FY2026 September 1Q Financial Results Presentation Materials

Overview of Financial Performance

In the first quarter of FY2026 September, MTI Ltd. recorded net sales of JPY 7,773 million (+6.9% YoY), operating income of JPY 835 million (+16.4% YoY), and quarterly net income attributable to owners of parent of JPY 603 million (+2.4% YoY), achieving revenue and profit growth. Cost of goods sold amounted to JPY 2,064 million (+10.9% YoY), and selling, general and administrative expenses were JPY 4,872 million (+3.8% YoY), with profit margins improving to an operating margin of 10.8% and ordinary income margin of 11.9%. The content business's monthly paid subscribers totaled 3.23 million, a decrease of 10,000 from the previous quarter, while the number of stores implementing the cloud pharmacy system steadily expanded to 4,166. The number of schools implementing the full cloud-based school affairs support system reached 1,067, with new contracts for the next fiscal year progressing smoothly.

Segment Performance and Future Initiatives

By segment, the content business maintained a stable number of paid subscribers, while the healthcare business saw revenue growth supported by steady adoption of the cloud pharmacy system. The school DX business also shows expansion trends; however, operating income remained flat due to system development costs for pharmacy DX and child-rearing DX. Advertising expenses slightly decreased, outsourcing and depreciation costs remained flat, resulting in only a slight increase in total SG&A expenses. Going forward, the company plans to further expand the cloud pharmacy system and strengthen the mother-child health handbook app, child-rearing DX, and school DX businesses.