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Financial results presentation4428sinops Inc.Information and Communications, Services and Others

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

For the nine months ended Q3, revenue increased 3.3% year on year, while operating profit declined 31.0% due to higher cost of sales and lower sales of high-margin packages. Recurring-revenue metrics, including cloud revenue, ARR and the number of paid accounts, expanded. The full-year earnings forecast remains unchanged.

Worth reading
62In 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
64
¥ million (year-on-year decrease in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationQ3 of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,517 Millions of yen+3.3%
Operating profit143 Millions of yen-31.0%
Ordinary income166 Millions of yen-20.5%
Net income106 Millions of yen-16.4%
Gross Profit Margin38.9 %
Operating profit margin9.4 %
Selling, general and administrative expenses447 Millions of yen
Results for the three months of the current quarter
Net Sales
Year on year against the same period last year+11.3%
Operating profit
38 Millions of yen+35.7%
Operating profit margin
7.4 %
Full-year earnings forecast
Net Sales
2,344 Millions of yen
Operating profit
390 Millions of yen
Ordinary income
392 Millions of yen
Net income
272 Millions of yen
Package
35 Millions of yen
Implementation Support
654 Millions of yen
Support
413 Millions of yen
Cloud
1,240 Millions of yen
ARR
1,670 Millions of yen
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 Sales64.7
Package103.9
Implementation Support31.5
Support74.5
Cloud77.9
Operating profit36.7
Ordinary income42.5
Net income39.3
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Cloud revenue
    Change in amount154
  • Implementation support revenue
    Change in amount-52
  • Package revenue
    Change in amount-72
  • Cloud ARR from cloud contracts with new users
    Change in amount72
  • Cloud ARR from expansion and upselling to existing users
    Change in amount147
  • Support and rental ARR
    Change in amount-105
  • Total ARR
    Change in amount113
  • Communication expenses
    Change Rate+28.0%
  • Outsourcing costs
    Change Rate+9.7%
  • Personnel expenses
    Change Rate+4.2%
New initiatives
  • Increase fees for "sinops-CLOUD" and other services by 8% from current rates at contract renewal from March 2027 onward
  • Pilot implementation of "sinops-WLMS WORK" and rollout to large multi-format retail businesses
  • Launch of a pilot project for the new "AI demand forecasting × automated delivery" service
  • Growth investment in the new businesses "DeCM-PF" and "WLMS"
  • Company-wide operational efficiency improvements through the use of AI
Key KPIsA metric the company considers important as a management benchmark.
  • Grocery supermarket share37.2 %
    Year on year against the same period last year+0.2pt
  • Retail share19.1 %
    Year on year against the same period last year+0.1pt
  • Contracted companies119 companies
    Year on year against the same period last year+0 companies
  • ARR1,626 Millions of yen
    Year on year against the same period last year+7.5%
  • NRR (cloud, 2026 average)101.2 %
  • NRR (cloud, Q3 2026 average)100.6 %
  • Stock revenue ratio84 %
    Year on year against the same period last year+9.1pt
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Paid account count
16,593 Accounts
yoy+3172 accounts
Number of cloud-paying stores
4,147 stores
yoy+883 stores
Paid accounts per store
4 Accounts/store
yoy+0.0 accounts
Medium-term management plan targets
Period Covered2026–2028
Existing-business revenue growth15% annual average
New BusinessesBegin making a significant contribution to revenue from 2028
Market Size / Share
Grocery supermarket share37.2
Retail share19.1
Food waste reduction solutions marketNo. 1 market share for 3 consecutive years
Target retail market299 retailers with revenue of ¥40 billion or more, ¥6.94 trillion
Number of stores and locations
Number of cloud-paying stores
End of period4,147 stores
Additions during the period+883 stores
Number of employees
114 People as of the end of September 2026
Change during the period+4 people versus the 2025 fiscal year-end
Hiring planRecruitment is progressing broadly as planned
Annual Dividend
¥17 per share
Interim8
End of period9
Payout ratio
40 % approximate
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredQ3 of the fiscal year ending December 2026
Net Sales1,517 Millions of yen (YoY +3.3%)
Operating profit143 Millions of yen (YoY -31.0%)
