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.

• Profit attributable to owners increased 28.7% year-over-year to JPY 1.36B, with net income margin improving to 14.5%.

• HENNGE One expanded its customer base to 3,881 companies and 3.15M users, with ARR up 16.5% year-over-year to JPY 12.52B.

• Significant marketing and branding activities were conducted, including the launch of new services and participation in major events.

Financial highlights

• Gross profit for the nine months ended June 30, 2026, was JPY 8.11B, up from JPY 6.91B year-over-year, 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.

• Basic earnings per share increased to JPY 43.44 from JPY 32.95 year-over-year.

Outlook and guidance

• Full-year net sales forecast for fiscal year ending September 30, 2026, is JPY 12.83B, up 17.5% year-over-year.

• Operating profit is projected at JPY 2.06B, with profit attributable to owners expected at JPY 1.60B.

• 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.

• Advertising expenses are expected to exceed the full-year forecast due to additional branding investments.