Hennge (4475) Q4 2026 earnings summary

Executive summary

• FY2026 net sales rose 17.0% YoY to ¥12,782M; operating income increased 24.9% to ¥2,239M and net income rose 31.5% to ¥1,786M.

• HENNGE One drove growth, with sales up 17.7% to ¥12,072M and ARR up 17.2% to ¥13,049M.

Financial highlights

• Gross profit rose 16.7% to ¥11,026M; SG&A increased 14.8% to ¥8,787M.

• FY2026 operating income, ordinary income and net income exceeded forecasts; net sales reached 99.6% of forecast.

• FY2026 advertising expenses were ~¥200M above the initial plan, reflecting expanded marketing and branding for new services.

Outlook and guidance

• FY2027 forecast: net sales ¥15,232M (+19.2%), operating income ¥2,631M (+17.5%) and net income ¥1,836M (+2.8%).

• FY2027 HENNGE One sales are forecast at ¥14,492M (+20.0%); professional services and others at ¥740M (+4.2%).

• FY2027 targets include HENNGE One ARR growth of at least 25% and net headcount growth of 45 or more.

• The ¥20B ARR target moved forward to FY2028, alongside a 20%–25% operating-margin target; longer-term ambition exceeds ¥100B ARR by FY2035–FY2037.