customer companiesMore than 1,800 companies
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of IDs+27.9% year on year
  • Price per IDIndex with 100 as the base
  • Number of contracted companies1,828 companies
  • Contract unit price¥704 thousand
Segment results
Buddycom
Net Sales
¥885 million+36.7%
Accessories
Net Sales
¥679 million+32.9%
Other
Net Sales
¥0 million-85.3%
Medium-term management plan targets
Target fiscal yearFiscal year ending August 2030
Net Sales¥5 billion+
Operating profit¥1 billion+
Market Size / Share
Domestic frontline worker populationApproximately 40 million people
Buddycom market shareStatement of the aim to become No. 1
Number of employees
Number of Employees76 People
As ofEnd of May 2026
Change during the periodUp 17 people during the period
Contents of this document
ItemDetails
Document typePresentation materials on financial results
Fiscal Period CoveredFY ending August 2026, third quarter
Net Sales¥1,564 million (YoY +34.9%)
Operating profit¥149 million (YoY +160.6%)
Ordinary income¥147 million (YoY +253.5%)
Net income¥125 million (YoY +268.7%)
Gross Profit MarginRate 62.6% / Year on year against the same period last year +0.8pt
Operating profit marginRate 9.5% / Year on year against the same period last year +4.6pt
Selling, general and administrative expenses¥829 million
Results for the three months of the current quarterNet Sales ¥536 million / Operating profit ¥44 million / Ordinary income ¥44 million / Net income ¥38 million
Full-year earnings forecastNet Sales ¥2,130 million / Cost of sales ¥791 million / Gross profit ¥1,338 million / Selling, general and administrative expenses ¥1,118 million / Operating profit ¥220 million / Ordinary income ¥218 million / Net income ¥188 million
Progress against full-year forecastNet Sales 73.4% / Buddycom revenue 72.7% / Accessories revenue 74.5% / Other net sales 81.3% / Cost of sales 74.0% / Gross profit 73.1% / Gross Profit Margin -0.3pt / Selling, general and administrative expenses 74.2% / Operating profit 67.8% / Operating profit margin -0.8pt / Ordinary income 67.4% / Net income 66.5%
Self-assessment against the planNumber of IDs, number of contracted companies and contracted unit price are progressing as planned
Segment resultsBuddycom Net Sales ¥885 million (YoY +36.7%) / Accessories Net Sales ¥679 million (YoY +32.9%) / Other Net Sales ¥0 million (YoY -85.3%)
Breakdown of Factors Affecting the ChangeNet Sales Orders from new customers, including public-sector, healthcare and nursing care customers, and lower replacement demand for accessories / Selling, general and administrative expenses Personnel Expenses ¥80 million / One-time costs associated with the relocation plan ¥31 million / Other ¥58 million
Key KPIsIndicator name ARR / Value ¥1,377 million / Year on year against the same period last year +29.9%, Indicator name Monthly churn rate / Value 0.41% / Year on year against the same period last year Not disclosed, Indicator name Number of IDs / Value +27.9% year on year / Year on year against the same period last year +27.9%, Indicator name Number of contracted companies / Value 1,828 companies / Year on year against the same period last year +25.0%, Indicator name Contract unit price / Value ¥704 thousand / Year on year against the same period last year +3.9%, Indicator name Number of customer companies / Value More than 1,800 companies / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Number of IDs / Value +27.9% year on year, Indicator name Price per ID / Value Index with 100 as the base, Indicator name Number of contracted companies / Value 1,828 companies, Indicator name Contract unit price / Value ¥704 thousand
Number of employeesNumber of Employees 76 People / As of End of May 2026 / Change during the period Up 17 people during the period
Medium-term management plan targetsTarget fiscal year Fiscal year ending August 2030 / Net Sales ¥5 billion+ / Operating profit ¥1 billion+
Market Size / ShareDomestic frontline worker population Approximately 40 million people / Buddycom market share Statement of the aim to become No. 1
New initiativesJoint development of an IP radio with JVC Kenwood, Target for the formal launch in FY2027 of Buddycom's remote customer service feature, Call, Expansion into an AI infrastructure platform for frontline operations
Items this document does not state (10)
Number of stores and locationsAssumptions 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.

Although replacement demand for accessories was limited, orders from new customers, particularly in the public-sector, healthcare and nursing care sectors, were strong. On the profit front, the company is making upfront investments by stepping up hiring of development and sales personnel.

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Financial Results Presentation for the Third Quarter of the Fiscal Year Ending August 2026 | Science Arts,Inc. (4412) timely disclosure | Komori