Worth reading
69In focus
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
-129
¥ million (year-on-year change in consolidated revenue)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFY February 2027 Q1 (March–May 2026)9 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥995 million-11.5%
Operating profit¥-35 million+42.7%
Ordinary income¥-46 million+31.6%
Net income¥-38 million+36.6%
Selling, general and administrative expenses¥588 million
Results for the three months of the current quarter
Net Sales
¥995 million
Operating profit
¥-35 million
Ordinary income
¥-46 million
Profit attributable to owners of parent for the quarter
¥-38 million
EBITDA
¥20 million
Full-year earnings forecast
Net Sales
¥4,600 million
Operating profit
¥330 million
Ordinary income
¥290 million
Profit attributable to owners of the parent
¥160 million
Operating profit margin
7.2 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
AI business operating profit versus the previous quarter
Operating profit for the previous Q4 period70
Decrease in revenue-99
Increase in cost of sales-23
Decrease in SG&A expenses26
Operating profit for the current Q1 period-26
Key drivers
- Decline in sales to light-need users
- Delays in orders for large projects
- Temporary increase in generative AI-related expenses, among other factors
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
FY27 revenue growth target from M&A
¥1,000 million
Revenue growth from M&A and M&A-related expensesNot included in the earnings forecast
New initiatives
- Business transformation from SaaS and commissioned development to a SaS/FDE model
- Organizational transformation from more than 150 people to approximately 40 (effective 1 July 2026)
- Launch of implementation of MOS, a fully AI-driven organization
- Development of fully automated translation AI and comprehensive deployment at グローヴァ
- External sale of fully automated translation AI to translation companies and translators
- Focus on customer-specific plugin development for STUDIO55's architectural BIM and DX system
Key KPIsA metric the company considers important as a management benchmark.
- High-accuracy translation usage word count index143 Index third week of April 2026 = 100
- Revision rate for ultra-high-accuracy mode0.05 %
- Orders received for architectural BIM and DX plugin development (2026)¥450 millionYear on year against the same period last year3.8x previous period
- Orders received for architectural BIM and DX plugin development (2027 forecast)¥650 millionYear on year against the same period last yearExpected to be 2.0x the current period
- Equity ratio42.5 %Year on year against the same period last year-0.4 percentage points from the previous fiscal year-end
- Interest-Bearing Debt¥1,360 millionYear on year against the same period last year-9.9% from the end of the previous period
Segment results
Net Sales
AI Business
¥583 million-16.2%
HT business
¥165 million-14.0%
Metaverse Business
¥26 million-23.3%
AI/MV Marketing business
¥220 million+9.4%
Operating profit
AI Business
¥-26 million-33.0%
HT business
¥29 million-19.3%
Metaverse Business
¥-7 million+70.0%
AI/MV Marketing business
¥2 million+127.8%
Other head office costs and expenses
¥-33 million+21.5%
Medium-term management plan targets
FY27 revenue target
¥6,000 million
FY27 revenue target for existing businesses
¥5,000 million
FY30 revenue target
¥15,000 million
Market Size / Share
Domestic translation industry market size
¥100,000 million or more
Estimated translation costs
¥50,000 million or more
Domestic translation market
¥248,800 million 2021 estimate
Orders received and order backlog
Orders received for architectural BIM and DX plugin development
2026
¥450 million
2027 plan
¥650 million
Number of employees
Before reformMore than 150
After reformApproximately 40
NotesIncludes outsourced personnel under contracts other than regular employment contracts
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | FY February 2027 Q1 (March–May 2026) |
| Net Sales | ¥995 million (YoY -11.5%) |
| Operating profit | ¥-35 million (YoY +42.7%) |
| Ordinary income | ¥-46 million (YoY +31.6%) |
| Net income | ¥-38 million (YoY +36.6%) |
| Selling, general and administrative expenses | ¥588 million |
