Soracom (147A) Q3 2026 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q3 FYE March 2026, with net sales for the nine months ended December 31, 2025, rising 47.6% YoY to ¥8,419 million and profitable growth of 48.8%.

• Operating profit increased to ¥645 million from ¥123 million YoY, and profit attributable to owners of parent reached ¥509 million, reversing a loss in the previous period.

• Upward revision to full-year forecast: revenue now expected at JPY 12.2B (+8%) and operating profit at JPY 0.83B (+23%).

• Global revenue ratio exceeded 40%, led by US growth (84% CAGR), and platform connections surpassed 9 million.

• SG&A ratio improved by 10.9pt YoY to 44.5% due to generative AI-driven automation.

Financial highlights

• Q3 YTD recurring revenue: JPY 6.61B (+38.2% YoY); total revenue: JPY 8.41B (+47.6% YoY).

• Gross profit: JPY 4.39B (+33.8% YoY), margin declined by 5.4pt due to Misora Connect consolidation.

• EBITDA: JPY 891MM (+3.5x YoY); operating profit: JPY 645MM (+5.2x YoY).

• Basic earnings per share improved to ¥11.25 from a loss of ¥3.65 in the prior year.

• Comprehensive income for the period was ¥578 million, compared to a loss of ¥94 million YoY.

Outlook and guidance

• Full-year net sales forecast is ¥12,200 million, up 35.7% YoY, with recurring revenue forecast at ¥9,100 million (+38.7% YoY).

• Full-year EBITDA is projected at ¥1,210 million (+45.1% YoY), operating profit at ¥0.83B (+26.4% YoY), and profit attributable to owners of parent at ¥610 million (+72.9% YoY).

• Basic earnings per share for the full year is expected to be ¥13.48.

• Revenue and profit forecasts revised upward, driven by a large device project, increased KDDI synergy revenue, and Misora Connect performance.

• SG&A expenses expected to remain controlled, with further improvement in SG&A-to-revenue ratio.