Hennge (4475) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 FY2026 reached JPY 9.39B, up 17.1% year-over-year, with HENNGE One as the primary growth driver, contributing 94.4% of total sales.

• Operating income rose 17.4% year-over-year to JPY 1.85B, maintaining a 19.7% margin, and profit attributable to owners increased 28.7% to JPY 1.36B.

• Recurring net sales and gross profit for the main business grew steadily year-on-year, with a high gross profit margin maintained.

• Application submitted for a market segment change to the Tokyo Stock Exchange Prime Market in June 2026.

• Comprehensive income increased 24.7% year-over-year to JPY 1.32B for the nine-month period.

Financial highlights

• Gross profit increased 17.4% year-over-year to JPY 8.11B, with gross margin stable at 86.4%.

• SG&A expenses rose 17.4% year-over-year, driven by higher personnel and advertising costs.

• Operating expenses for Q3 reached JPY 6.26B, with advertising expenses up 20.1% year-over-year.

• Average monthly churn rate for HENNGE One improved to 0.30%, supporting a theoretical average contract period of over 25 years.

• ARR for the quarter increased significantly, driven by growth in contracted users, reaching JPY 12.52B.

Outlook and guidance

• Full-year net sales forecast for FY2026 is JPY 12.83B, up 17.5% year-over-year, with operating profit projected at JPY 2.06B.

• Profit attributable to owners of parent expected at JPY 1.60B, up 17.4% year-over-year.

• Basic earnings per share for the full year is forecast at JPY 50.06.

• Annual dividend forecast is JPY 6.00 per share, up from JPY 5.00 in the previous year.

• Continued focus on strengthening sales structure, accelerating customer acquisition, and enhancing service value to achieve JPY 20B ARR by FY2029.