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Presentation materials on financial results5572Ridge-i Inc.Information and Communications, Services and Others

Full-Year Earnings Presentation for the Fiscal Year Ending July 2026

For the fiscal year ended July 2026, revenue, operating profit and net income substantially exceeded the previous year due to the expansion of projects in the custom AI solutions business. The full-year forecast revised upward in June was also exceeded for both revenue and profit, while the digital marketing business recorded lower revenue and profit.

Worth reading
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
400
¥ million (year-on-year increase in consolidated net sales)
Wording
Definitive
How definitive the wording is.

Contents of this document

Presentation materials on financial resultsFull fiscal year ended July 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,993 million+15.4%
Operating profit¥547 million+93.3%
Ordinary income¥556 million
Net income¥407 million+191.9%
Gross Profit Margin
Rate55%
Year on year against the same period last year+4 points
Operating profit margin
Rate18%
Year on year against the same period last year+7 percentage points
Results for the three months of the current quarter
Net Sales
¥915 million+68.0%
Operating profit
¥145 million+726.0%
Operating profit margin16%
Net income
¥158 million
Full-year earnings forecast
Net Sales
¥3,200 million
Operating profit
¥630 million
Ordinary income
¥630 million
Net income attributable to owners of the parent
¥450 million
EBITDA
¥670 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Above plan (actual results exceeded the full-year earnings forecast revised upward in June)
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Questions Outlook for the satellite business / Answer Projects currently underway are progressing smoothly, and there have been additional inquiries. The company aims to win major development projects in the next phase by publicising its track record in national security and its technological capabilities.
  2. Questions Digital marketing business / Answer Entered into an agreement to transfer the business to the SBI Group, with the procedures completed in July 2026. It will no longer be included in the scope of consolidation from the next fiscal year. Recorded a gain on sale of ¥88 million.
  3. Questions Initiatives related to generative AI / Answer The company is steadily winning projects for customer service AI agents for SBI and AI agents for the healthcare sector, among others.
  4. Questions Dividends and share buybacks / Answer For the time being, the company will prioritise growth investments such as hiring talent and M&A, while considering flexible shareholder return measures.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Higher sales of AI utilization consulting and AI development services¥556 million
  • Lower sales of AI analysis services using satellite data¥-114 million
  • Higher sales of AI maintenance and operations services¥89 million
  • Lower sales in the digital marketing business¥-130 million
  • Gain on sale of shares in an affiliated company¥88 million
New initiatives
  • Made 創研情報株式会社 a wholly owned subsidiary and expanded its AX delivery structure and PM/FDE workforce.
  • Won the SBI Holdings company-wide AX strategy and implementation project.
  • Developed chat AI to handle customer inquiries for SBI Securities.
  • AI talent development and AI agent R&D through collaboration with Anthropic
  • The company will concentrate resources on its AI business next fiscal year and invest in hiring, outsourcing partnerships and M&A.
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥607 million
    Year on year against the same period last year1.7x
  • Number of permanent employees128 People
    Year on year against the same period last year+54 people versus the previous fiscal year-end
  • Revenue from new customers in the custom AI solutions business¥567 million
  • Revenue from existing customers in the custom AI solutions business¥1,244 million
Segment results
  • Custom AI Solutions Business
    Net Sales¥1,811 million (YoY +42.0%)
    Operating profit¥506 million (YoY +213.0%)
  • Digital Marketing Business
    Net Sales¥1,182 million (YoY -10.0%)
    Operating profit¥40 million (YoY -67.0%)
Medium-term management plan targets
Ridge-i standalone business
Target fiscal yearFiscal years ending July 2027 through July 2029
Net Sales
Fiscal year ending July 2027¥2,400 million
Fiscal year ending July 2028¥2,600 million
Fiscal year ending July 2029¥2,800 million
Operating profit
Fiscal year ending July 2027¥600 million
Fiscal year ending July 2028¥650 million
Fiscal year ending July 2029¥700 million
Operating profit margin25% in each fiscal year
Market Size / Share
  • Japan's domestic AI business market
    Figures2021: ¥1.1 trillion; 2027: ¥1.9 trillion
  • AI development services market
    Figures2021: ¥584.4 billion; 2027: ¥963.7 billion
  • Value of generative AI demand in Japan
    Figures2030: ¥1.7774 trillion
  • Earth observation market
    Figures2040: $25.273 billion
Orders received and order backlog
Won contracts worth more than ¥1 billion annually from the SBI Group. In September 2026, won the SBI Holdings company-wide AX strategy and implementation project for ¥980 million per year, and additionally won a ¥200 million contract to develop chat AI for SBI Securities.
Number of employees
Number of Employees139 on a consolidated basis (as of July 2026), including 128 full-time employees
Change during the periodFull-time employees increased by 54 from the previous fiscal year-end. Ridge-i standalone increased by 5 people net, falling short of the target of 10.
Hiring planPlans to increase full-time employees by 10 people net in the fiscal year ending July 2027
Acquisition of treasury shares
The company is considering flexible shareholder return measures, including share repurchases. The acquisition limit, number of shares and period are Not disclosed.
Contents of this document
ItemDetails
Document typePresentation materials on financial results
