ELEMENTS (5246) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of ¥1,530 million, up 49% YoY, with operating profit, EBITDA and net income turning positive.

• FY2026 forecasts were raised to the upper end of prior ranges, including revenue of ¥5,700 million and operating profit of ¥400 million.

Financial highlights

• Q3 revenue was ¥1,530 million (+49% YoY); gross profit was ¥1,196 million (+59%) and gross margin was 78.2%.

• Q3 operating profit was ¥130 million versus a ¥153 million loss; EBITDA was ¥341 million versus a ¥20 million loss; net income was ¥113 million versus a ¥171 million loss.

• Nine-month revenue was ¥4,329.4 million (+59.1% YoY), gross profit ¥3,373.2 million, EBITDA ¥995.0 million, operating income ¥457.9 million and parent-attributable net income ¥410.7 million.

• Nine-month ordinary income was ¥413.7 million versus an ordinary loss of ¥179.1 million; total comprehensive income was ¥414.4 million versus a loss of ¥730.9 million.

Outlook and guidance

• FY2026 guidance: revenue ¥5,700 million, gross profit ¥4,450 million, SG&A ¥4,050 million, EBITDA ¥1,200 million, operating income ¥400 million, ordinary income ¥300 million and net income ¥300 million.

• Revised revenue, EBITDA, operating income and net income forecasts are at the top of prior ranges; forecast EPS is ¥11.03 versus the previous ¥7.34–¥11.01 estimate.

• FY2026 is positioned as an investment and preparation period for medium- to long-term earnings growth; targets include 30% sales growth and stronger operating cash flow.

• Q4 may include performance-linked stock compensation and further product investment to support medium- to long-term profit growth.