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Presentation materials for financial results9552Quants Research Institute Holdings,Inc.Information and Communications, Services and Others

Second-Quarter Financial Results Briefing Materials for the Fiscal Year Ending September 2026

In the second quarter, revenue, operating profit and net income exceeded the year-earlier period. At the same time, in the M&A brokerage business, the hiring criteria and criteria for accepting mandates were tightened, resulting in declines in the number of advisers and outstanding mandates. In light of the accounting treatment for JOL products in the incubation business, the full-year revenue forecast was raised, while the operating profit and net income forecasts were lowered, and a share buyback was approved.

Worth reading
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
215
¥ millions (full-year operating profit forecast reduction)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending September 202615 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥10,296 million+34.4%
Operating profit¥3,023 million+26.6%
Net income¥1,905 million+27.9%
Operating profit margin29.4 %
Results for the three months of the current quarter
M&A advisory business
Net Sales
¥4,583 million
Operating profit
¥2,052 million
Operating profit margin
44.8 %
Consulting business
Net Sales
¥934 million
Year on year against the same period last year+173.9%
Full-year earnings forecast
Net Sales
¥22,292 million
Operating profit
¥5,778 million
Operating profit margin
25.9 %
Net income
¥3,405 million
Earnings per share
¥62.99
M&A brokerage business revenue
¥18,000 million
M&A brokerage business operating profit
¥6,499 million
Consulting business revenue
¥3,800 million
Consulting business operating income
¥-650 million
Incubation business revenue
¥492 million
Incubation business operating profit
¥-70 million
Incubation business profit before income taxes
¥-140 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。
Net Sales46.2 %
Operating profit52.3 %
Net income56 %
M&A brokerage business revenue47.4 %
M&A brokerage business operating profit51.5 %
Consulting business revenue43.6 %
Incubation business revenue23.3 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The consulting business is broadly in line with expectations. At present, there is no significant gap from the full-year plan.
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. The number of new mandates increased from the first quarter. The slight decline in outstanding mandates resulted from applying the tightened criteria to existing mandates as well and excluding mandates that did not meet the criteria.
  2. The closing rate has not yet recovered materially, but improvement is expected from greater management involvement in transactions and tighter mandate-acceptance criteria.
  3. The decline in the number of advisers resulted from tighter hiring criteria. AI will be used to improve productivity per person.
  4. Revenue progress in the consulting business was 43.6%. At present, there is no significant gap from the full-year plan.
  5. Because JOL products require asset recognition under IFRS, JOLCO products, which will not be consolidated, will be the main focus going forward.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Closing of large transactions, an increase in the number of consultants, depreciation expense on aircraft following the recognition of JOL products on the consolidated balance sheet, the time required to improve the closing rate, and tighter hiring and mandate-acceptance criteria
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Consulting business utilization rateApproximately 90%
M&A brokerage business transactions closedApproximately 250 transactions
M&A brokerage business average transaction valueApproximately ¥70 million
M&A brokerage business transaction-closing periodApproximately 7 months
Number of consultants300 people
New initiatives
  • Establish an AI Lab internally
  • Tighten mandate-acceptance and hiring criteria in the M&A brokerage business
  • Change to a structure in which division heads personally handle transactions
  • Promote holding company management through the appointment of the representative director of M&A総合研究所
  • Structure products centered on JOLCO in the incubation business
  • Share repurchases
Key KPIsA metric the company considers important as a management benchmark.
  • Completed Engagements55 Engagements
    Year on year against the same period last year+6 transactions
  • Number of large transactions closed8 Engagements
  • Number of outstanding mandates1,643 Engagements
  • Number of advisers348 People
  • Number of consultants199 People
    Year on year against the same period last year+176.4%
  • Utilization rate90 Approximately %
  • Net income per share¥35.25
    Year on year against the same period last year+38.4%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Completed Engagements
55 Engagements
Placement fee
¥83 million
Number of advisers
348 People
Number of consultants
199 People
Segment results
M&A advisory business
Net Sales
¥8,523 million
Year-on-year change in revenue20.1
Operating profit
¥3,348 million
Year-on-year operating profit growth29
Consulting business
Net Sales
¥1,658 million
Year-on-year change in revenue194.2
Operating profit
¥-247 million
Incubation business
Net Sales
¥114 million
Operating profit
¥-51 million
Medium-term management plan targets
4–5 years from nowBring the revenue scale of the M&A brokerage business and consulting business to the same level
Fiscal year ending September 2027Have more than 75% of consultants become AI experts
Orders received and order backlog
Number of outstanding mandates
1,643 Engagements
Number of stores and locations
Number at period-endTokyo headquarters; offices in Sapporo, Sendai, Takasaki, Nagoya, Osaka, Fukuoka and Okinawa; and a Singapore subsidiary
Number of employees
M&A adviser348
Consultant199
Number of consultants, including scheduled hiresApproximately 290 people
Hiring plan320–350 M&A advisers and 300 consultants
Annual Dividend
Undecided at present for the fiscal year ending September 2026; ¥5 per share for the fiscal year ended September 2025
Payout ratio
10 %
DetailsReference levels
Acquisition of treasury shares
Number of shares acquired4,300,000 shares (maximum)
Acquisition price¥3,800,000,000 (maximum)
Acquisition period18 May 2026–17 May 2027
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending September 2026
