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Presentation materials for financial results4847INTELLIGENT WAVE INC.Information and Communications, Services and Others

Financial Results Briefing Materials for the Third Quarter of the Fiscal Year Ending June 2026

For the nine months ended March 2026, revenue increased 8.4% year on year, while profit declined due to prolonged quality-related measures and the impact of the product mix in the security business. Accordingly, the full-year forecasts for revenue, operating profit, ordinary profit and net profit were revised downward.

Worth reading
71In focus
Scored from 4 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
400
¥ million (downward revision to the operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsThird quarter of the fiscal year ending June 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥12,497 million+8.4%
Operating profit¥1,361 million-5.8%
Ordinary income¥1,391 million-4.7%
Net income¥951 million-7.1%
Selling, general and administrative expenses¥2,122 million
Gross Profit Margin
Rate27.9%
Year on year against the same period last year30.6% in the prior year
Operating profit margin
Rate10.9%
Year on year against the same period last year12.5% in the prior year
Results for the three months of the current quarterGraphs showing quarterly trends in gross profit, SG&A expenses, operating profit and the respective margins
Full-year earnings forecast
Net Sales
¥17,200 million
Operating profit
¥2,000 million
Ordinary income
¥2,050 million
Net income for the current fiscal year
¥1,420 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Systems development revenue was secured to a certain extent against the plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profit
Revenue Growth+¥300 million
Decline in gross margin-¥349 million
Increase in SG&A expenses-¥34 million
Change in SG&A expenses
Personnel Expenses+¥47 million
Recruiting and training expenses+¥9 million
Equipment, maintenance and other expenses+¥14 million
Advertising expenses-¥30 million
Other-¥6 million
New initiatives
  • Reassessment and remediation of the development process, development structure and quality management process
  • Restructuring of PM development and quality training programs
  • Consolidation and efficiency improvements in systems operations and the infrastructure platform
  • Migration to a new version of FEP products and consolidation of the product lineup
  • Enhancement of measures against fraudulent card use
  • Expansion of the value provided by CWAT and diversification of the revenue model
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥10,976 million
    Year on year against the same period last year-32.0%
  • Order backlog¥18,790 million
    Year on year against the same period last year-11.3%
  • FEP market share73 %
  • Fraud detection market share62 %
  • Number of employees513 People
Segment results
Payments
Net Sales
¥10,374 million
Year on year against the same period last year+9.8%
FEP
Net Sales
¥4,521 million
Year on year against the same period last year+10.5%
Fraud detection
Net Sales
¥2,541 million
Year on year against the same period last year+36.2%
Acquiring
Net Sales
¥1,904 million
Year on year against the same period last year-13.1%
Other (payments)
Net Sales
¥1,406 million
Year on year against the same period last year+8.0%
Security
Net Sales
¥1,470 million
Year on year against the same period last year-0.7%
Data communications and analytics platform
Net Sales
¥652 million
Year on year against the same period last year+9.2%
Medium-term management plan targets
Target fiscal yearFiscal year ending June 2027
Net Sales¥19.0 billion
Operating profit¥2.85 billion
ROE17.0% or higher
Medium- to Long-Term TargetsRevenue of approximately ¥30 billion and an operating margin of 18.0% or higher
Financial targets
ROE
Target17.0% or higher
Actual results14.4% for the fiscal year ended June 2025
Market Size / Share
FEP73% (number of adopting companies among the 25 major credit card companies, as of September 2025)
Fraud detection62% (number of adopting companies among the 25 major credit card companies, as of September 2025)
Orders received and order backlog
Orders received
¥10,976 million
Order backlog
¥18,790 million
Number of employees
Number of Employees513 People
Record dateEnd of December 2025
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredThird quarter of the fiscal year ending June 2026
Net Sales¥12,497 million (YoY +8.4%)
Operating profit¥1,361 million (YoY -5.8%)
Ordinary income¥1,391 million (YoY -4.7%)
Net income¥951 million (YoY -7.1%)
Gross Profit MarginRate 27.9% / Year on year against the same period last year 30.6% in the prior year
Operating profit marginRate 10.9% / Year on year against the same period last year 12.5% in the prior year
Selling, general and administrative expenses¥2,122 million
Results for the three months of the current quarterGraphs showing quarterly trends in gross profit, SG&A expenses, operating profit and the respective margins
Full-year earnings forecastNet Sales ¥17,200 million / Operating profit ¥2,000 million / Ordinary income ¥2,050 million / Net income for the current fiscal year ¥1,420 million
Self-assessment against the planSystems development revenue was secured to a certain extent against the plan
Segment resultsPayments Net Sales ¥10,374 million / yoy_pct 9.8 / FEP Net Sales ¥4,521 million / yoy_pct 10.5 / Fraud detection Net Sales ¥2,541 million / yoy_pct 36.2 / Acquiring Net Sales ¥1,904 million / yoy_pct -13.1 / Other (payments) Net Sales ¥1,406 million / yoy_pct 8 / Security Net Sales ¥1,470 million / yoy_pct -0.7 / Data communications and analytics platform Net Sales ¥652 million / yoy_pct 9.2
Breakdown of Factors Affecting the ChangeChange in operating profit Revenue Growth +¥300 million / Decline in gross margin -¥349 million / Increase in SG&A expenses -¥34 million / Change in SG&A expenses Personnel Expenses +¥47 million / Recruiting and training expenses +¥9 million / Equipment, maintenance and other expenses +¥14 million / Advertising expenses -¥30 million / Other -¥6 million
Key KPIsIndicator name Orders received / Value ¥10,976 million / Year on year against the same period last year ¥-32 million, Indicator name Order backlog / Value ¥18,790 million / Year on year against the same period last year ¥-11.3 million, Indicator name FEP market share / Value 73 % / Year on year against the same period last year Not disclosed, Indicator name Fraud detection market share / Value 62 % / Year on year against the same period last year Not disclosed, Indicator name Number of employees / Value 513 People / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 513 People / Record date End of December 2025
Medium-term management plan targetsTarget fiscal year Fiscal year ending June 2027 / Net Sales ¥19.0 billion / Operating profit ¥2.85 billion / ROE 17.0% or higher / Medium- to Long-Term Targets Revenue of approximately ¥30 billion and an operating margin of 18.0% or higher
Financial targetsROE Target 17.0% or higher / Actual results 14.4% for the fiscal year ended June 2025
Orders received and order backlogOrders received ¥10,976 million / Order backlog ¥18,790 million
Market Size / ShareFEP 73% (number of adopting companies among the 25 major credit card companies, as of September 2025) / Fraud detection 62% (number of adopting companies among the 25 major credit card companies, as of September 2025)
New initiativesReassessment and remediation of the development process, development structure and quality management process, Restructuring of PM development and quality training programs, Consolidation and efficiency improvements in systems operations and the infrastructure platform, Migration to a new version of FEP products and consolidation of the product lineup, Enhancement of measures against fraudulent card use, Expansion of the value provided by CWAT and diversification of the revenue model
Items this document does not state (10)
Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresKey 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.

Quality-related measures for projects involving certain customers took longer than expected. In the nine months ended March 2026, gross margin also declined due to quality-related measures for certain customers receiving cloud services and the impact of the product mix in the security business.

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 Briefing Materials for the Third Quarter of the Fiscal Year Ending June 2026 | INTELLIGENT WAVE INC. (4847) timely disclosure | Komori