Smaregi (4431) Q4 2026 earnings summary

Executive summary

• Achieved record highs in net sales (¥13.345B, +20.6% YoY), operating profit (¥3.216B, +35.2% YoY), and profit attributable to owners of parent (¥2.228B, +35.5% YoY), marking 13 consecutive years of revenue growth and 4 years of profit growth.

• Comprehensive income matched profit at ¥2.228B, reflecting strong operational performance.

• Strategic shift to hardware subscriptions accelerated recurring revenue, with MRR up 31.7% YoY and recurring revenue ratio reaching 75.6%.

• Expanded product and platform features, executed 484 product updates, and completed major M&A integration.

Financial highlights

• Gross profit margin improved to 65.7% as cost of sales rose only 6.2% YoY, with gross profit at ¥8.772B.

• SG&A expenses increased 26.8% YoY, mainly due to advertising, personnel, and goodwill amortization; SG&A ratio at 41.6%.

• Operating profit margin rose to 24.1% (+2.6pt YoY), with a 5-year net sales CAGR of 32.8%.

• Cash and deposits at period end: ¥8.138B (+37.6% YoY); free cash flow up 360.3% YoY to ¥2.513B.

• Total assets increased to ¥14.08B from ¥10.917B YoY; net assets rose to ¥9.612B, equity ratio 68.3%.

Outlook and guidance

• FY2027 guidance: net sales ¥15.387B (+15.3% YoY), operating profit ¥4.004B (+24.5% YoY), ARR ¥14.2B (+28.4% YoY), profit ¥2.781B (+24.8% YoY), and basic EPS forecast ¥144.38.

• Dividend per share forecast to rise to ¥29.00, maintaining a payout ratio of ~20%.

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