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Earnings presentation9556INTLOOP Inc.Information and Communications, Services and Others

FY26/7 Q3 Third-Quarter Financial Results Presentation

Cumulative Q3 revenue and gross profit increased, but operating profit declined as recruiting and personnel expenses significantly exceeded budget. Accordingly, the full-year FY26/7 forecast was revised downward, while the FY27/7 forecast, AI-related initiatives and share buyback were also presented.

Worth reading
75Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
1700
¥ millions (increase in recruiting and personnel expenses versus the initial budget)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationThird quarter of the fiscal year ending July 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥29,945 million+20.8%
Operating profit¥610 million-59.7%
Ordinary income¥650 million-58.1%
Net income¥150 million -82.4%profit attributable to owners of the parent
Gross Profit Margin29.9%
Operating profit margin2.0%
Results for the three months of the current quarter
Consolidated
Net Sales
¥10,588 million
Gross profit
¥3,271 million
Gross Profit Margin
30.9%
Year-on-year change+3.6pt
Operating profit
¥-387 million
Full-year earnings forecast
Revised FY26/7 forecast
Net Sales
¥40,000 million
Operating profit
¥1,400 million
Ordinary income
¥1,400 million
Net income
¥650 million
FY27/7 forecast
Net Sales
48,000～50,500
Gross profit
15,200～16,300
Operating profit
3,500～4,600
Ordinary income
3,500～4,600
Net income
2,300～3,000
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。
FY26/7 revenue68.4%
Operating profit19.7%
Ordinary income20.2%
Net income7.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue and gross profit are broadly progressing in line with plan. Operating profit is below plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Recruiting and personnel expenses¥1.73 billion increase versus the initial budget
  • Q3 recruiting and personnel expenses¥1,560 millions year-on-year increase
  • Q3 advertising expenses¥-33 millions year on year
  • Q3 other SG&A expenses¥189 millions year-on-year increase
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • 20.0%～26.3%
    AssumptionsRevenue growth rate (FY27/7)
  • 31.7%～32.3%
    AssumptionsGross profit margin (FY27/7)
  • 7.3%～9.1%
    AssumptionsOperating margin (FY27/7)
New initiatives
  • Transition to an AI-centric company
  • Full-scale rollout of INTLOOP Pocket, a business-specific AI agent
  • Launch of AI BPO consulting
  • Acquisition of 100% of Cross System Service Co., Ltd. and collaboration with the company
  • Share Repurchases
  • Establishment of a sector-by-solution matrix structure
  • Establishment of a new AI modernization business
Key KPIsA metric the company considers important as a management benchmark.
  • Number of registered freelancers57,000 participants
  • Number of active freelancers1,562 people
  • Number of delivery employees673 people
    Year on year against the same period last year+139 people (versus 26/Q2)
  • Number of other employees358 people
    Year on year against the same period last year+72 people (versus 26/Q2)
  • Senior-level hires (INTLOOP)16 people cumulative Q3
    Year on year against the same period last year13 people in FY25 total
  • Senior-level hires (INTLOOP Strategy)16 people cumulative Q3
    Year on year against the same period last year4 people in FY25 total
  • Senior-level hires (INTLOOP Project Management)32 people cumulative Q3
    Year on year against the same period last year0 people in FY25 total
Medium-term management plan targets
The company aims to achieve the targets of its medium-term management plan, INTLOOP VISION 2030. Specific target figures and fiscal years: not disclosed
Market Size / Share
  • Domestic IT services market¥8.1 trillions 2027 forecast
  • Domestic DX market¥8 trillions 2030 forecast
  • Domestic consulting market¥2.1 trillions 2030 forecast
  • IT talent shortage in 20306.4 million people
Number of employees
Number of Employees1,031 people FY26/7 Q3: 673 delivery employees and 358 other employees
Change during the periodVersus Q2: +139 delivery employees and +72 other employees
Acquisition of treasury shares
Maximum number of shares to be acquired190,000 Shares
Maximum total acquisition cost300 Shares
Purchase price unit¥ million
Period12 June 2026 to 29 January 2027
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredThird quarter of the fiscal year ending July 2026
Net Sales¥29,945 million (YoY +20.8%)
Operating profit¥610 million (YoY -59.7%)
Ordinary income¥650 million (YoY -58.1%)
