#SakuraInternet

Sakura Internet announced its first quarter financial results for FY2027. Revenue was 7,492 billion yen, net loss was ▲318,980 thousand yen. Assets totaled 82,451,076 thousand yen, showing an increase compared to the same period last year. The report highlights growth in cloud business revenue and asset expansion.

Revenue for the first quarter of the fiscal year ending March 2027 reached 11,134 million yen (+48.6% YoY), operating profit was 1,230 million yen (+66.7% YoY), marking all-time highs. The increase in sales and profits indicates strong performance for this period.

Sakura Internet has revised its full-year consolidated earnings forecast for the fiscal year ending March 2027 upward to net sales of 45,500 million yen (+1.1% YoY), operating income of 2,500 million yen (+66.7%), and net income attributable to owners of the parent of 1,500 million yen (+76.5%), expecting growth driven by strong GPU infrastructure and cloud services.

Sakura Internet has invested 26 billion yen in GPU servers for generative AI, with full-year sales forecasted at 45,500 million yen and net income at 1,500 million yen in 2026.

Sakura Internet resolved to dispose of 22,185 ordinary shares at 3,190 yen per share on July 8, 2026, as part of an employee stock compensation system, granting shares to directors.

Sakura Internet Inc. plans to record a maximum of 2,587 million yen of extraordinary income and loss in the first quarter of the fiscal year ending March 2027. Subsidies from the Ministry of Economy, Trade and Industry will be recognized, including an amount for fixed asset impairment loss and national treasury subsidy income, with minimal impact on business performance.

Sakura Internet has announced an upcoming change in the executive team as of June 23, 2026, with plans to appoint new directors and auditors. This aims to enhance management sophistication and organizational strength.

Sakura Internet Inc. has secured a large order worth approximately 3.8 billion yen from a national institution for generative AI and plans to deliver by March 2027.

Sakura Internet has commenced discussions with Microsoft Japan for joint development of a solution enabling the use of its AI computing infrastructure with multiple GPUs on Microsoft Azure, aiming to expand AI infrastructure options in Japan.

As of March 18, 2026, Sojitz Corporation was removed from other affiliated companies, with the number of shares held reduced to 5,963,300 shares (voting rights ratio 14.80%). There is no impact on consolidated financial results.

Revised consolidated earnings forecast for the fiscal year ending March 2026: net sales at 35,200 million yen (down 3.6% from previous forecast), operating loss of 500 million yen (decline from previous forecast), and net income attributable to owners of parent at 130 million yen (down 35.0% from previous forecast).

Plan to record up to 9,619 million yen in government subsidy income (extraordinary gains) and an equal amount of fixed asset impairment loss (extraordinary losses) in the fourth quarter of the fiscal year ending March 2026.