Digital Garage (4819) Q2 2026 earnings summary

Executive summary

• Consolidated profit before tax reached ¥1,416 million, rebounding from a prior-year non-cash valuation loss on investees, with strong profit growth in the PS and LTI segments and easier YoY comps for GII.

• Revenue for the six months ended September 30, 2025, rose 13.8% YoY to ¥20,013 million.

• Payment transaction volume grew 13.8% YoY, surpassing ¥8T TTM for the first time, despite a slowdown in inbound consumption.

• Profit attributable to owners of parent was ¥1,841 million, compared to a loss of ¥8,582 million in the same period last year.

• Strategic alliances, especially with Resona Group and KDDI, are deepening, with new business launches and expanded payment solutions.

Financial highlights

• Consolidated profit before tax improved by ¥13.9B YoY, returning to profitability.

• Recurring business revenue increased to ¥17,029 million from ¥14,884 million YoY.

• PS segment profit before tax rose 9.8% YoY; LTI segment up 25.1% YoY; GII investment business income at ¥1.5B.

• Basic business profit up 26% YoY, driven by PS segment expansion and LTI new business revenue.

• Payment transaction volume up 13.7% YoY; online payments +9.1%, offline +22.6%.

Outlook and guidance

• Platform Solutions segment is expected to achieve over 20% profit before tax growth for the full year, driven by expanding payment business and strategic partnerships.

• PS segment expects annual payment transaction volume to exceed ¥10T, driven by large-scale projects and new partnerships.

• Profits are expected to cluster in 2H due to upfront investments in system R&D and new business launches.

• Progressive dividend policy with a 30% payout ratio target and additional shareholder returns from investment business income.

• No consolidated financial results forecast disclosed due to difficulty in estimating fair value of startup investments.