Digital Garage (4819) Q4 2026 earnings summary

Executive summary

• Achieved strong growth in core payment business, with PS segment profit up 22% year-over-year, meeting full-year guidance targets.

• Revenue increased by 7.0% year-over-year to ¥40,971 million for the fiscal year ended March 31, 2026, with a return to profitability after a prior year loss.

• Profit before tax was ¥2,966 million, reversing a loss of ¥10,216 million in the previous year.

• Payment transaction volume reached a record ¥7.5T, up 21% YoY, driven by strategic alliances and adoption by Square.

• LTI segment saw record performance at Kakaku.com, though overall profit declined due to software asset impairment.

Financial highlights

• Consolidated profit before tax for FY25.3 was negatively impacted by a valuation loss on Blockstream, resulting in a consolidated loss.

• PS segment profit rose to ¥8,757M (+22.2% YoY), LTI segment profit at ¥969M (-32.5% YoY), and GII segment loss of ¥8,946M.

• Basic business revenue grew 21.6% YoY to ¥37,313M, and basic business profit increased 3.6% YoY to ¥4,364M.

• Recurring business revenue rose to ¥35,187 million from ¥32,201 million year-over-year.

• Dividend per share for the year was ¥47.00, with a payout ratio of 168.1%.

Outlook and guidance

• FY26.3 PS segment profit expected to grow 20% YoY, with payment transaction volume forecast to exceed ¥10T.

• Upfront investments in system R&D and BNPL business anticipated in 1H FY26.3, with profits clustering in 2H.

• No consolidated financial forecast for the fiscal year ending March 31, 2027, due to difficulty in estimating fair value of startup investments.

• Dividend policy remains progressive, with a 5-year total dividend target of ¥10B and payout ratio of 30% of base business cash flow.