Logizard Co (4391) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended December 31, 2025, increased 4.6% year-over-year to ¥1,157 million, while operating profit fell 33.4% to ¥174 million and net profit dropped 35.7% to ¥125 million, tracking close to plan.

• Achieved record-high Monthly Recurring Revenue (MRR) of ¥159 million, up 10.3% year-over-year, with strong progress toward annual targets.

• Significant investments in personnel and security led to higher costs, impacting profit margins.

• The company is in the first year of its new mid-term plan, focusing on high-touch services, customer-centric strategies, B2B initiatives, and organizational reform.

Financial highlights

• Cloud service revenue grew 8.5% year-over-year to ¥921 million, now 79.6% of total sales, driven by new customer acquisitions.

• Operating profit margin declined to 15.1% from 23.7% year-over-year due to increased SG&A and R&D expenses.

• Cash and cash equivalents at period-end were ¥1,590 million, down from ¥1,707 million at the previous year-end.

• Total assets stood at ¥2,573 million, with net assets at ¥2,275 million and an equity ratio of 88.4%.

• Gross margin for cloud services recovered to 65.7% after a temporary dip from new hires.

Outlook and guidance

• On track to achieve full-year targets: revenue ¥2,439 million, operating profit ¥355 million, net profit ¥258 million.

• Full-year revenue is forecast at ¥2,439 million, up 12.1% year-over-year, with net profit projected at ¥258 million, up 8.6%.

• 2028 targets: revenue ¥3,110 million (+43% vs. 2025), operating profit ¥530 million (+31.8%), MRR ¥209 million (+40.5%).

• No changes have been made to the previously announced full-year guidance.

• Continued focus on BtoB market expansion and new service launches.