| Results for the three months of the current quarter | Net Sales ¥995 million / Operating profit ¥-35 million / Ordinary income ¥-46 million / Profit attributable to owners of parent for the quarter ¥-38 million / EBITDA ¥20 million |
| Full-year earnings forecast | Net Sales ¥4,600 million / Operating profit ¥330 million / Ordinary income ¥290 million / Profit attributable to owners of the parent ¥160 million / Operating profit margin 7.2 % |
| Segment results | Net Sales AI Business ¥583 million (YoY -16.2%) / HT business ¥165 million (YoY -14.0%) / Metaverse Business ¥26 million (YoY -23.3%) / AI/MV Marketing business ¥220 million (YoY +9.4%) / Operating profit AI Business ¥-26 million (YoY -33.0%) / HT business ¥29 million (YoY -19.3%) / Metaverse Business ¥-7 million (YoY +70.0%) / AI/MV Marketing business ¥2 million (YoY +127.8%) / Other head office costs and expenses ¥-33 million (YoY +21.5%) |
| Breakdown of Factors Affecting the Change | AI business operating profit versus the previous quarter Operating profit for the previous Q4 period 70 / Decrease in revenue -99 / Increase in cost of sales -23 / Decrease in SG&A expenses 26 / Operating profit for the current Q1 period -26 / Key drivers Decline in sales to light-need users, Delays in orders for large projects, Temporary increase in generative AI-related expenses, among other factors |
| Key KPIs | Indicator name High-accuracy translation usage word count index / Value 143 Index (third week of April 2026 = 100) / Year on year against the same period last year Not disclosed, Indicator name Revision rate for ultra-high-accuracy mode / Value 0.05 % / Year on year against the same period last year Not disclosed, Indicator name Orders received for architectural BIM and DX plugin development (2026) / Value ¥450 million / Year on year against the same period last year 3.8x previous period, Indicator name Orders received for architectural BIM and DX plugin development (2027 forecast) / Value ¥650 million / Year on year against the same period last year Expected to be 2.0x the current period, Indicator name Equity ratio / Value 42.5 % / Year on year against the same period last year -0.4 percentage points from the previous fiscal year-end, Indicator name Interest-Bearing Debt / Value ¥1,360 million / Year on year against the same period last year -9.9% from the end of the previous period |
| Number of employees | Before reform More than 150 / After reform Approximately 40 / Notes Includes outsourced personnel under contracts other than regular employment contracts |
| Assumptions Underlying the Business Outlook | FY27 revenue growth target from M&A ¥1,000 million / Revenue growth from M&A and M&A-related expenses Not included in the earnings forecast |
| Medium-term management plan targets | FY27 revenue target ¥6,000 million / FY27 revenue target for existing businesses ¥5,000 million / FY30 revenue target ¥15,000 million |
| Orders received and order backlog | AI business orders received Not disclosed / Orders received for architectural BIM and DX plugin development 2026 ¥450 million / 2027 plan ¥650 million |
| Market Size / Share | Domestic translation industry market size ¥100,000 million or more / Estimated translation costs ¥50,000 million or more / Domestic translation market ¥248,800 million (2021 estimate) |
| New initiatives | Business transformation from SaaS and commissioned development to a SaS/FDE model, Organizational transformation from more than 150 people to approximately 40 (effective 1 July 2026), Launch of implementation of MOS, a fully AI-driven organization, Development of fully automated translation AI and comprehensive deployment at グローヴァ, External sale of fully automated translation AI to translation companies and translators, Focus on customer-specific plugin development for STUDIO55's architectural BIM and DX system |
Items this document does not state (13)
Gross Profit MarginOperating profit marginProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk 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.Lower sales to light-need users, where substitution by general-purpose AI has progressed; delays in orders for multiple large-scale projects involving commissioned AI-related development; and one-time upfront costs incurred to reduce generative AI-related expenses, network costs and maintenance expenses.
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.