Smaregi (4431) Q3 2026 earnings summary

Executive summary

• Achieved record highs in net sales, operating profit, and ARR for Q3 FY2026, with net sales for the nine months ended January 31, 2026, rising 22.1% YoY to ¥9,615 million, operating profit up 22.8% to ¥2,229 million, and profit attributable to owners up 25.2% to ¥1,530 million.

• Accelerated shift from hardware sales to subscription revenue, driving recurring income and margin expansion.

• Integration of Netshop Supporters Co., Ltd. completed, with full absorption merger scheduled for May 2026.

• Preparing for transition to the Prime Market, having met all listing criteria.

• Comprehensive income for the period reached ¥1,530 million, a 25.2% increase YoY.

Financial highlights

• Q3 FY2026 net sales: ¥9,615 million (+22.1% YoY); operating profit: ¥2,229 million (+22.8% YoY); profit attributable to owners: ¥1,530 million (+25.2% YoY).

• Gross profit up 31.4% YoY to ¥6,356 million; SG&A expenses increased 36.5% YoY, but SG&A ratio improved QoQ.

• ARR reached ¥10.43 billion (+27.3% YoY); subscription sales ratio at 77.2%.

• Cash and deposits: ¥7,209 million (+26.7% YoY); equity ratio: 69.2%.

• Basic earnings per share for the nine months were ¥79.37, compared to ¥63.54 in the prior year.

Outlook and guidance

• FY2026 full-year net sales forecast: ¥13,149 million (+18.8% YoY); operating profit: ¥2,954 million (+24.1% YoY); profit: ¥2,016 million (+22.6% YoY); basic EPS expected at ¥104.69.

• Dividend per share planned at ¥20.00 (up from ¥15.00 prior year).

• Continued focus on S&M investment, targeting operating margin in the low 20% range.