Soracom (147A) Q2 2027 earnings summary

Executive summary

• Q2 FY3/27 YTD revenue rose 44.5% YoY to ¥7.211B and recurring revenue grew 34.4% to ¥5.535B; EBITDA increased 129.9% and operating profit 161.8%.

• FY3/27 EBITDA and operating profit forecasts rose by ¥108M each on AI-enabled SG&A savings; revenue and recurring revenue forecasts were unchanged.

• SORACOM Physical AI Suite, Sora-Cam Pro and a Security Assessment & Hardening Service expanded the Physical AI and security offerings.

Financial highlights

• Q2 YTD gross profit rose 35.9% to ¥3.584B; gross margin declined 3.2 points to 49.7%, reflecting Misora Connect consolidation and large device deals.

• SG&A rose 19.0% to ¥2.769B, while SG&A as a share of revenue improved 8.2 points to 38.4%.

• EBITDA was ¥1.032B, up 129.9%, with a 14.3% margin; operating profit was ¥814M, up 161.8%, with an 11.3% margin.

• Ordinary profit was ¥807M, up 171.3%; net income was ¥582M and profit attributable to owners was ¥611M, up 161.5%.

• Basic and diluted EPS were ¥13.36 and ¥13.01, versus ¥5.17 and ¥5.02 a year earlier.

Outlook and guidance

• FY3/27 forecasts remain ¥15.124B revenue, up 21.7%; ¥11.421B recurring revenue, up 22.8%; and ¥7.614B gross profit.

• EBITDA forecast rose 6.5% to ¥1.758B and operating profit forecast rose 9.6% to ¥1.230B, with projected growth of 43.1% and 41.2%.

• FY3/27 forecasts include ordinary profit of ¥1.181B, parent-attributable profit of ¥800M and EPS of ¥17.45; forecast dividends remain ¥0.00 per share.

• Forecasts assume ¥150/USD and exclude inorganic growth; yen weakness could lift revenue, and multiple strategic deals remain under evaluation.

• FY3/31 target: ¥50B revenue, 30%+ CAGR and a 70–80% recurring revenue ratio; medium- to long-term inorganic growth target is 20–30% of revenue.