Notice Regarding Consolidated Financial Results for the Fiscal Year Ending December 2025, Earnings Forecast, and Differences from Previous Fiscal Year Results

Overview of Financial Results

For the fiscal year ending December 2025, consolidated revenue reached ¥19,029 million, representing a 26.4% increase compared to the previous year. Operating income was a loss of ¥81 million, but significantly improved from the prior year’s loss of ¥580 million. Adjusted operating income turned positive at ¥403 million. Ordinary income also improved to a loss of ¥119 million from ¥623 million the year before. Net income attributable to owners of parent was ¥437 million, marking a substantial turnaround from a loss of ¥1,552 million in the previous fiscal year. Net income per share improved to ¥7.88 from a loss of ¥28.07 per share a year earlier.

Reasons for Earnings Variance and Future Outlook

The increase in revenue was driven by expansion of spot revenue through increased installation of subscription-based cameras for enterprise customers, the accumulation of monthly subscription fees associated with a higher number of cameras, and increased recurring revenue from the expanded adoption of AI solutions. On the profitability front, efficient investment and stringent cost control contributed to the rise in adjusted operating income. Additionally, special gains from NEDO-related commission income and improved recoverability of deferred tax assets were recognized, resulting in a significant increase in net income. These factors account for the variance between the initial earnings forecast and actual results.