Komori
Earnings presentation7046TDSE Inc.Information and Communications, Services and Others

Briefing Materials on the Financial Results for the Fiscal Year Ending March 2026 and the New Medium-Term Management Plan “SHIFT2028”

For the fiscal year ended March 2026, revenue, operating profit, ordinary profit and net profit all exceeded the previous year’s levels, driven by the expansion of the Product and AI Agent businesses. Revenue reached a record high since the Company’s founding. Meanwhile, the Consulting business remained sluggish due to the contraction of existing projects. Under the new medium-term management plan, “SHIFT2028,” the Company outlined a policy of shifting toward generative AI, AI agents and recurring-revenue businesses.

Worth reading
87Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
3005
¥ million (revenue for the fiscal year ended March 2026)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ended March 2026 (fiscal 2025)9 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,005 million+111.0%
Operating profit¥214 million+107.0%
Ordinary income¥232 million+115.0%
Net income¥174 million+127.0%
Operating profit margin7.1 %
Results for the three months of the current quarter
Net Sales
¥834 million
OtherOnly fourth-quarter revenue is disclosed
Full-year earnings forecast
Fiscal year ending March 2027 (fiscal 2026)
Net Sales
¥3,200 million
Operating profit
¥130 million
Ordinary income
¥130 million
Net income for the current fiscal year
¥85 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Company-wide revenue and profit both met the plan. Fiscal 2025 results versus the revised plan were 100% for revenue, 107% for operating profit, 113% for ordinary profit and 127% for net profit.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Labor and personnel costs (including salary increases and bonuses)Approximately ¥200 million
  • Recruitment costsApproximately ¥30 million
  • Product ProcurementApproximately ¥110 million
  • Information processing costsApproximately ¥30 million
  • Advertising expensesApproximately ¥30 million
  • Cost reduction from lower depreciation and outsourcing expensesApproximately ¥120 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • CAGR of more than 40%
    AssumptionsGenerative AI market growth rate
    Period2024→2029
  • CAGR of more than 85%
    AssumptionsAI agent market growth rate
    Period2024→2029
  • ¥1.5 trillion → ¥3.0 trillion
    AssumptionsSize of the domestic AI market
New initiatives
  • Launch of the new medium-term management plan, SHIFT2028
  • Integration of the Consulting and AI Agent businesses
  • Centralization of sales functions company-wide and redesign of the sales organization
  • Transition to a four-function structure and cross-functional teams
  • Strategic investment in generative AI and AI agent-related areas
  • API, licensing and SaaS deployment of business-specific AI agents
Key KPIsA metric the company considers important as a management benchmark.
  • New revenue from the Consulting business¥142 million+192.0%
  • Existing revenue from the Consulting business¥2,138 million+96.0%
  • Number of new customers acquired in the Product business26 Engagements
  • Retention rate for existing Product business projects80 %
  • Generative AI agent revenue mixApproximately 30
  • Subscription revenue ratioApproximately 20
Segment results
  • Consulting business
    Net Sales¥2,280 million
    Plan achievement rate (%)96
  • Product Business
    Net Sales¥412 million
    Plan achievement rate (%)100
  • AI Agent Business
    Net Sales¥313 million
    Plan achievement rate (%)142
Medium-term management plan targets
  • Revenue
    Target fiscal yearFY2028
    Target¥3.8 billion–¥4.3 billion
  • Generative AI agent revenue mix
    Target fiscal yearFY2028
    Target60%
  • Subscription revenue ratio
    Target fiscal yearFY2028
    Target30%
  • Operating margin
    Target fiscal yearFY2028
    Target8%
Market Size / Share
  • Size of the domestic AI market¥1.5 trillion → ¥3.0 trillion
  • Generative AI market growth rateCAGR of more than 40%
  • AI agent market growth rateCAGR of more than 85%
  • Social media marketing advertising and operations marketApproximately ¥1 trillion domestically
Number of employees
Number of Employees194 people
Record date1 April 2026
Year-earlier period
Number of Employees184 people
Record dateApril 2025
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ended March 2026 (fiscal 2025)
Net Sales¥3,005 million (YoY +111.0%)
Operating profit¥214 million (YoY +107.0%)
