Encourage Technologies Co., Ltd. Notice of Financial Summary for the Second Quarter (Interim) [Japanese GAAP] (Non-consolidated)

Overview of Results

Encourage Technologies Co., Ltd. released its financial summary for the second quarter of the fiscal year ending March 2027 (Japanese GAAP, non-consolidated). Revenue was 1,223,309 thousand yen, down 5.0% year-on-year; operating income was 103,430 thousand yen, down 25.0%; ordinary income was 110,461 thousand yen, down 21.9%; and interim net income was 74,331 thousand yen, down 23.1%, showing notable declines in profitability year-on-year. Contributions from cloud services have expanded, and further contributions are expected from offerings such as ESS AdminONE Cloud. Meanwhile, declines in license sales and revisions to maintenance and support contract structures have had an impact.

Outlook and Dividends

Full-year forecasts are maintained at revenue 2,800 hundred million yen, operating income 320 hundred million yen, ordinary income 326 hundred million yen, net income 223 hundred million yen, and basic earnings per share of 33.47 yen. The most recent dividend forecast is 27 yen per share, with the annual dividend including the year-end payment expected to be 27 yen. Interim progress is proceeding as planned; although domestic and international economic risks remain, the company is promoting growth strategies toward the next fiscal period through releases of new products and services.