Worth reading
65In 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
1806
¥ million (amount of operating loss improvement in the fiscal year ending August 2027)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Presentation materials on financial resultsFull year ended August 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,122 million-21.6%
Operating profit¥-2,316 million
Ordinary income¥-2,310 million
Net income¥-2,302 million
Selling, general and administrative expenses¥2,286 million
Gross Profit Margin
Actual results for the fiscal year ended August 2026Equivalent to -0.9% (gross profit: down ¥29 million; revenue: ¥3,122 million)
Forecast for the fiscal year ending August 202722.9%
Operating profit margin
Actual results for the fiscal year ended August 2026Equivalent to -74.2%
Results for the three months of the current quarter
Net Sales
¥765 million
Operating loss
¥-438 million
NotesFourth quarter of the fiscal year ended August 2026
Full-year earnings forecast
Fiscal year ending August 2027
Net Sales
¥3,381 million
Cost of sales
¥2,606 million
Gross profit
¥774 million
Selling, general and administrative expenses
¥1,285 million
Operating loss
¥-510 million
Ordinary loss
¥-505 million
Net loss attributable to owners of the parent
¥-542 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Results for the fiscal year ended August 2026 fell significantly short of plan. The fiscal year ended at almost the same level as the revised forecast.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Meaning of the going-concern note and measures to address it
- Ability to secure funding
- Reasons Sovereign GaiXer fell short of plan
- Reasons for the increase in cancellations of cloud-based GaiXer and measures to address it
- Inventory of equipment for Sovereign GaiXer
- Reasons for acquiring and cancelling the stock acquisition rights and capital policy
- Basis for the forecast for the fiscal year ending August 2027
- Timing of profitability
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Sovereign GaiXer-¥845 million
Medical AI (JV and Medical Division)-¥414 million
BID Division-¥136 million
Business Planning Division-¥4 million
Service Delivery Division+¥172 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Revenue for the fiscal year ending August 2027Evaluate contracts, orders, quotation submission status and past performance
Monthly PlanEvaluate order probability and delivery and acceptance timing for each project
Average Monthly Cost of Sales and SG&A Expenses¥324 million/month
March monthly operating income (loss)Expect to be operating-profit positive
New initiatives
- Joint development with TOKYO MX of the AI review system GaiXer Review Agent
- Standard inclusion in Sovereign GaiXer of a redaction app jointly developed with Iga City
- Expansion of Sovereign GaiXer to include an AI OS and the GaiXer App Store
- Consolidation of the sales and business development organization into a 19-person structure in September
Key KPIsA metric the company considers important as a management benchmark.
- Number of companies with cloud-based GaiXer contracts80 companiesYear on year against the same period last yearDown from 107 companies
- Number of institutions using and implementing AI Medical Affairs Manager10 Organization
- Revenue contribution of the top 10 companies87 %
- Sovereign GaiXer revenue for the current period¥31 million
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sovereign GaiXer
GaiXer Division Annual Plan¥486 million
List price¥3,806,400 million
List Price UnitJPY/vehicle
Average Monthly Equivalent Units¥11 million
Segment results
Sovereign GaiXer
Plan¥951 million
Actual results¥31 million
GaiXer Division
Plan¥862 million
Actual results¥16 million
Medical AI (JV and Medical Division)
Plan¥610 million
Actual results¥195 million
BID Division
Impact¥-136 million
Business Planning Division
Impact¥-4 million
Service Delivery Division
Impact¥172 million
Financial targets
Actual equity ratio78.1 %
Number of stores and locations
Openings and closures during the periodConsolidation of the Yokkaichi and Nagoya locations, and a phased reduction in the leased area of the Tokyo headquarters
Number of employees
Headcount at fiscal year-end288 People
Change during the periodDown 69 from 357 at the end of August 2025, and down 34 from 322 at the end of the third quarter of fiscal 2026
Hiring plan15 new graduates hired, with mid-career hiring also reduced
Capital expenditures
¥39 million acquisition of property, plant and equipment, fiscal year ended August 2026
Acquisition of treasury shares
Acquired and cancelled 27,620 stock acquisition rights (2,762,000 potential shares) on 30 September 2026| Item | Details |
|---|---|
| Document type | Presentation materials on financial results |
| Fiscal Period Covered | Full year ended August 2026 |
| Net Sales | ¥3,122 million (YoY -21.6%) |
| Operating profit | ¥-2,316 million |
| Ordinary income | ¥-2,310 million |
| Net income | ¥-2,302 million |
| Gross Profit Margin | Actual results for the fiscal year ended August 2026 Equivalent to -0.9% (gross profit: down ¥29 million; revenue: ¥3,122 million) / Forecast for the fiscal year ending August 2027 22.9% / Year-on-year change (points) Not disclosed |
