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Presentation materials for financial results5885GDEP ADVANCE,Inc.Trading & Wholesale

Supplementary Explanatory Materials on the Financial Results for the Fiscal Year Ended May 2026 and Medium-Term Management Plan

For the fiscal year ended May 2026, revenue was ¥6,949 million and operating income was ¥1,117 million, both record highs. For the fiscal year ending May 2027, revenue is projected at ¥8,840 million and operating income at ¥1,268 million, and the target for the final year of the medium-term management plan has been revised upward.

Worth reading
84Important
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
277
¥ million (year-on-year increase in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending May 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,949 million+4.8%
Operating profit¥1,117 million+33.0%
Ordinary income¥1,170 million+47.1%
Net income¥786 million+46.5%
Selling, general and administrative expenses¥618 million
Gross Profit Margin
Rate25.0%
Year-on-year change (points)+4.8 percentage points
Operating profit margin
Rate16.1%
Year-on-year change (points)+3.4 percentage points
Results for the three months of the current quarter
Net Sales
1Q948
2Q2,134
3Q1,575
4Q2,289
Operating profit
1Q166
2Q446
3Q197
4Q306
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending May 2027
Net Sales
¥8,840 million
Operating profit
¥1,268 million
Ordinary income
¥1,268 million
Net income
¥829 million
DX Services
¥8,096 million
Service＆Support
¥743 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。
Revenue for the fiscal year ended May 202695.1% (versus initial forecast)
Operating income for the fiscal year ended May 2026119.6% (versus initial forecast)
Ordinary income for the fiscal year ended May 2026125.3% (versus initial forecast)
Net income for the fiscal year ended May 2026125.4% (versus initial forecast)
Revenue for the fiscal year ending May 202715.8% (Q1), 39.7% (cumulative Q2), 78.6% (cumulative Q3), 100.0% (full-year forecast)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing ahead of the initial plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profit
Operating income for the fiscal year ended May 2025839
Revenue increase68
Gross Margin390
Increase in labor costs-17
Expenses-43
Personnel Expenses-52
Advertising expenses-6
Depreciation and amortization-23
Outsourcing expenses-4
Rent0
Other-32
Operating income for the fiscal year ended May 20261,117
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Increase in large projects
  • Execution of upselling
  • A large project is scheduled to be recorded in Q3 of the fiscal year ending May 2027
  • Year-end demand
New initiatives
  • Obtain NVIDIA AI Factory Specialization certification
  • Launch an AI Factory team comprising dedicated engineers and solution architects
  • Strengthen collaboration with storage vendors
  • Jointly develop ROBODEV, a PoC solution for physical AI, with マクニカ社
  • Roll out the company's own GPU cloud, GX-CLOUD
  • Appoint a dedicated IR officer
  • Introduce English-language disclosure
  • Disclose revenue forecasts and repeat rates on a quarterly basis
Key KPIsA metric the company considers important as a management benchmark.
  • Repeat rate of flow revenue89.8 %
    Year on year against the same period last year+7.0 percentage points
  • Four-consecutive-period transaction rate55.3 %
    Year on year against the same period last year+0.6 percentage points
  • Number of employees34 People
    Year on year against the same period last year+3 people
  • Equity ratio60.9 %
    Year on year against the same period last year-0.9 percentage points
  • Order backlog¥2,230 million
    Year on year against the same period last year+71.9%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The company explains the gradual increase in average customer spending, but quantitative figures such as customer numbers and average customer spending are not disclosed
Segment results
Single segmentSystem Incubation business
DX Services
Revenue for the fiscal year ended May 2026¥6,365 million
Year on year against the same period last year+3.4%
Sales mix91.6%
Service＆Support
Revenue for the fiscal year ended May 2026¥583 million
Year on year against the same period last year+22.4%
Sales mix8.4%
Medium-term management plan targets
Initial plan for the fiscal year ending May 2027
Net Sales¥8,415 million
Operating profit¥1,055 million
Revised upward forecast for the fiscal year ending May 2027
Net Sales¥8,840 million
Operating profit¥1,268 million
Post-medium-term planTargeting revenue of more than ¥10 billion
Market Size / Share
  • Domestic AI market¥2.778 trillion
    Fiscal year2028
  • Generative AI market¥1.7397 trillion
    Fiscal year2028
  • GPU Server Market¥260.0 billion
    Fiscal yearFY2028
  • GPU cloud market¥240.3 billion
    Fiscal yearFY2028
  • AI-related budget for fiscal 2026¥502.7 billion
    Fiscal yearFiscal 2026
Orders received and order backlog
Order backlog
Fiscal year ending May 2025¥1,297 million
Fiscal year ending May 2026¥2,230 million
Year on year against the same period last year+71.9%
Number of employees
Headcount at fiscal year-end34 People
Change during the period+3 people
Hiring planHire a human resources specialist and strengthen recruitment across all job categories
Annual Dividend
Fiscal year ending May 2026
Annual¥44 per share
Initial plan¥29 per share
Forecast for the fiscal year ending May 2027
Annual¥48 per share
Payout ratio
Fiscal year ending May 202630.4 %
Forecast for the fiscal year ending May 202731.8 %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending May 2026
