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Revision of earnings forecasts9235Ureru Net Advertising Group Co.,Ltd.Information and Communications, Services and Others

Notice regarding the recognition of an allowance for doubtful accounts, an inventory valuation loss and an impairment loss, the revision of the full-year consolidated earnings forecast for the fiscal year ending July 2026, and the full-year consolidated earnings forecast for the fiscal year ending July 2027

The full-year earnings forecast for the fiscal year ending July 2026 was substantially revised downward to net sales of ¥1,640 million, an operating loss of ¥530 million, and a net loss attributable to owners of the parent of ¥1,100 million. In addition, a new forecast was presented for the fiscal year ending July 2027, projecting a return to profitability with net sales of ¥5,004 million, operating income of ¥202 million, and net income of ¥130 million.

Worth reading
70In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-1102
¥ million
Wording
Avoiding a definitive answer
How definitive the wording is.

Revised forecast

Fiscal year ending July 2026 · Full yearPrevious forecast published 12 September 2025
Net Sales1,880→1,640million
-12.8%
Operating profit14→-530million
-3,885.7%
Ordinary income11→-530million
-4,918.2%
Profit attributable to owners of the parent2→-1,100million
-55,100.0%
Net income per share—→—yen
—

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

Because orders and acquisition of new projects fell short of expectations, project launches were delayed, expansion of new demand was slower than expected, advertising budgets declined, the customer acquisition environment changed, and revenue recognition from cryptocurrency recovery projects was delayed. In addition, the company expects to record approximately ¥150 million in M&A-related expenses, approximately ¥130 million in allowance for doubtful accounts, approximately ¥10 million in inventory valuation losses, and approximately ¥540 million in one-off extraordinary losses.

Details and amount of extraordinary loss

Approximately ¥200 million in impairment losses on software, approximately ¥120 million in impairment losses on building-related assets, approximately ¥150 million in valuation losses on investment securities, and approximately ¥70 million in goodwill impairment losses. Total: approximately ¥540 million.

Previous-period resultsNet sales of ¥1,567 million, operating loss of ¥166 million, ordinary loss of ¥169 million, net loss attributable to owners of the parent of ¥444 million, and basic net loss per share of ¥58.49 (full fiscal year ended July 2025)
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥1,880 million → ¥1,640 million(-12.8%)
Operating profit¥14 million → ¥-530 million
Ordinary income¥11 million → ¥-530 million
Profit attributable to owners of the parent¥2 million → ¥-1,100 million
Net income per share¥0.25 → -¥132.04
Fiscal Period CoveredFiscal year ending July 2026
Period CoveredFull year
Publication date of previous forecast12 September 2025
Previous-period resultsNet sales of ¥1,567 million, operating loss of ¥166 million, ordinary loss of ¥169 million, net loss attributable to owners of the parent of ¥444 million, and basic net loss per share of ¥58.49 (full fiscal year ended July 2025)
Reason for the revisionBecause orders and acquisition of new projects fell short of expectations, project launches were delayed, expansion of new demand was slower than expected, advertising budgets declined, the customer acquisition environment changed, and revenue recognition from cryptocurrency recovery projects was delayed. In addition, the company expects to record approximately ¥150 million in M&A-related expenses, approximately ¥130 million in allowance for doubtful accounts, approximately ¥10 million in inventory valuation losses, and approximately ¥540 million in one-off extraordinary losses.
Details and amount of extraordinary lossApproximately ¥200 million in impairment losses on software, approximately ¥120 million in impairment losses on building-related assets, approximately ¥150 million in valuation losses on investment securities, and approximately ¥70 million in goodwill impairment losses. Total: approximately ¥540 million.
Consolidated / non-consolidatedConsolidated
Items this document does not state (1)
Dividend forecast revision

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.

Net sales are expected to fall short of target due to lower-than-expected orders from existing customers and acquisition of new projects, delays in project launches, slower expansion of new demand, reduced advertising budgets, changes in the customer acquisition environment following algorithm changes, and delays in recognizing revenue from cryptocurrency recovery projects. On the profit side, the company expects to record approximately ¥150 million in M&A-related expenses, approximately ¥130 million in allowance for doubtful accounts, approximately ¥10 million in inventory valuation losses, and approximately ¥540 million in one-off extraordinary losses, including impairment losses on software, building-related assets, investment securities and goodwill.

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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.
Notice regarding the recognition of an allowance for doubtful accounts, an inventory valuation loss and an impairment loss, the revision of the full-year consolidated earnings forecast for the fiscal year ending July 2026, and the full-year consolidated earnings forecast for the fiscal year ending July 2027 | Ureru Net Advertising Group Co.,Ltd. (9235) timely disclosure | Komori