Smaregi (4431) Q1 2027 earnings summary

Executive summary

• Achieved record highs in ARR, net sales, and operating profit for FY2027 1Q, driven by recurring revenue and payment business expansion.

• Net sales for the three months ended July 31, 2026, rose 19.7% year-over-year to ¥3,608 million.

• Operating profit surged 73.3% year-over-year to ¥1,027 million, with improved gross margin and lower SG&A ratio.

• Profit attributable to owners of parent grew 77.4% year-over-year to ¥683 million.

• Number of employees increased by 9.3% YoY to 483, reflecting ongoing hiring and integration of Netshop Supporters.

Financial highlights

• Gross profit for the quarter was ¥2,478 million, up from ¥1,984 million year-over-year.

• Operating profit margin rose to 28.5% (+8.8pt YoY), a quarterly record.

• Recurring revenue ratio reached 79.4%; ARR up 22.9% YoY to ¥11.58 billion.

• Cash and deposits totaled ¥7,660 million (+39.4% YoY); equity ratio maintained at 71.0%.

• Basic earnings per share increased to ¥35.50 from ¥20.02 year-over-year.

Outlook and guidance

• Full-year net sales forecast for fiscal year ending April 30, 2027, is ¥15,387 million, a 15.3% increase year-over-year.

• Operating profit and ordinary profit are both forecast at ¥4,004 million, up over 24% year-over-year.

• FY2027 ARR target set at ¥14.2 billion (+28.4% YoY), aiming for a 25%+ CAGR over three years.

• Annual dividend per share forecast is ¥29.00, up from ¥24.00 in the previous year.

• Long-term vision targets ARR of ¥30 billion by FY2031.