Net Sales¥10,296 million (YoY +34.4%)
Operating profit¥3,023 million (YoY +26.6%)
Net income¥1,905 million (YoY +27.9%)
Operating profit margin29.4 %
Results for the three months of the current quarterM&A advisory business Net Sales ¥4,583 million / Operating profit ¥2,052 million / Operating profit margin 44.8 % / Consulting business Net Sales ¥934 million / Year on year against the same period last year 173.9
Full-year earnings forecastNet Sales ¥22,292 million / Operating profit ¥5,778 million / Operating profit margin 25.9 % / Net income ¥3,405 million / Earnings per share ¥62.99 / M&A brokerage business revenue ¥18,000 million / M&A brokerage business operating profit ¥6,499 million / Consulting business revenue ¥3,800 million / Consulting business operating income ¥-650 million / Incubation business revenue ¥492 million / Incubation business operating profit ¥-70 million / Incubation business profit before income taxes ¥-140 million
Progress against full-year forecastNet Sales 46.2 % / Operating profit 52.3 % / Net income 56 % / M&A brokerage business revenue 47.4 % / M&A brokerage business operating profit 51.5 % / Consulting business revenue 43.6 % / Incubation business revenue 23.3 %
Self-assessment against the planThe consulting business is broadly in line with expectations. At present, there is no significant gap from the full-year plan.
Segment resultsM&A advisory business Net Sales ¥8,523 million / Year-on-year change in revenue 20.1 / Operating profit ¥3,348 million / Year-on-year operating profit growth 29 / Consulting business Net Sales ¥1,658 million / Year-on-year change in revenue 194.2 / Operating profit ¥-247 million / Incubation business Net Sales ¥114 million / Operating profit ¥-51 million
Breakdown of Factors Affecting the ChangeClosing of large transactions, an increase in the number of consultants, depreciation expense on aircraft following the recognition of JOL products on the consolidated balance sheet, the time required to improve the closing rate, and tighter hiring and mandate-acceptance criteria
Key KPIsIndicator name Completed Engagements / Value 55 Engagements / Year on year against the same period last year +6 transactions, Indicator name Number of large transactions closed / Value 8 Engagements, Indicator name Number of outstanding mandates / Value 1,643 Engagements, Indicator name Number of advisers / Value 348 People, Indicator name Number of consultants / Value 199 People / Year on year against the same period last year 176.4 People, Indicator name Utilization rate / Value 90 Approximately %, Indicator name Net income per share / Value ¥35.25 / Year on year against the same period last year ¥38.4
Unit price and quantity metricsCompleted Engagements 55 Engagements / Placement fee ¥83 million / Number of advisers 348 People / Number of consultants 199 People
Number of stores and locationsNumber at period-end Tokyo headquarters; offices in Sapporo, Sendai, Takasaki, Nagoya, Osaka, Fukuoka and Okinawa; and a Singapore subsidiary / Number of store openings and closures during the period Not disclosed
Number of employeesM&A adviser 348 / Consultant 199 / Number of consultants, including scheduled hires Approximately 290 people / Hiring plan 320–350 M&A advisers and 300 consultants
Assumptions Underlying the Business OutlookConsulting business utilization rate Approximately 90% / M&A brokerage business transactions closed Approximately 250 transactions / M&A brokerage business average transaction value Approximately ¥70 million / M&A brokerage business transaction-closing period Approximately 7 months / Number of consultants 300 people
Medium-term management plan targets4–5 years from now Bring the revenue scale of the M&A brokerage business and consulting business to the same level / Fiscal year ending September 2027 Have more than 75% of consultants become AI experts
Annual DividendUndecided at present for the fiscal year ending September 2026; ¥5 per share for the fiscal year ended September 2025
Payout ratio10 %
Acquisition of treasury sharesNumber of shares acquired 4,300,000 shares (maximum) / Acquisition price ¥3,800,000,000 (maximum) / Acquisition period 18 May 2026–17 May 2027
Orders received and order backlogNumber of outstanding mandates 1,643 Engagements
Key points of the Q&AThe number of new mandates increased from the first quarter. The slight decline in outstanding mandates resulted from applying the tightened criteria to existing mandates as well and excluding mandates that did not meet the criteria., The closing rate has not yet recovered materially, but improvement is expected from greater management involvement in transactions and tighter mandate-acceptance criteria., The decline in the number of advisers resulted from tighter hiring criteria. AI will be used to improve productivity per person., Revenue progress in the consulting business was 43.6%. At present, there is no significant gap from the full-year plan., Because JOL products require asset recognition under IFRS, JOLCO products, which will not be consolidated, will be the main focus going forward.
New initiativesEstablish an AI Lab internally, Tighten mandate-acceptance and hiring criteria in the M&A brokerage business, Change to a structure in which division heads personally handle transactions, Promote holding company management through the appointment of the representative director of M&A総合研究所, Structure products centered on JOLCO in the incubation business, Share repurchases
Items this document does not state (7)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesRisk amount incorporated into the outlookFinancial targetsCapital expendituresMarket 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.

Following discussions with the audit firm regarding JOL products in the incubation business, it was determined that the assets must be recognized on the consolidated balance sheet under IFRS, resulting in depreciation expense on the aircraft. The change to the revenue forecast reflects the sales status of JOLCO products. In the M&A brokerage business, the difficulty of closing transactions increased as market conditions changed, creating a gap with the pace of headcount expansion and reducing productivity. The criteria for accepting mandates and hiring criteria were therefore tightened.

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Second-Quarter Financial Results Briefing Materials for the Fiscal Year Ending September 2026 | Quants Research Institute Holdings,Inc. (9552) timely disclosure | Komori