Worth reading
73In 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
4167.1
Year-on-year increase in operating profit (%)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFirst quarter of the fiscal year ending November 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,218 million+27.3%
Operating profit¥235 million+4,167.1%
Ordinary income¥231 million+3,728.5%
Net income¥291 million+5,760.6%
Gross Profit MarginOver 90%; year-on-year change: Not disclosed
Results for the three months of the current quarterRevenue: ¥1,218 million; adjusted EBITDA: ¥255 million; operating income: ¥235 million; ordinary income: ¥231 million; net income attributable to owners of the parent: ¥291 million
Full-year earnings forecast
Net Sales
¥5,600 million
Gross profit
¥4,800 million
Adjusted EBITDA
¥810 million
Operating profit
¥700 million
Ordinary income
¥700 million
Profit attributable to owners of the parent
¥850 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 Sales21.8%
Gross profit23.7%
Adjusted EBITDA31.6%
Operating profit33.6%
Ordinary income33.1%
Profit attributable to owners of the parent34.3%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress is on track. Adjusted EBITDA had already reached over 30% of the full-year plan in Q1.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue growth, productivity gains through AI, controls on personnel and other expenses, and expected increases in personnel expenses as hiring progresses
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The AI-related business is expected to recognize approximately ¥500 million in revenue from a GENIAC-selected demonstration project. Numerical assumptions for other factors, including foreign exchange rates, raw material prices and interest rates: Not disclosedNew initiatives
- Capital and business alliance with KADOKAWA and a third-party allotment of shares
- Launch of the AI Context Network
- Comprehensive renewal of the generative-AI-powered recommendation engine
- Release of a comics viewer
- Collaboration with the Chiba Prefectural Board of Education and Kyoto City
- Automated multilingual support
- Strategic partnership with SUNNY SIDE UP
- Promotion of the GENIAC Project
- LINE Manga × TALES joint contest
Key KPIsA metric the company considers important as a management benchmark.
- Quarterly GMV¥6,203 millionYear on year against the same period last year+25.0%
- Subscription share of GMV27.9 %
- note pro ARR¥780 millionYear on year against the same period last year+33.0%
- note pro ARPPUIn the ¥65,000 range
- Revenue per employee¥26.7 millionYear on year against the same period last year+23.4%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The presentation includes subscriber numbers, ARPPU, the number of paid note pro contracts, note pro ARPPU, registered members, published content and cumulative unique creators. Subscriber numbers increased, while ARPPU remained stable at around ¥2,700. Paid contracts increased by 177 year on year, and ARPPU was in the ¥65,000 range.Segment results
Revenue by segment, including note, note pro, the AI-related business and the IP-related business, is presented graphically. Segment profit figures: Not disclosedMedium-term management plan targets
Consolidated revenue of ¥10 billion and an EBITDA margin of 30%–40% around 2028–2030Financial targets
Consolidated revenue of ¥10 billion and an EBITDA margin of 30%–40% around 2028–2030. The equity ratio was 60.5% at the end of February 2026.Market Size / Share
The global content industry market size and the value of exports from Japan's content industry are presented graphically. Specific figures: Not disclosed. note ranked 13th in website access rankings in Japan, and expected traffic from AI is four times that of other websites.Orders received and order backlog
Approximately ¥500 million in revenue is expected to be recognized from orders for the GENIAC demonstration project. Order intake and order backlog: Not disclosedNumber of employees
The consolidated headcount trend is presented graphically. Headcount temporarily declined at the end of Q1, and increases in headcount and personnel expenses are expected from Q2 onward as hiring progresses. Specific headcount: Not disclosed| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending November 2026 |
| Net Sales | ¥1,218 million (YoY +27.3%) |
| Operating profit | ¥235 million (YoY +4,167.1%) |
| Ordinary income | ¥231 million (YoY +3,728.5%) |
| Net income | ¥291 million (YoY +5,760.6%) |
| Gross Profit Margin | Over 90%; year-on-year change: Not disclosed |
