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Earnings presentation5246ELEMENTS,Inc.Information and Communications, Services and Others

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

During the third quarter, revenue, operating profit and net profit improved significantly year on year, driven in part by strong performance from LIQUID eKYC, and quarterly revenue reached a record high. The full-year forecast was raised to the upper end of the ranges for revenue, operating profit and other items, to revenue of ¥5,700 million and operating profit of ¥400 million.

Worth reading
47Recurring
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
500
¥ million (year-on-year increase in quarterly revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationThird quarter of the fiscal year ending November 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,530 million+49.0%
Operating profit¥130 million
Net income¥113 million net income attributable to owners of the parent
Gross Profit Margin78.2 %
Selling, general and administrative expenses¥1,065 million
Results for the three months of the current quarter
Net Sales
¥1,530 million+49.0%
Gross profit
¥1,196 million+59.0%
Operating profit
¥130 million
EBITDA
¥341 million
Net income or loss attributable to owners of the parent
¥113 million
Full-year earnings forecast
Net Sales
¥5,700 million
Gross profit
¥4,450 million
Selling, general and administrative expenses
¥4,050 million
EBITDA
¥1,200 million
Operating profit
¥400 million
Net income or loss attributable to owners of the parent
¥300 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit
Year-on-year increase¥283 million
Selling, general and administrative expenses
ポラリファイ SG&A expenses¥176 million
Excluding Polarify¥862 million
New initiatives
  • Started development of an app dedicated to in-person KYC
  • Started offering the service at docomo Shops and docomo retailers
  • Offering a multi-factor authentication solution combining LIQUID Auth's device-change detection with Auth Face
  • Started offering AiQ PERMISSION at Cosmo Oil Sales service stations
Key KPIsA metric the company considers important as a management benchmark.
  • Cumulative number of contracted companies743 companies
  • Cumulative number of passkey authentications through LIQUID Auth15 100 million transactions
Medium-term management plan targets
Revenue growth+30%
OtherBuilding a framework that enables sustained investment and growth
Financial targets
Revenue for the fiscal year ending November 2026¥5,600–5,700 million (July 2026 revision)
Personal authentication revenue¥5,575–5,675 million (July 2026 revision)
EBITDA¥1,100–1,200 million (July 2026 revision)
Operating profit¥300–400 million (July 2026 revision)
Actual equity ratio52.1%
Market Size / Share
Domestic eKYC market shareNo. 1 for 7 consecutive years (fiscal-year results from 2019 to 2025 forecast)
Number of employees
Number of Employees105 People
Reference dateEnd of May 2026
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredThird quarter of the fiscal year ending November 2026
Net Sales¥1,530 million (YoY +49.0%)
Operating profit¥130 million
Net income¥113 million (net income attributable to owners of the parent)
Gross Profit Margin78.2 %
Selling, general and administrative expenses¥1,065 million
Results for the three months of the current quarterNet Sales ¥1,530 million (YoY +49.0%) / Gross profit ¥1,196 million (YoY +59.0%) / Operating profit ¥130 million / EBITDA ¥341 million / Net income or loss attributable to owners of the parent ¥113 million
Full-year earnings forecastNet Sales ¥5,700 million / Gross profit ¥4,450 million / Selling, general and administrative expenses ¥4,050 million / EBITDA ¥1,200 million / Operating profit ¥400 million / Net income or loss attributable to owners of the parent ¥300 million
Breakdown of Factors Affecting the ChangeNet Sales Not disclosed / Operating profit Year-on-year increase ¥283 million / Selling, general and administrative expenses ポラリファイ SG&A expenses ¥176 million / Excluding Polarify ¥862 million
Key KPIsIndicator name Cumulative number of contracted companies / Value 743 companies / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of passkey authentications through LIQUID Auth / Value 15 100 million transactions / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 105 People / Reference date End of May 2026 / Changes during the period and hiring plan Not disclosed
Medium-term management plan targetsRevenue growth +30% / Target fiscal year Not disclosed / Other Building a framework that enables sustained investment and growth
Financial targetsRevenue for the fiscal year ending November 2026 ¥5,600–5,700 million (July 2026 revision) / Personal authentication revenue ¥5,575–5,675 million (July 2026 revision) / EBITDA ¥1,100–1,200 million (July 2026 revision) / Operating profit ¥300–400 million (July 2026 revision) / Actual equity ratio 52.1%
Market Size / ShareDomestic eKYC market share No. 1 for 7 consecutive years (fiscal-year results from 2019 to 2025 forecast)
New initiativesStarted development of an app dedicated to in-person KYC, Started offering the service at docomo Shops and docomo retailers, Offering a multi-factor authentication solution combining LIQUID Auth's device-change detection with Auth Face, Started offering AiQ PERMISSION at Cosmo Oil Sales service stations
Items this document does not state (15)
Ordinary incomeOperating profit marginProgress against full-year forecastSelf-assessment against the planSegment resultsUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition 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 company cited strong performance from LIQUID eKYC, growth in the cumulative number of contracted companies and the consolidation of ポラリファイ as reasons for the increase in revenue. On the earnings side, in addition to higher revenue, it indicated an improvement in the ratio of selling, general and administrative expenses to revenue. At the same time, SG&A expenses increased due to continued reinforcement of its workforce and investment in products that could become a second earnings pillar.

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Financial Results Presentation Materials for the Third Quarter of the Fiscal Year Ending November 2026 | ELEMENTS,Inc. (5246) timely disclosure | Komori