Broadleaf revised its consolidated earnings forecast for the fiscal year ending December 2026. While advancing the transition to cloud software, the company said it would increase upfront investment in response to the loss of a major SALES GO contract and the review of implementation schedules due to difficulties procuring hardware.
Broadleaf revised its consolidated earnings forecast for the fiscal year ending December 2026, lowering its revenue forecast from ¥23.800 billion to ¥22.500 billion, which would represent an 8.1% increase from the previous fiscal year. Operating profit was also revised from ¥4.800 billion to ¥3.500 billion, with a 69.7% increase projected.
Factors behind the downward revenue revision included the loss of a major contract at consolidated subsidiary SALES GO, despite steady progress in the transition to cloud software, as well as adjustments to implementation schedules due to support prioritizing security measures and difficulties procuring servers and other equipment.
On costs, the company explained that while hardware procurement costs are expected to decline, it anticipates strategic upfront investment in preparation for future risks, including IT infrastructure upgrades and security expenses associated with application improvements.
Net income attributable to owners of the parent was revised from ¥3.200 billion to ¥2.300 billion, and the company said it would maintain its year-end dividend forecast at ¥4.00 per share (after the stock split).