| Operating profit margin | Actual results for the fiscal year ended August 2026 Equivalent to -74.2% / Year-on-year change (points) Not disclosed |
| Selling, general and administrative expenses | ¥2,286 million |
| Results for the three months of the current quarter | Net Sales ¥765 million / Operating loss ¥-438 million / Notes Fourth quarter of the fiscal year ended August 2026 |
| Full-year earnings forecast | Subject Fiscal year ending August 2027 / Net Sales ¥3,381 million / Cost of sales ¥2,606 million / Gross profit ¥774 million / Selling, general and administrative expenses ¥1,285 million / Operating loss ¥-510 million / Ordinary loss ¥-505 million / Net loss attributable to owners of the parent ¥-542 million |
| Self-assessment against the plan | Results for the fiscal year ended August 2026 fell significantly short of plan. The fiscal year ended at almost the same level as the revised forecast. |
| Segment results | Sovereign GaiXer Plan ¥951 million / Actual results ¥31 million / GaiXer Division Plan ¥862 million / Actual results ¥16 million / Medical AI (JV and Medical Division) Plan ¥610 million / Actual results ¥195 million / BID Division Impact ¥-136 million / Business Planning Division Impact ¥-4 million / Service Delivery Division Impact ¥172 million |
| Breakdown of Factors Affecting the Change | Sovereign GaiXer -¥845 million / Medical AI (JV and Medical Division) -¥414 million / BID Division -¥136 million / Business Planning Division -¥4 million / Service Delivery Division +¥172 million |
| Key KPIs | Indicator Number of companies with cloud-based GaiXer contracts / Value 80 companies / Year on year against the same period last year Down from 107 companies, Indicator Number of institutions using and implementing AI Medical Affairs Manager / Value 10 Organization / Year on year against the same period last year Not disclosed, Indicator Revenue contribution of the top 10 companies / Value 87 % / Year on year against the same period last year Not disclosed, Indicator Sovereign GaiXer revenue for the current period / Value ¥31 million / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Sovereign GaiXer GaiXer Division Annual Plan ¥486 million / List price ¥3,806,400 million / List Price Unit JPY/vehicle / Average Monthly Equivalent Units ¥11 million |
| Number of stores and locations | Number of locations at period end Not disclosed / Openings and closures during the period Consolidation of the Yokkaichi and Nagoya locations, and a phased reduction in the leased area of the Tokyo headquarters |
| Number of employees | Headcount at fiscal year-end 288 People / Change during the period Down 69 from 357 at the end of August 2025, and down 34 from 322 at the end of the third quarter of fiscal 2026 / Hiring plan 15 new graduates hired, with mid-career hiring also reduced |
| Assumptions Underlying the Business Outlook | Revenue for the fiscal year ending August 2027 Evaluate contracts, orders, quotation submission status and past performance / Monthly Plan Evaluate order probability and delivery and acceptance timing for each project / Average Monthly Cost of Sales and SG&A Expenses ¥324 million/month / March monthly operating income (loss) Expect to be operating-profit positive |
| Financial targets | Actual equity ratio 78.1 % / Target Not disclosed |
| Acquisition of treasury shares | Acquired and cancelled 27,620 stock acquisition rights (2,762,000 potential shares) on 30 September 2026 |
| Capital expenditures | ¥39 million (acquisition of property, plant and equipment, fiscal year ended August 2026) |
| Key points of the Q&A | Meaning of the going-concern note and measures to address it, Ability to secure funding, Reasons Sovereign GaiXer fell short of plan, Reasons for the increase in cancellations of cloud-based GaiXer and measures to address it, Inventory of equipment for Sovereign GaiXer, Reasons for acquiring and cancelling the stock acquisition rights and capital policy, Basis for the forecast for the fiscal year ending August 2027, Timing of profitability |
| New initiatives | Joint development with TOKYO MX of the AI review system GaiXer Review Agent, Standard inclusion in Sovereign GaiXer of a redaction app jointly developed with Iga City, Expansion of Sovereign GaiXer to include an AI OS and the GaiXer App Store, Consolidation of the sales and business development organization into a 19-person structure in September |
Items this document does not state (7)
Progress against full-year forecastRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioOrders 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 shortfall in the fiscal year ended August 2026 was attributable to delays in building the agency channel and direct-sales structure for Sovereign GaiXer, delays in obtaining approval for medical AI projects, and the loss of a large public-sector project. The company attributed the wider loss to delays in reducing fixed costs, including personnel and cloud costs, in response to the decline in revenue. For the fiscal year ending August 2027, the company plans to review its personnel structure, outsourced services, locations and other expenses.
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