Komori
Financial results presentation5591AVILEN Inc.Information and Communications, Services and Others

Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026

Revenue increased 8.2% year on year in Q1, while operating profit declined 44.5%. Projects for major customers and new partnerships progressed, but higher costs associated with the increasing scale and complexity of projects, investment in personnel, and a change in the accounting treatment for bonus provisions weighed on profit.

Worth reading
51Recurring
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
44.5
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥442 million+8.2%
Operating profit¥66 million-44.5%
Operating profit margin15 %
Results for the three months of the current quarter
Net Sales
¥442 million
Gross profit
¥287 million
Operating profit
¥66 million
EBITDA
¥82 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 Sales
20.7 %
Operating profit
18.7 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
A solid start
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Higher costs from the use of development partners due to the increasing sophistication and complexity of development projects
  • Accounting change in the provisioning treatment for regular bonusesApproximately ¥20 million
  • Timing shifts in order intake
New initiatives
  • Establishment of BA Intelligence, a joint venture with ベルシステム24
  • Launch of the AI Agent series
  • Development of AI agent use cases and preparation for external sales with 大塚商会
  • Development and expanded sales of packaged software, including AI agents
  • Collaboration with AI ventures and systems integrators through M&A and business alliances
Key KPIsA metric the company considers important as a management benchmark.
  • Number of companies with LTV of ¥30 million or more36 companies
    Year on year against the same period last year+89%
  • Number of companies with LTV of ¥10 million or more104 companies
    Year on year against the same period last year+40%
  • Number of people affiliated with DS-Hub300 approximately people
  • Number of AI projects deployed in real-world settings53 Engagements
  • Cumulative number of people reskilled in AI/DX70,000 approximately people
Segment results
AI Software
Net Sales
¥302 million+6.7%
Build-up
Net Sales
¥140 million+11.7%
Medium-term management plan targets
Target fiscal yearFY2028 December
Net Sales
¥4,000 million
Operating profit
¥880 million
Market Size / Share
  • AI business market$2,437 100 million
    Fiscal year2025
  • Generative AI business market$627 100 million
    Fiscal year2025
  • AI business market$8,267 100 million
    Fiscal year2030
  • Generative AI business market$3,561 100 million
    Fiscal year2030
  • Non-IT BPO market¥1.9 trillion
    Fiscal year2026
  • AI systems market¥4.1 trillion
    Fiscal year2029
Orders received and order backlog
Build-up order intake
Year on year against the same period last yearApproximately 1.4x
Number of employees
Hires during the period4 people
DetailsHired consultants and engineers during Q1
Gross profit
¥287 million-3.3%
Rate
65 %
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥442 million (YoY +8.2%)
Operating profit¥66 million (YoY -44.5%)
Gross profit¥287 million (YoY -3.3%)
Operating profit margin15 %
Results for the three months of the current quarterNet Sales ¥442 million / Gross profit ¥287 million / Operating profit ¥66 million / EBITDA ¥82 million
Progress against full-year forecastNet Sales 20.7 % / Operating profit 18.7 %
Self-assessment against the planA solid start
Segment resultsAI Software Net Sales ¥302 million (YoY +6.7%) / Profit Not disclosed / Build-up Net Sales ¥140 million (YoY +11.7%) / Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Higher costs from the use of development partners due to the increasing sophistication and complexity of development projects / Amount Not disclosed, Factors Accounting change in the provisioning treatment for regular bonuses / Amount Approximately ¥20 million, Factors Timing shifts in order intake / Amount Not disclosed
Key KPIsIndicator name Number of companies with LTV of ¥30 million or more / Value 36 companies / Year on year against the same period last year +89%, Indicator name Number of companies with LTV of ¥10 million or more / Value 104 companies / Year on year against the same period last year +40%, Indicator name Number of people affiliated with DS-Hub / Value 300 approximately people / Year on year against the same period last year Not disclosed, Indicator name Number of AI projects deployed in real-world settings / Value 53 Engagements / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of people reskilled in AI/DX / Value 70,000 approximately people / Year on year against the same period last year Not disclosed
Number of employeesHires during the period 4 people / Details Hired consultants and engineers during Q1
Medium-term management plan targetsTarget fiscal year FY2028 December / Net Sales ¥4,000 million / Operating profit ¥880 million
Orders received and order backlogBuild-up order intake Year on year against the same period last year Approximately 1.4x
Market Size / ShareAI business market $2,437 100 million, Generative AI business market $627 100 million, AI business market $8,267 100 million, Generative AI business market $3,561 100 million, Non-IT BPO market ¥1.9 trillion, AI systems market ¥4.1 trillion
New initiativesEstablishment of BA Intelligence, a joint venture with ベルシステム24, Launch of the AI Agent series, Development of AI agent use cases and preparation for external sales with 大塚商会, Development and expanded sales of packaged software, including AI agents, Collaboration with AI ventures and systems integrators through M&A and business alliances
Items this document does not state (14)
Ordinary incomeNet incomeSelling, general and administrative expensesFull-year earnings forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual 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.

In addition to the modest 8.2% revenue growth rate, the increasing sophistication and complexity of AI software development projects led to greater use of development partners, increasing the cost burden. The change in the provisioning treatment for regular bonuses from Q1 of the current fiscal year also had an impact of approximately ¥20 million.

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.
Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026 | AVILEN Inc. (5591) timely disclosure | Komori