Soracom (147A) Q1 2027 earnings summary

Executive summary

• Recurring revenue rose 48.6% year-over-year to JPY 2.74B; total revenue increased 52.1% to JPY 3.38B.

• EBITDA grew 81.5% YoY to JPY 316M; operating profit up 69.3% YoY to JPY 215M.

• Profit attributable to owners of parent was JPY 171M, with a margin of 5.1%.

• Platform surpassed 10 million IoT connections in July 2026.

• All four growth areas—carrier services, connected car, AI-native cameras, and AI × IoT solutions—showed steady progress.

Financial highlights

• Gross profit increased 29.9% YoY to JPY 1.59B; gross margin was 47.0%.

• SG&A as a percentage of revenue improved by 8.7pt YoY to 40.6%, driven by AI adoption.

• Basic earnings per share for the quarter were JPY 3.77, compared to JPY 2.49 in the prior year.

• Cash and equivalents at quarter-end were JPY 9.2B; equity ratio at 78.6%.

• Total assets as of June 30, 2026, were JPY 15.28B, with net assets at JPY 11.96B.

Outlook and guidance

• Q1 recurring and total revenue achievement rates were 24.0% and 22.4% of full-year forecasts, respectively.

• FY3/27 targets 22.8% organic recurring revenue growth and EBITDA margin improvement.

• Full-year revenue forecast for FY ending March 31, 2027, is JPY 15.12B, up 21.7% YoY.

• Full-year EBITDA is projected at JPY 1.65B, a 34.3% increase YoY.

• Five-year plan aims for JPY 50B revenue by FY3/31, with 30%+ CAGR and 20%+ organic EBITDA margin.