Ordinary income¥232 million (YoY +115.0%)
Net income¥174 million (YoY +127.0%)
Operating profit margin7.1 %
Results for the three months of the current quarterNet Sales ¥834 million / Other Only fourth-quarter revenue is disclosed
Full-year earnings forecastSubject Fiscal year ending March 2027 (fiscal 2026) / Net Sales ¥3,200 million / Operating profit ¥130 million / Ordinary income ¥130 million / Net income for the current fiscal year ¥85 million
Self-assessment against the planCompany-wide revenue and profit both met the plan. Fiscal 2025 results versus the revised plan were 100% for revenue, 107% for operating profit, 113% for ordinary profit and 127% for net profit.
Segment resultsSegment Consulting business / Net Sales ¥2,280 million / yoy_pct 99 / Plan achievement rate (%) 96, Segment Product Business / Net Sales ¥412 million / yoy_pct 122 / Plan achievement rate (%) 100, Segment AI Agent Business / Net Sales ¥313 million / yoy_pct 443 / Plan achievement rate (%) 142
Breakdown of Factors Affecting the ChangeFactors Labor and personnel costs (including salary increases and bonuses) / Amount Approximately ¥200 million, Factors Recruitment costs / Amount Approximately ¥30 million, Factors Product Procurement / Amount Approximately ¥110 million, Factors Information processing costs / Amount Approximately ¥30 million, Factors Advertising expenses / Amount Approximately ¥30 million, Factors Cost reduction from lower depreciation and outsourcing expenses / Amount Approximately ¥120 million
Key KPIsIndicator New revenue from the Consulting business / Value ¥142 million / yoy_pct ¥192 million, Indicator Existing revenue from the Consulting business / Value ¥2,138 million / yoy_pct ¥96 million, Indicator Number of new customers acquired in the Product business / Value 26 Engagements / Year on year Not disclosed, Indicator Retention rate for existing Product business projects / Value 80 % / Year on year Not disclosed, Indicator Generative AI agent revenue mix / Value Approximately 30 / Year on year Not disclosed, Indicator Subscription revenue ratio / Value Approximately 20 / Year on year Not disclosed
Number of employeesNumber of Employees 194 people / Record date 1 April 2026 / Year-earlier period Number of Employees 184 people / Record date April 2025
Assumptions Underlying the Business OutlookAssumptions Generative AI market growth rate / Value CAGR of more than 40% / Period 2024→2029, Assumptions AI agent market growth rate / Value CAGR of more than 85% / Period 2024→2029, Assumptions Size of the domestic AI market / Value ¥1.5 trillion → ¥3.0 trillion / Period Not disclosed
Medium-term management plan targetsTarget fiscal year FY2028 / Indicator Revenue / Target ¥3.8 billion–¥4.3 billion, Target fiscal year FY2028 / Indicator Generative AI agent revenue mix / Target 60%, Target fiscal year FY2028 / Indicator Subscription revenue ratio / Target 30%, Target fiscal year FY2028 / Indicator Operating margin / Target 8%
Market Size / ShareItem Size of the domestic AI market / Value ¥1.5 trillion → ¥3.0 trillion, Item Generative AI market growth rate / Value CAGR of more than 40%, Item AI agent market growth rate / Value CAGR of more than 85%, Item Social media marketing advertising and operations market / Value Approximately ¥1 trillion domestically
New initiativesLaunch of the new medium-term management plan, SHIFT2028, Integration of the Consulting and AI Agent businesses, Centralization of sales functions company-wide and redesign of the sales organization, Transition to a four-function structure and cross-functional teams, Strategic investment in generative AI and AI agent-related areas, API, licensing and SaaS deployment of business-specific AI agents
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsAnnual 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.

Revenue increased as the Company strengthened sales expansion in the Product business and aggressively pursued corporate customers through the AI Agent business. In the Consulting business, the contraction of some projects for existing customers had an impact. For the new fiscal year, the Company plans to significantly increase strategic investment and structural reforms in generative AI and AI agent-related areas, and has therefore adopted a plan that limits operating profit.

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.
Briefing Materials on the Financial Results for the Fiscal Year Ending March 2026 and the New Medium-Term Management Plan “SHIFT2028” | TDSE Inc. (7046) timely disclosure | Komori