Logizard Co (4391) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥561.5 million, up 2.7% year-over-year, but operating profit fell 37.7% to ¥71.9 million and net profit dropped 39.4% to ¥51.9 million due to upfront investments aligned with the mid-term management plan.

• Cloud services grew 8.0% in sales, while development/implementation and equipment sales declined 11.6% and 26.0%, respectively.

• Monthly Recurring Revenue (MRR) rose 7.5% year-over-year to ¥151 million.

• The company is executing its first year of a mid-term plan focused on high-touch services, customer-centric strategies, B2B initiatives, and organizational reform.

Financial highlights

• Revenue: ¥561.5 million (+2.7% year-over-year); operating profit: ¥71.9 million (-37.7% year-over-year); net profit: ¥51.9 million (-39.4% year-over-year).

• Cloud service revenue: ¥453.8 million (+8.0% year-over-year); MRR: ¥151 million (+7.5% year-over-year).

• Gross margin: 55.1% (down 3.8 percentage points year-over-year due to increased hiring costs).

• SG&A expenses increased 29.6% year-over-year, mainly from hiring and R&D.

• Gross profit increased to ¥309.3 million from ¥298.5 million year-over-year.

Outlook and guidance

• FY2028 targets: revenue ¥3.11 billion (+43.0% vs. FY2025), operating profit ¥530 million (+31.8%), MRR ¥209 million (+40.5%).

• Full-year guidance remains unchanged: revenue ¥2,439 million, operating profit ¥355 million, net profit ¥258 million, and EPS ¥80.35.

• No revision to dividend forecast; annual dividend expected at ¥18 per share.

• Continued focus on BtoB market expansion, new service launches, and ongoing investment in product development and talent.