Institution for a Global Society (4265) investor relations material

Executive summary

• Q1 FY2027 revenue fell 34.1% YoY to ¥88.811M; operating loss widened to ¥86.972M from ¥51.685M and net loss to ¥90.020M from ¥50.025M, though operating-loss progress was described as broadly in line with plan.

• Revenue pressure reflected a lost HR renewal, orders shifted to H2, education subsidy expiration, and early-stage Global Platform operations.

Financial highlights

• Revenue was ¥88.811M, down 34.1% YoY; gross profit was ¥38.278M, down 37.3%, and cost of sales was ¥50.533M, down 31.5%.

• SG&A rose 11.1% YoY to ¥125.250M, including R&D expense of ¥17.038M, up 144.9%, and advertising and promotion expense of ¥7.583M, up 59.1%.

• Operating loss was ¥86.972M, ordinary loss ¥89.5M, and net loss attributable to owners of the parent ¥90.020M; EPS was a loss of ¥18.88.

• Non-operating expenses included a ¥2.4M crypto-asset valuation loss.

Outlook and guidance

• FY2027 guidance remains unchanged: revenue ¥850M, operating income ¥10M, ordinary income ¥9M, net income ¥7M, and EPS ¥1.56.

• H1 forecast is revenue ¥284M, down 10.8% YoY, with operating and ordinary losses of ¥137M each and net loss of ¥139M.

• H2 recovery is expected from delayed orders and new business; Global Platform contributions depend on converting discussions into contracted, recognized revenue. Education subsidy expiration was factored into the plan.

• FY2028 target: operating profit of ¥348M and 15.8% operating margin; ¥10B market-capitalization goal is aspirational and depends on earnings growth and market valuation.