Global Security Experts (4417) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 net sales and profits, with net sales rising 23.4% year-over-year to ¥2,237.8 million, driven by strong demand for cybersecurity services and training amid rising cyber threats and regulatory focus in Japan.

• Operating income increased 26.4% year-over-year to ¥352.7 million, with all business domains and service lines experiencing growth despite higher personnel expenses.

• Announced a medium-term business plan targeting 25% annual net sales growth and higher operating margins.

• Set a dividend payout ratio forecast of 35% for FY ending March 2026, continuing cumulative dividends policy.

• Ordinary income grew 28.0% year-over-year to ¥319.4 million, while net income attributable to owners of parent reached ¥200.0 million, up 25.1% year-over-year, marking a record first-quarter result.

Financial highlights

• Q1 FY2026 net sales: ¥2,237.8 million (+23.4% YoY); operating income: ¥352.7 million (+26.4% YoY); net income: ¥200 million (+25.1% YoY).

• Gross profit for the quarter was ¥748.1 million, up from ¥585.3 million in the prior year period; gross profit margin improved to 33.4% (+1.1pt YoY).

• Comprehensive income for the quarter was ¥503.5 million, a 142.7% increase year-over-year.

• Total assets as of June 30, 2025, were ¥8,276.8 million, up from ¥8,141.2 million at March 31, 2025.

• Net assets increased to ¥3,426.1 million from ¥3,078.9 million at the previous fiscal year-end.

Outlook and guidance

• FY2026 forecast: net sales ¥11,000 million (+25% YoY), operating income ¥2,200 million (+36.2% YoY), net income ¥1,417 million (+40.3% YoY), EPS ¥94.34.

• Progress rates for Q1: net sales 20.3%, operating income 16.0%, in line with historical trends.

• No changes to previously announced performance or dividend forecasts.

• All business segments expected to increase revenue year-over-year.