FY2026 full-year performance hinges on booking large projects in Q4

For the nine months ended Q3, revenue was ¥1,679 million, operating profit was ¥297 million, ordinary profit was ¥299 million and net income was ¥205 million. The latest full-year forecasts are revenue of ¥2,700 million, operating profit of ¥630 million, ordinary profit of ¥620 million and net income of ¥430 million, representing progress of 62.2%, 47.1% and 47.7% for revenue, operating profit and net income, respectively. On a simple calculation, Q4 would need to generate revenue of ¥1,021 million, operating profit of ¥333 million and net income of ¥225 million.

By revenue category, the nine-month figures were ¥950.287 million from license sales, ¥390.225 million from services and ¥339.104 million from other merchandise and related sales. The company has explained that license sales will be concentrated in Q4 and that it plans to book revenue from large solution-service deals. Accordingly, in assessing full-year performance, it will be necessary to determine whether the Q4 license revenue reflects merely a shift between periods or includes growth from new and renewal projects.

FY2025 actual revenue was ¥2,404 million, operating profit was ¥565 million and net income was ¥410 million, while FY2026 forecasts call for revenue growth of 12.3%, operating profit growth of 11.5% and net income growth of 4.7%. As the plan calls for profit growth below revenue growth, attention should be paid not only to Q4 revenue but also to gross margin by project, the profitability of solution services and the timing of upfront costs.