Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

Net sales for the cumulative Q3 period of the fiscal year ending March 2026 amounted to JPY 12,762 million (up 5.8% YoY). Operating income was JPY 1,908 million (down 9.4% YoY), impacted by an increase in development personnel expenses and outsourcing costs (up 13.4% YoY). Ordinary income was JPY 1,923 million (down 10.4% YoY), and net income attributable to owners of parent was JPY 1,225 million (down 15.1% YoY). Cloud service sales grew by 14.7%, with the number of paid contracts and ARR increasing by 23.9% and 14.1% YoY respectively, clearly demonstrating growth in the recurring revenue model. Meanwhile, sales of maintenance services and traditional software products declined.

Financial Position and Outlook

Total assets stood at JPY 33,481 million and net assets at JPY 18,719 million, both down compared to the previous fiscal year, but the equity ratio improved to 55.4% from 54.5% in the prior year. There were no significant changes in the number of shares outstanding or treasury shares. There is no revision to the consolidated earnings forecast for the fiscal year ending March 2026, with expected net sales of JPY 17,539 million (up 8.0% YoY), operating income of JPY 2,543 million (down 3.6% YoY), and net income attributable to owners of parent of JPY 1,649 million (down 5.3% YoY). Based on the medium-term management plan, the company aims for growth through accelerating cloud shift and expanding the new service "PCA Arch."