Worth reading
31Immaterial
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
8.1
Percentage points (year-on-year decline in gross profit margin)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending November 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesRevenue growth
Operating profitLoss-making
Gross Profit Margin
Rate22.2%
Year on year against the same period last yearDown 8.1 percentage points year on year
Selling, general and administrative expensesThe company worked to control selling, general and administrative expenses (amount Not disclosed)
Results for the three months of the current quarterThe company stated that revenue increased and operating profit and EBITDA were negative, but the standalone figures for the three-month quarter were Not disclosed
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
In line with the initial plan / progress in line with the planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
Factors behind the first-quarter losses, the decline in the GRC Security business's profit margin, lower revenue and profit in the Financial Technology business, the order environment, the outlook for achieving the full-year plan, AI initiatives, and the establishment of a subsidiary and its impact on existing businessesBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Upfront investments, higher outsourcing costs, the impact of the suspension of a major project in the Financial Technology business, and investment in a joint development project for a proprietary AI model in the GRC Security business
New initiatives
A joint development project for a proprietary AI model with フィックスターズ, stepped-up hiring, development of new services, feature development for in-house products, a shift in the business structure toward recurring revenue, and the establishment of the subsidiary GRCSテクノロジーズSegment results
GRC Security business: double-digit revenue growth, with a decline in profit margin (figure Not disclosed). Financial Technology business: significant declines in revenue and gross profit (figures Not disclosed)Medium-term management plan targets
The company referred to its growth strategy toward 2030, but the target figures were Not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending November 2026 |
| Net Sales | Revenue growth |
| Operating profit | Loss-making |
| Gross Profit Margin | Rate 22.2% / Year on year against the same period last year Down 8.1 percentage points year on year |
| Selling, general and administrative expenses | The company worked to control selling, general and administrative expenses (amount Not disclosed) |
| Results for the three months of the current quarter | The company stated that revenue increased and operating profit and EBITDA were negative, but the standalone figures for the three-month quarter were Not disclosed |
| Self-assessment against the plan | In line with the initial plan / progress in line with the plan |
| Segment results | GRC Security business: double-digit revenue growth, with a decline in profit margin (figure Not disclosed). Financial Technology business: significant declines in revenue and gross profit (figures Not disclosed) |
| Breakdown of Factors Affecting the Change | Upfront investments, higher outsourcing costs, the impact of the suspension of a major project in the Financial Technology business, and investment in a joint development project for a proprietary AI model in the GRC Security business |
| Medium-term management plan targets | The company referred to its growth strategy toward 2030, but the target figures were Not disclosed |
| Key points of the Q&A | Factors behind the first-quarter losses, the decline in the GRC Security business's profit margin, lower revenue and profit in the Financial Technology business, the order environment, the outlook for achieving the full-year plan, AI initiatives, and the establishment of a subsidiary and its impact on existing businesses |
| New initiatives | A joint development project for a proprietary AI model with フィックスターズ, stepped-up hiring, development of new services, feature development for in-house products, a shift in the business structure toward recurring revenue, and the establishment of the subsidiary GRCSテクノロジーズ |
Items this document does not state (18)
Ordinary incomeNet incomeOperating profit marginFull-year earnings forecastProgress against full-year forecastKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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.Gross profit margin declined and pressured earnings due to upfront investments for future growth, higher outsourcing costs and the impact of the suspension of a major project in the Financial Technology business in the previous year. The company cited higher outsourcing costs for project execution and investment in a joint development project for a proprietary AI model in the GRC Security business, as well as the impact of the suspension of a major project for a securities company in the Financial Technology business.
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.