| Results for the three months of the current quarter | Revenue: ¥1,218 million; adjusted EBITDA: ¥255 million; operating income: ¥235 million; ordinary income: ¥231 million; net income attributable to owners of the parent: ¥291 million |
| Full-year earnings forecast | Net Sales ¥5,600 million / Gross profit ¥4,800 million / Adjusted EBITDA ¥810 million / Operating profit ¥700 million / Ordinary income ¥700 million / Profit attributable to owners of the parent ¥850 million |
| Progress against full-year forecast | Net Sales 21.8% / Gross profit 23.7% / Adjusted EBITDA 31.6% / Operating profit 33.6% / Ordinary income 33.1% / Profit attributable to owners of the parent 34.3% |
| Self-assessment against the plan | Progress is on track. Adjusted EBITDA had already reached over 30% of the full-year plan in Q1. |
| Segment results | Revenue by segment, including note, note pro, the AI-related business and the IP-related business, is presented graphically. Segment profit figures: Not disclosed |
| Breakdown of Factors Affecting the Change | Revenue growth, productivity gains through AI, controls on personnel and other expenses, and expected increases in personnel expenses as hiring progresses |
| Key KPIs | Indicator name Quarterly GMV / Value ¥6,203 million / Year on year against the same period last year +25.0%, Indicator name Subscription share of GMV / Value 27.9 % / Year on year against the same period last year Not disclosed, Indicator name note pro ARR / Value ¥780 million / Year on year against the same period last year +33.0%, Indicator name note pro ARPPU / Value In the ¥65,000 range / Year on year against the same period last year Not disclosed, Indicator name Revenue per employee / Value ¥26.7 million / Year on year against the same period last year +23.4% |
| Unit price and quantity metrics | The presentation includes subscriber numbers, ARPPU, the number of paid note pro contracts, note pro ARPPU, registered members, published content and cumulative unique creators. Subscriber numbers increased, while ARPPU remained stable at around ¥2,700. Paid contracts increased by 177 year on year, and ARPPU was in the ¥65,000 range. |
| Number of employees | The consolidated headcount trend is presented graphically. Headcount temporarily declined at the end of Q1, and increases in headcount and personnel expenses are expected from Q2 onward as hiring progresses. Specific headcount: Not disclosed |
| Assumptions Underlying the Business Outlook | The AI-related business is expected to recognize approximately ¥500 million in revenue from a GENIAC-selected demonstration project. Numerical assumptions for other factors, including foreign exchange rates, raw material prices and interest rates: Not disclosed |
| Medium-term management plan targets | Consolidated revenue of ¥10 billion and an EBITDA margin of 30%–40% around 2028–2030 |
| Financial targets | Consolidated revenue of ¥10 billion and an EBITDA margin of 30%–40% around 2028–2030. The equity ratio was 60.5% at the end of February 2026. |
| Orders received and order backlog | Approximately ¥500 million in revenue is expected to be recognized from orders for the GENIAC demonstration project. Order intake and order backlog: Not disclosed |
| Market Size / Share | The global content industry market size and the value of exports from Japan's content industry are presented graphically. Specific figures: Not disclosed. note ranked 13th in website access rankings in Japan, and expected traffic from AI is four times that of other websites. |
| New initiatives | Capital and business alliance with KADOKAWA and a third-party allotment of shares, Launch of the AI Context Network, Comprehensive renewal of the generative-AI-powered recommendation engine, Release of a comics viewer, Collaboration with the Chiba Prefectural Board of Education and Kyoto City, Automated multilingual support, Strategic partnership with SUNNY SIDE UP, Promotion of the GENIAC Project, LINE Manga × TALES joint contest |
Items this document does not state (9)
Operating profit marginSelling, general and administrative expensesNumber of stores and locationsRisk 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.Revenue growth from increased note GMV, productivity gains through the use of AI, and controls on expenses such as personnel costs contributed to the increase in profit. The full-year forecast remains unchanged because hiring and personnel expenses are expected to increase alongside future growth investments.
How to read this page
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