At its FY2026 second-quarter earnings briefing, Broad Enterprise reported revenue of ¥5.693 billion, up 87.7% year on year and a new record high. The company raised its full-year forecast by 17% to ¥11.7 billion.
Broad Enterprise announced at its earnings briefing for the second quarter of the fiscal year ending December 2026 that revenue had risen sharply year on year to ¥5.693 billion, a new record high. Representative Director Nakanishi Ryosuke (中西良祐) said both revenue and operating profit were performing well, indicating that the full-year forecast would be revised upward.
The full-year revenue forecast was raised from ¥10.0 billion to ¥11.7 billion, while the operating profit forecast was raised from ¥1.7 billion to ¥2.3 billion. Cumulative progress through the second quarter was 56.9% against the pre-revision plan and 48.7% against the revised plan, which the company said indicated steady progress even after the upward revision.
The main drivers of revenue growth were the expansion of the Buro Room and Buro Wall services, which posted growth of more than 200% year on year. The cumulative number of B-CUBIC installations in the Internet Services business reached 16,790, while the newly acquired business in the Real Estate Distribution Management segment is also being consolidated.
Following the acquisition of 日本中央管理株式会社, the segments were reorganized around two core businesses: Internet Services and Real Estate Distribution Management. Consolidation of the balance sheet is scheduled to begin in the second quarter, and consolidation of the income statement in the third quarter. Consolidated revenue is expected to reach ¥12.6 billion.
As part of its financial strategy, the company plans to increase receivables securitization to 3 to 4 transactions per year and carry out securitization of approximately ¥2.6 billion from late August to early September. Receivables are expected to be reduced by approximately 30% through securitization, improving the equity ratio. Losses on the sale of bonds associated with the securitization will be recorded as non-operating expenses in the third quarter, and multiple transactions are planned for the second half.
The company decided to pay its first dividend after five years. Net profit for the period is expected to be ¥650 million, and the payout ratio was raised. The shareholder benefit program was changed to add digital gift cards, remove the requirement to hold shares continuously for one year, and provide benefits twice a year.
The forward PER was cited at 13.6 times as an indication that the shares were undervalued. The company outlined a policy of enhancing its valuation through greater recognition as a growth stock and improvements in its financial position.