Digital Garage (4819) Q3 2026 earnings summary

Executive summary

• Consolidated profit before tax reached ¥4.6B, rebounding from a prior year loss, supported by organic growth in core businesses and strategic alliances.

• Revenue for the nine months ended December 31, 2025, rose 17.1% year-over-year to ¥32,284 million, with net profit attributable to owners at ¥3,883 million.

• Payment transaction volume grew 13.5% year-over-year, with underlying growth at 12% excluding one-time factors.

• Strategic alliances and new business launches, such as the NESTA payment platform and Cloud Pay, are driving long-term growth.

Financial highlights

• Consolidated profit before tax improved from -¥7.6B to ¥4.6B year-over-year.

• PS segment profit before tax rose 4.7% to ¥6.7B; LTI segment profit before tax increased 25.5% to ¥2.0B.

• GII segment swung from a ¥6.5B loss to ¥0.6B profit, reflecting recovery from prior valuation losses.

• Basic business revenue up 8.9% year-over-year; recurring business revenue increased to ¥25,856 million.

• Basic earnings per share improved to ¥84.63 from a loss of ¥112.82 year-over-year.

Outlook and guidance

• Focus remains on scaling PS segment and reducing GII volatility, with a 5-year CAGR target of 20% for pre-tax profit.

• Payment transaction volume expected to accelerate in 4Q as KDDI Group integration scales.

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

• Progressive dividend policy and continued share buybacks planned, leveraging investment business income.