Money Forward (3994) investor relations material

Executive summary

• Consolidated net sales for Q1 FY11/26 reached ¥14.67bn, up 42% YoY excluding deconsolidation impacts, with SaaS ARR up 34.2% to ¥44.3bn and the Business segment driving growth at +59% YoY, led by the card business and pricing revisions.

• Adjusted EBITDA hit a record ¥2.81bn (margin 19.2%), up 136.6% YoY, and operating income was ¥170mn, both marking record highs.

• Profit attributable to owners of parent was ¥1.83bn, reversing a loss in the prior year, with comprehensive income at ¥1.85bn.

• Corporate ARR in the Business segment accelerated 37% YoY, with SMB ARR up 32% and midmarket ARR up 42%.

• Launched "Money Forward AI Vision 2026" and announced the upcoming release of Money Forward AI Cowork in July 2026.

Financial highlights

• Business segment net sales rose 59% YoY to ¥12.38bn, with transaction/flow revenue (mainly card business) up over 200% YoY.

• Gross profit for the quarter was ¥10.65bn, with gross profit margin for back-office SaaS business reaching 88%.

• Corporate ARPA increased 12.9% YoY; number of corporate paying customers rose 21.2% YoY, with a net increase of +9,918 in Q1.

• Extraordinary income of ¥2.69bn, mainly from gain on sale of investment securities, contributed to profit before tax of ¥2.28bn.

• Operating profit improved to ¥168mn from a loss of ¥580mn in the prior year.

Outlook and guidance

• Full-year SaaS ARR guidance revised upward to ¥49.7–52.5bn (+21.7% to +27.8% YoY), reflecting inclusion of Fintech ARR.

• Full-year net sales forecast is ¥53.4–57.55bn, up 6.1–14.3% YoY; adjusted EBITDA guidance is ¥8–10bn, up 61.2–101.5% YoY.

• Net income guidance revised upward following extraordinary income in Q1; profit attributable to owners of parent is forecasted between a loss of ¥2.5bn and a profit of ¥0.5bn.

• Medium-term targets: FY28 net sales ¥90bn+, EBITDA ¥27bn+, business segment EBITDA margin 30%+.

• Advertising expenses to sales ratio expected at 9.5–11.5%; personnel and subcontract expenses to sales ratio at 57.0–61.0%.