Ordinary income166 Millions of yen (YoY -20.5%)
Net income106 Millions of yen (YoY -16.4%)
Gross Profit Margin38.9 %
Operating profit margin9.4 %
Selling, general and administrative expenses447 Millions of yen
Results for the three months of the current quarterNet Sales value Not disclosed / yoy_pct 11.3 Millions of yen / Operating profit 38 Millions of yen (YoY +35.7%) / Operating profit margin 7.4 %
Full-year earnings forecastNet Sales 2,344 Millions of yen / Operating profit 390 Millions of yen / Ordinary income 392 Millions of yen / Net income 272 Millions of yen / Package 35 Millions of yen / Implementation Support 654 Millions of yen / Support 413 Millions of yen / Cloud 1,240 Millions of yen / ARR 1,670 Millions of yen
Progress against full-year forecastNet Sales 64.7 / Package 103.9 / Implementation Support 31.5 / Support 74.5 / Cloud 77.9 / Operating profit 36.7 / Ordinary income 42.5 / Net income 39.3
Breakdown of Factors Affecting the ChangeItem Cloud revenue / Change in amount 154 Millions of yen, Item Implementation support revenue / Change in amount -52 Millions of yen, Item Package revenue / Change in amount -72 Millions of yen, Item Cloud ARR from cloud contracts with new users / Change in amount 72 Millions of yen, Item Cloud ARR from expansion and upselling to existing users / Change in amount 147 Millions of yen, Item Support and rental ARR / Change in amount -105 Millions of yen, Item Total ARR / Change in amount 113 Millions of yen, Item Communication expenses / Change Rate 28 %, Item Outsourcing costs / Change Rate 9.7 %, Item Personnel expenses / Change Rate 4.2 %
Key KPIsIndicator name Grocery supermarket share / Value 37.2 % / Year on year against the same period last year +0.2pt, Indicator name Retail share / Value 19.1 % / Year on year against the same period last year +0.1pt, Indicator name Contracted companies / Value 119 companies / Year on year against the same period last year +0 companies, Indicator name ARR / Value 1,626 Millions of yen / Year on year against the same period last year +7.5%, Indicator name NRR (cloud, 2026 average) / Value 101.2 % / Year on year against the same period last year Not disclosed, Indicator name NRR (cloud, Q3 2026 average) / Value 100.6 % / Year on year against the same period last year Not disclosed, Indicator name Stock revenue ratio / Value 84 % / Year on year against the same period last year +9.1pt
Unit price and quantity metricsPaid account count 16,593 Accounts / Number of cloud-paying stores 4,147 stores / Paid accounts per store 4 Accounts/store
Number of stores and locationsNumber of cloud-paying stores End of period 4,147 stores / Additions during the period +883 stores / Store and location openings/closures Not disclosed
Number of employees114 People (as of the end of September 2026)
Medium-term management plan targetsPeriod Covered 2026–2028 / Existing-business revenue growth 15% annual average / New Businesses Begin making a significant contribution to revenue from 2028
Annual Dividend¥17 per share
Payout ratio40 % (approximate)
Market Size / ShareGrocery supermarket share 37.2 / Retail share 19.1 / Food waste reduction solutions market No. 1 market share for 3 consecutive years / Target retail market 299 retailers with revenue of ¥40 billion or more, ¥6.94 trillion
New initiativesIncrease fees for "sinops-CLOUD" and other services by 8% from current rates at contract renewal from March 2027 onward, Pilot implementation of "sinops-WLMS WORK" and rollout to large multi-format retail businesses, Launch of a pilot project for the new "AI demand forecasting × automated delivery" service, Growth investment in the new businesses "DeCM-PF" and "WLMS", Company-wide operational efficiency improvements through the use of AI
Items this document does not state (9)
Self-assessment against the planSegment resultsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition 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.

The main factors behind the decline in operating profit were higher server usage fees and communications costs associated with cloud revenue growth, increased outsourcing costs related to product development and operational improvements, and lower sales of high-margin packages. Revenue from implementation support declined as customers assessed their system investment plans, among other factors.

How to read this page

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Financial Results Presentation for the Third Quarter of the Fiscal Year Ending December 2026 | sinops Inc. (4428) timely disclosure | Komori