Fiscal Period CoveredFull fiscal year ended July 2026
Net Sales¥2,993 million (YoY +15.4%)
Operating profit¥547 million (YoY +93.3%)
Ordinary income¥556 million
Net income¥407 million (YoY +191.9%)
Gross Profit MarginRate 55% / Year on year against the same period last year +4 points
Operating profit marginRate 18% / Year on year against the same period last year +7 percentage points
Results for the three months of the current quarterNet Sales ¥915 million (YoY +68.0%) / Operating profit ¥145 million (YoY +726.0%) / Operating profit margin 16% / Net income ¥158 million
Full-year earnings forecastNet Sales ¥3,200 million / Operating profit ¥630 million / Ordinary income ¥630 million / Net income attributable to owners of the parent ¥450 million / EBITDA ¥670 million
Self-assessment against the planAbove plan (actual results exceeded the full-year earnings forecast revised upward in June)
Segment resultsSegment Custom AI Solutions Business / Net Sales ¥1,811 million (YoY +42.0%) / Operating profit ¥506 million (YoY +213.0%), Segment Digital Marketing Business / Net Sales ¥1,182 million (YoY -10.0%) / Operating profit ¥40 million (YoY -67.0%)
Breakdown of Factors Affecting the ChangeFactors Higher sales of AI utilization consulting and AI development services / Amount ¥556 million, Factors Lower sales of AI analysis services using satellite data / Amount ¥-114 million, Factors Higher sales of AI maintenance and operations services / Amount ¥89 million, Factors Lower sales in the digital marketing business / Amount ¥-130 million, Factors Gain on sale of shares in an affiliated company / Amount ¥88 million
Key KPIsIndicator name EBITDA / Value ¥607 million / Year on year against the same period last year 1.7x, Indicator name Number of permanent employees / Value 128 People / Year on year against the same period last year +54 people versus the previous fiscal year-end, Indicator name Revenue from new customers in the custom AI solutions business / Value ¥567 million / Year on year against the same period last year Not disclosed, Indicator name Revenue from existing customers in the custom AI solutions business / Value ¥1,244 million / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 139 on a consolidated basis (as of July 2026), including 128 full-time employees / Change during the period Full-time employees increased by 54 from the previous fiscal year-end. Ridge-i standalone increased by 5 people net, falling short of the target of 10. / Hiring plan Plans to increase full-time employees by 10 people net in the fiscal year ending July 2027
Medium-term management plan targetsSubject Ridge-i standalone business / Target fiscal year Fiscal years ending July 2027 through July 2029 / Net Sales Fiscal year ending July 2027 ¥2,400 million / Fiscal year ending July 2028 ¥2,600 million / Fiscal year ending July 2029 ¥2,800 million / Operating profit Fiscal year ending July 2027 ¥600 million / Fiscal year ending July 2028 ¥650 million / Fiscal year ending July 2029 ¥700 million / Operating profit margin 25% in each fiscal year
Acquisition of treasury sharesThe company is considering flexible shareholder return measures, including share repurchases. The acquisition limit, number of shares and period are Not disclosed.
Orders received and order backlogWon contracts worth more than ¥1 billion annually from the SBI Group. In September 2026, won the SBI Holdings company-wide AX strategy and implementation project for ¥980 million per year, and additionally won a ¥200 million contract to develop chat AI for SBI Securities.
Market Size / ShareMarket Japan's domestic AI business market / Figures 2021: ¥1.1 trillion; 2027: ¥1.9 trillion, Market AI development services market / Figures 2021: ¥584.4 billion; 2027: ¥963.7 billion, Market Value of generative AI demand in Japan / Figures 2030: ¥1.7774 trillion, Market Earth observation market / Figures 2040: $25.273 billion
Key points of the Q&AQuestions Outlook for the satellite business / Answer Projects currently underway are progressing smoothly, and there have been additional inquiries. The company aims to win major development projects in the next phase by publicising its track record in national security and its technological capabilities., Questions Digital marketing business / Answer Entered into an agreement to transfer the business to the SBI Group, with the procedures completed in July 2026. It will no longer be included in the scope of consolidation from the next fiscal year. Recorded a gain on sale of ¥88 million., Questions Initiatives related to generative AI / Answer The company is steadily winning projects for customer service AI agents for SBI and AI agents for the healthcare sector, among others., Questions Dividends and share buybacks / Answer For the time being, the company will prioritise growth investments such as hiring talent and M&A, while considering flexible shareholder return measures.
New initiativesMade 創研情報株式会社 a wholly owned subsidiary and expanded its AX delivery structure and PM/FDE workforce., Won the SBI Holdings company-wide AX strategy and implementation project., Developed chat AI to handle customer inquiries for SBI Securities., AI talent development and AI agent R&D through collaboration with Anthropic, The company will concentrate resources on its AI business next fiscal year and invest in hiring, outsourcing partnerships and M&A.
Items this document does not state (10)
Selling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioCapital expenditures

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 custom AI solutions business recorded higher revenue and profit due to an increase in generative AI projects, additional orders from existing customers and large-scale projects from the SBI Group. The digital marketing business recorded lower revenue and profit due to decreased sales from platform operators and a delay in the recovery of orders.

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Full-Year Earnings Presentation for the Fiscal Year Ending July 2026 | Ridge-i Inc. (5572) timely disclosure | Komori