Net income¥150 million (profit attributable to owners of the parent) (YoY -82.4%)
Gross Profit Margin29.9%
Operating profit margin2.0%
Results for the three months of the current quarterConsolidated Net Sales ¥10,588 million / Gross profit ¥3,271 million / Gross Profit Margin 30.9% / Operating profit ¥-387 million
Full-year earnings forecastRevised FY26/7 forecast Net Sales ¥40,000 million / Operating profit ¥1,400 million / Ordinary income ¥1,400 million / Net income ¥650 million / FY27/7 forecast Net Sales 48,000～50,500 / Gross profit 15,200～16,300 / Operating profit 3,500～4,600 / Ordinary income 3,500～4,600 / Net income 2,300～3,000
Progress against full-year forecastFY26/7 revenue 68.4% / Operating profit 19.7% / Ordinary income 20.2% / Net income 7.1%
Self-assessment against the planRevenue and gross profit are broadly progressing in line with plan. Operating profit is below plan.
Breakdown of Factors Affecting the ChangeFactors Recruiting and personnel expenses / Amount ¥1.73 billion increase versus the initial budget, Factors Q3 recruiting and personnel expenses / Amount ¥1,560 millions (year-on-year increase), Factors Q3 advertising expenses / Amount ¥-33 millions (year on year), Factors Q3 other SG&A expenses / Amount ¥189 millions (year-on-year increase)
Key KPIsIndicator name Number of registered freelancers / Value 57,000 participants / Year on year against the same period last year Not disclosed, Indicator name Number of active freelancers / Value 1,562 people / Year on year against the same period last year Not disclosed, Indicator name Number of delivery employees / Value 673 people / Year on year against the same period last year +139 people (versus 26/Q2), Indicator name Number of other employees / Value 358 people / Year on year against the same period last year +72 people (versus 26/Q2), Indicator name Senior-level hires (INTLOOP) / Value 16 people (cumulative Q3) / Year on year against the same period last year 13 people in FY25 total, Indicator name Senior-level hires (INTLOOP Strategy) / Value 16 people (cumulative Q3) / Year on year against the same period last year 4 people in FY25 total, Indicator name Senior-level hires (INTLOOP Project Management) / Value 32 people (cumulative Q3) / Year on year against the same period last year 0 people in FY25 total
Number of employeesNumber of Employees 1,031 people (FY26/7 Q3: 673 delivery employees and 358 other employees) / Change during the period Versus Q2: +139 delivery employees and +72 other employees
Assumptions Underlying the Business OutlookAssumptions Revenue growth rate (FY27/7) / Value 20.0%～26.3%, Assumptions Gross profit margin (FY27/7) / Value 31.7%～32.3%, Assumptions Operating margin (FY27/7) / Value 7.3%～9.1%
Medium-term management plan targetsThe company aims to achieve the targets of its medium-term management plan, INTLOOP VISION 2030. Specific target figures and fiscal years: not disclosed
Acquisition of treasury sharesMaximum number of shares to be acquired 190,000 Shares / Maximum total acquisition cost 300 Shares / Purchase price unit ¥ million / Period 12 June 2026 to 29 January 2027
Market Size / ShareMarket Domestic IT services market / Value ¥8.1 trillions (2027 forecast), Market Domestic DX market / Value ¥8 trillions (2030 forecast), Market Domestic consulting market / Value ¥2.1 trillions (2030 forecast), Market IT talent shortage in 2030 / Value 6.4 million people
New initiativesTransition to an AI-centric company, Full-scale rollout of INTLOOP Pocket, a business-specific AI agent, Launch of AI BPO consulting, Acquisition of 100% of Cross System Service Co., Ltd. and collaboration with the company, Share Repurchases, Establishment of a sector-by-solution matrix structure, Establishment of a new AI modernization business
Items this document does not state (11)
Selling, general and administrative expensesSegment resultsUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioCapital 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.

Recruitment, primarily of senior-level talent and delivery personnel, progressed faster than planned, creating a time lag before newly hired employees began contributing to revenue. As a result, recruiting and personnel expenses exceeded budget. From Q4 onward, the company plans to keep investment in personnel within budget and restore profitability by leveraging its expanded human capital and increasing utilization of delivery personnel.

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.
FY26/7 Q3 Third-Quarter Financial Results Presentation | INTLOOP Inc. (9556) timely disclosure | Komori