CHANGE Holdings (3962) Q1 2026 earnings summary

Executive summary

• Revenue rose 21.7% year-over-year to ¥9,908 million, driven by new consolidations and strong performance in core business segments.

• Operating profit fell 71.1% year-over-year to ¥678 million, mainly due to the absence of a prior-year one-off gain and increased SG&A expenses.

• Profit attributable to owners of parent dropped 66.2% year-over-year to ¥469 million.

• Publitech Business saw steady growth in hometown tax donations and SaaS adoption among local governments.

• NEW-IT Transformation Business benefited from M&A activity and increased demand for DX and human capital management services.

Financial highlights

• EBITDA decreased 4.4% year-over-year to ¥1,288 million; EBITDA margin declined to 13.0%.

• EPS dropped 65.2% year-over-year to ¥6.74.

• Gross profit increased to ¥4,526 million from ¥3,251 million year-over-year.

• SG&A expenses rose to ¥3,941 million from ¥2,497 million year-over-year.

• Cash and cash equivalents at quarter-end were ¥27,873 million, down ¥2,312 million from the previous fiscal year-end.

Outlook and guidance

• Full-year revenue forecast is ¥55,000 million (+18.6% year-over-year), with operating profit expected to rise 3.6% to ¥14,000 million.

• EPS forecasted at ¥113.60 (+5.7% year-over-year); ROE expected at 17.8%.

• Dividend per share to increase by ¥2.19 to ¥23.

• No change to previously announced financial forecasts as of May 15, 2025.

• Q2 expected to show significant progress due to timing of Hometown tax payments.