Worth reading
34Immaterial
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
157
Growth rate from the beginning of the fiscal year (%)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&ASecond quarter of the fiscal year ending August 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Gross Profit MarginImproved by approximately 10% year on year (GPU server business)
Selling, general and administrative expensesNot disclosed. Expected to increase from the third quarter onward due to the arrival of 39 new graduate hires
Results for the three months of the current quarterOperating loss of ¥52 million in the GPU server business. An impairment loss of approximately ¥23 million on crypto-assets was recorded in the second quarter
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。The figure was not disclosed. The company explained that progress in the second quarter was strong relative to the full-year plan
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue and operating profit in the AI solutions business were performing better than expected. The budget calls for second-half profit to be below first-half profitKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Contribution to improved gross margins for AI products: demand for attendance management, renewable energy-related applications, and customized development contributed
- Proprietary product KPIs: the number of deployments grew to approximately 157% of the level at the beginning of the fiscal year, while MRR grew by approximately 112%. However, the company recognizes that MRR growth was insufficient
- Progress against the full-year plan: the main reason for the second quarter's profit level was that revenue and operating profit in the AI solutions business were performing better than expected
- GPU server business: shift from mining machines to GPU servers for AI development, an operating loss of ¥52 million, and an impairment loss of approximately ¥23 million
- Image recognition platform: specialization in rigorous identity verification, expansion of APIs and SDKs, and integration with other systems
- Response to the share price decline: improved profitability, new domains, new products, strategic M&A, and strengthened IR
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue and operating profit in the AI solutions business were performing better than expected. The GPU server business was affected by the downturn in the crypto-asset market and the recognition of an impairment loss of approximately ¥23 million on crypto-assets. The bridge amounts by factor were not disclosed
New initiatives
- Shift to selling GPU servers for AI development applications
- Specialization in rigorous identity verification
- Expansion of APIs and SDKs and integration with external systems
- Launch of new products for new domains, including manufacturing
- Consideration of strategic M&A
Key KPIsA metric the company considers important as a management benchmark.
- Number of deployments (alcohol detection × facial recognition service)Approximately 157% of the level at the beginning of the fiscal year
- MRR (alcohol detection × facial recognition service)Approximately 112% of the level at the beginning of the fiscal year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The company disclosed a billing model based on the number of IDs, the number of deployments, and MRR, but did not disclose the relationship between unit pricing and volumeSegment results
GPU server business: operating loss of ¥52 million, with gross margin improving by approximately 10% year on year. Figures for other segments were not disclosedNumber of employees
39 new graduate hires will join the company in April 2026| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending August 2026 |
| Gross Profit Margin | Improved by approximately 10% year on year (GPU server business) |
| Selling, general and administrative expenses | Not disclosed. Expected to increase from the third quarter onward due to the arrival of 39 new graduate hires |
| Results for the three months of the current quarter | Operating loss of ¥52 million in the GPU server business. An impairment loss of approximately ¥23 million on crypto-assets was recorded in the second quarter |
| Progress against full-year forecast | The figure was not disclosed. The company explained that progress in the second quarter was strong relative to the full-year plan |
| Self-assessment against the plan | Revenue and operating profit in the AI solutions business were performing better than expected. The budget calls for second-half profit to be below first-half profit |
| Segment results | GPU server business: operating loss of ¥52 million, with gross margin improving by approximately 10% year on year. Figures for other segments were not disclosed |
| Breakdown of Factors Affecting the Change | Revenue and operating profit in the AI solutions business were performing better than expected. The GPU server business was affected by the downturn in the crypto-asset market and the recognition of an impairment loss of approximately ¥23 million on crypto-assets. The bridge amounts by factor were not disclosed |
| Key KPIs | Indicator Number of deployments (alcohol detection × facial recognition service) / Value Approximately 157% of the level at the beginning of the fiscal year, Indicator MRR (alcohol detection × facial recognition service) / Value Approximately 112% of the level at the beginning of the fiscal year |
| Unit price and quantity metrics | The company disclosed a billing model based on the number of IDs, the number of deployments, and MRR, but did not disclose the relationship between unit pricing and volume |
| Number of employees | 39 new graduate hires will join the company in April 2026 |
| Key points of the Q&A | Contribution to improved gross margins for AI products: demand for attendance management, renewable energy-related applications, and customized development contributed, Proprietary product KPIs: the number of deployments grew to approximately 157% of the level at the beginning of the fiscal year, while MRR grew by approximately 112%. However, the company recognizes that MRR growth was insufficient, Progress against the full-year plan: the main reason for the second quarter's profit level was that revenue and operating profit in the AI solutions business were performing better than expected, GPU server business: shift from mining machines to GPU servers for AI development, an operating loss of ¥52 million, and an impairment loss of approximately ¥23 million, Image recognition platform: specialization in rigorous identity verification, expansion of APIs and SDKs, and integration with other systems, Response to the share price decline: improved profitability, new domains, new products, strategic M&A, and strengthened IR |
| New initiatives | Shift to selling GPU servers for AI development applications, Specialization in rigorous identity verification, Expansion of APIs and SDKs and integration with external systems, Launch of new products for new domains, including manufacturing, Consideration of strategic M&A |
Items this document does not state (17)
Net SalesOperating profitOrdinary incomeNet incomeOperating profit marginFull-year earnings forecastNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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 AI products benefited from demand for attendance management following amendments to the Labor Standards Act, integration with major attendance management platform services, security demand related to renewable energy, and the expansion of customized development using facial recognition APIs and SDKs. The GPU server business was affected by the downturn in the crypto-asset market, while the company is pursuing a shift from selling mining machines to selling GPU servers for AI development applications.
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.