Smaregi (4431) Q2 2026 earnings summary

Executive summary

• Achieved 2nd Medium-Term Management Plan ARR target of ¥9.94 billion six months ahead of schedule, with strong growth in subscription and payment services.

• Q2 FY2026 saw record highs in ARR, net sales, and operating profit, with net sales for the six months ended October 31, 2025, at ¥6,264 million and operating profit at ¥1,321 million.

• Profit attributable to owners of parent was ¥887 million, with basic earnings per share of ¥46.10.

• Aggressive sales and marketing investments continued, supporting expansion in fee-paying stores and cross-selling initiatives.

• Comprehensive income matched net profit at ¥887 million for the period.

Financial highlights

• Q2 FY2026 net sales rose 21.6% YoY to ¥6.264 billion; operating profit increased 11.7% YoY to ¥1.321 billion.

• Gross profit expanded 31.6% YoY to ¥4,101 million, offsetting a 43.7% YoY rise in SG&A expenses.

• Profit attributable to owners of parent grew 13.7% YoY to ¥887 million.

• Cash and deposits at ¥6.8 billion; equity ratio at 67.3%.

• Total assets increased to ¥12,287 million as of October 31, 2025.

Outlook and guidance

• FY2026 full-year consolidated net sales forecast at ¥13.859 billion (+25.2% YoY), operating profit at ¥2.954 billion (+24.1% YoY), and profit per share at ¥104.69.

• Dividend per share planned to increase from ¥15.00 to ¥20.00.

• 3rd Medium-Term Management Plan (FY2027–FY2029) targets 25–30% ARR CAGR, fintech expansion, and continued M&A.

• Profit attributable to owners of parent forecast at ¥2,016 million.