Cross Marketing Group (3675) Q1 2026 earnings summary

Executive summary

• FY26 Q1 net sales were ¥6,708 million, down 0.8% YoY; operating income was ¥286 million, down 19.5%.

• Digital Marketing grew 5%, while Research & Insights declined 6%, mainly due to overseas weakness.

• Full-year guidance remains unchanged, with results weighted toward H2; investment in high-growth areas and AI adoption is accelerating.

Financial highlights

• Gross profit was ¥2.47bn, down 2%, and SG&A was ¥2.19bn, up 1%; EBITDA was ¥0.43bn, down 19%.

• Ordinary income was ¥290 million, down 1.9%; net income attributable to owners of parent was ¥122 million, down 14.2%, with EPS of ¥6.29 versus ¥7.41.

• Comprehensive income rose 539.7% to ¥156 million.

• Total assets were ¥16,057 million and net assets were ¥8,118 million as of September 30, 2025.

• Gross margin was 36.8%, down 0.5 percentage points YoY; operating margin was 4.3%, down 1.0 point.

Outlook and guidance

• FY26 guidance is unchanged: net sales of ¥32,000 million, up 10.7%, and operating income of ¥2,800 million, up 11.0%; H2 is expected to contribute more heavily.

• Forecast ordinary profit is ¥2.7bn; net income attributable to owners of parent is ¥1,550 million, up 14.3%.

• Full-year basic EPS is forecast at ¥81.69.