Net Sales¥6,949 million (YoY +4.8%)
Operating profit¥1,117 million (YoY +33.0%)
Ordinary income¥1,170 million (YoY +47.1%)
Net income¥786 million (YoY +46.5%)
Gross Profit MarginRate 25.0% / Year-on-year change (points) +4.8 percentage points
Operating profit marginRate 16.1% / Year-on-year change (points) +3.4 percentage points
Selling, general and administrative expenses¥618 million
Results for the three months of the current quarterNet Sales 1Q 948 / 2Q 2,134 / 3Q 1,575 / 4Q 2,289 / Operating profit 1Q 166 / 2Q 446 / 3Q 197 / 4Q 306
Full-year earnings forecastFiscal Period Covered Fiscal year ending May 2027 / Net Sales ¥8,840 million / Operating profit ¥1,268 million / Ordinary income ¥1,268 million / Net income ¥829 million / DX Services ¥8,096 million / Service＆Support ¥743 million
Progress against full-year forecastRevenue for the fiscal year ended May 2026 95.1% (versus initial forecast) / Operating income for the fiscal year ended May 2026 119.6% (versus initial forecast) / Ordinary income for the fiscal year ended May 2026 125.3% (versus initial forecast) / Net income for the fiscal year ended May 2026 125.4% (versus initial forecast) / Revenue for the fiscal year ending May 2027 15.8% (Q1), 39.7% (cumulative Q2), 78.6% (cumulative Q3), 100.0% (full-year forecast)
Self-assessment against the planProgressing ahead of the initial plan
Segment resultsSingle segment System Incubation business / DX Services Revenue for the fiscal year ended May 2026 ¥6,365 million / yoy_pct ¥3.4 million / Sales mix 91.6% / Service＆Support Revenue for the fiscal year ended May 2026 ¥583 million / yoy_pct ¥22.4 million / Sales mix 8.4%
Breakdown of Factors Affecting the ChangeChange in operating profit Operating income for the fiscal year ended May 2025 839 / Revenue increase 68 / Gross Margin 390 / Increase in labor costs -17 / Expenses -43 / Personnel Expenses -52 / Advertising expenses -6 / Depreciation and amortization -23 / Outsourcing expenses -4 / Rent 0 / Other -32 / Operating income for the fiscal year ended May 2026 1,117
Key KPIsIndicator name Repeat rate of flow revenue / Value 89.8 % / Year on year against the same period last year +7.0 percentage points, Indicator name Four-consecutive-period transaction rate / Value 55.3 % / Year on year against the same period last year +0.6 percentage points, Indicator name Number of employees / Value 34 People / Year on year against the same period last year +3 people, Indicator name Equity ratio / Value 60.9 % / Year on year against the same period last year -0.9 percentage points, Indicator name Order backlog / Value ¥2,230 million / Year on year against the same period last year +71.9%
Unit price and quantity metricsThe company explains the gradual increase in average customer spending, but quantitative figures such as customer numbers and average customer spending are not disclosed
Number of employeesHeadcount at fiscal year-end 34 People / Change during the period +3 people / Hiring plan Hire a human resources specialist and strengthen recruitment across all job categories
Assumptions Underlying the Business OutlookIncrease in large projects, Execution of upselling, A large project is scheduled to be recorded in Q3 of the fiscal year ending May 2027, Year-end demand
Medium-term management plan targetsInitial plan for the fiscal year ending May 2027 Net Sales ¥8,415 million / Operating profit ¥1,055 million / Revised upward forecast for the fiscal year ending May 2027 Net Sales ¥8,840 million / Operating profit ¥1,268 million / Post-medium-term plan Targeting revenue of more than ¥10 billion
Annual DividendFiscal year ending May 2026 Annual ¥44 per share / Initial plan ¥29 per share / Forecast for the fiscal year ending May 2027 Annual ¥48 per share
Payout ratioFiscal year ending May 2026 30.4 % / Forecast for the fiscal year ending May 2027 31.8 %
Orders received and order backlogOrder backlog Fiscal year ending May 2025 ¥1,297 million / Fiscal year ending May 2026 ¥2,230 million / Year on year against the same period last year ¥71.9 million
Market Size / ShareMarket Domestic AI market / Value ¥2.778 trillion / Fiscal year 2028, Market Generative AI market / Value ¥1.7397 trillion / Fiscal year 2028, Market GPU Server Market / Value ¥260.0 billion / Fiscal year FY2028, Market GPU cloud market / Value ¥240.3 billion / Fiscal year FY2028, Market AI-related budget for fiscal 2026 / Value ¥502.7 billion / Fiscal year Fiscal 2026
New initiativesObtain NVIDIA AI Factory Specialization certification, Launch an AI Factory team comprising dedicated engineers and solution architects, Strengthen collaboration with storage vendors, Jointly develop ROBODEV, a PoC solution for physical AI, with マクニカ社, Roll out the company's own GPU cloud, GX-CLOUD, Appoint a dedicated IR officer, Introduce English-language disclosure, Disclose revenue forecasts and repeat rates on a quarterly basis
Items this document does not state (6)
Number of stores and locationsRisk amount incorporated into the outlookFinancial targetsAcquisition 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.

Large projects stalled as customers held back on orders in anticipation of the Trump tariffs, so the company focused on selling high-value-added, mid-layer solutions beyond PoCs. As a result, gross profit increased, absorbing higher SG&A expenses, including personnel and depreciation expenses, and operating income rose.

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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Explanatory Materials on the Financial Results for the Fiscal Year Ended May 2026 and Medium-Term Management Plan | GDEP ADVANCE,Inc. (5885) timely disclosure | Komori