Simplex (4373) Q3 2026 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2025, reached ¥42.5bn, up 24.7% YoY, marking record highs in revenue, gross profit, orders received, and order backlog.

• Operating profit rose 54.4% YoY to ¥10.8bn, with profit attributable to owners up 55.7% to ¥7.3bn.

• Growth investments in recruitment and R&D, especially in generative AI and web3, were made while revenue and operating profit outpaced previous forecasts.

• Strong sales in System Integration and Operation Service, along with robust contract wins in Strategy/DX Consulting, drove growth.

• Full-year forecasts for revenue and operating profit were revised upward, and a share buyback of up to ¥5.0bn was announced to enhance capital efficiency.

Financial highlights

• 9M FY3/26 revenue: ¥42.5bn (+24.7% YoY); operating profit: ¥10.8bn (+54.4% YoY); profit attributable to owners: ¥7.3bn (+55.7% YoY).

• Gross profit increased 33.9% YoY to ¥18.6bn, with gross margin improving to 43.7% (+3.0p YoY).

• Orders received in Q3 reached ¥15.8bn (+46.8% YoY); order backlog at Q3-end hit ¥23.5bn (+16.9% YoY).

• Basic EPS for the period was ¥32.03, and diluted EPS was ¥31.11, reflecting a 4-for-1 stock split.

• Total assets as of December 31, 2025, were ¥88.1bn, up ¥9.1bn from March 31, 2025.

Outlook and guidance

• FY3/26 revenue forecast raised to ¥58.0bn (+22.4% YoY); operating profit forecast to ¥14.3bn (+32.4% YoY); profit attributable to owners forecast at ¥9.7bn (+24.2% YoY).

• Basic EPS forecast is ¥42.14–¥42.56, adjusted for the stock split.

• Year-end dividend forecast is ¥18.00 per share, reflecting the stock split.

• Revenue progress as of Q3-end exceeded 95% of the full-year forecast, supporting high confidence in achieving targets.

• ROE for FY3/26 projected at 19.4%, surpassing the MTBP 2027 target a year ahead.