Rakus (3923) Q4 2026 earnings summary

Executive summary

• Net sales rose 23.3% year-over-year to ¥60,286M, with operating profit up 70.2% to ¥17,345M and all five-year mid-term targets achieved.

• Cloud Business drove growth, especially in Raku Raku Seisan and Raku Raku Kintai, while IT Outsourcing Business contributed before its divestiture.

• Generative AI risk concerns have not materialized; LTV improved significantly.

• The company surpassed ¥10B in profit attributable to owners and ¥20B in net assets.

• IT Outsourcing Business transfer completed April 1, 2026; will be excluded from FY2027.3 consolidation.

Financial highlights

• FY2026.3 net sales: ¥60,286M (+23.3% YoY); operating profit: ¥17,345M (+70.2% YoY); OP margin: 28.8% (+7.9pt YoY).

• EBITDA: ¥18,704M (+64.8% YoY); profit attributable to owners: ¥13,293M (+66.1% YoY).

• Gross profit increased to ¥45,420M (up from ¥36,310M YoY).

• Q4 OP margin remained above 30% despite a slight sequential decline due to higher SG&A.

• Extraordinary income of ¥1,491M from sale of Kaonavi shares in Q1.

Outlook and guidance

• FY2027.3 sales expected to be flat YoY due to IT Outsourcing Business transfer; Cloud Business to drive growth.

• FY2027.3 guidance: net sales ¥59,700M, operating profit ¥20,500M (+18.2% YoY), profit attributable to owners ¥25,200M (+89.6% YoY), EPS ¥71.16 (+92.8% YoY).

• Cloud Business organic growth expected at 15.3% in net sales and 27.9% in segment profit.

• Extraordinary income from business transfer to boost profit and EPS.

• Medium-term plan targets "Rule of 50" (sales growth rate + operating margin ≥ 50%) and ROE of 30%+.