Soracom (147A) Q4 2026 earnings summary

Executive summary

• Recurring revenue reached JPY 9.29B, up 41.7% year-over-year, with total revenue at JPY 12.42B, up 38.1% year-over-year.

• EBITDA rose 47.3% to JPY 1.22B and operating profit increased 32.7% to JPY 871MM, both at record highs.

• Profit attributable to owners of parent grew 79.0% year-over-year to JPY 631MM.

• Recognized as a Leader in the 2026 Gartner Magic Quadrant for Managed IoT Connectivity Services.

• Five-year revenue target set at JPY 50B by FY2031, leveraging global expansion and M&A.

Financial highlights

• Gross profit increased 22.1% year-over-year to JPY 6.14B, though margin declined to 49.4% due to Misora Connect consolidation.

• SG&A ratio to revenue improved by 6.3 pts to 42.4% through cost control and AI adoption.

• Both recurring and total revenue exceeded the upwardly revised forecast, with operating profit surpassing expectations.

• Basic earnings per share increased to JPY 13.94 from JPY 7.84 year-over-year.

• Net assets increased to JPY 11.75B from JPY 10.36B year-over-year.

Outlook and guidance

• FY3/27 forecast projects recurring revenue of JPY 11.42B (+22.8% YoY) and total revenue of JPY 15.12B (+21.7% YoY).

• EBITDA expected to reach JPY 1.65B (+34.3% YoY), with operating profit at JPY 1.12B (+28.8% YoY).

• Profit attributable to owners of parent is forecast at JPY 706MM, up 11.8% year-over-year.

• Forecast does not include inorganic growth; strategic M&A pipelines may provide further upside.

• Weak yen could positively impact revenue and recurring revenue.