System D (3804) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of FY2026 rose 8.2% year-over-year to ¥3,027 million, exceeding initial plans, with operating profit flat at ¥652 million and net profit down 8.1% to ¥410 million, both above plan.

• Growth was driven by successful delivery of large projects, steady recurring sales, and expansion in both flow (new/upgrade system sales) and stock (support/cloud services) businesses.

• All major business segments, including educational, public sector, wellness, compliance, and pharmacy/AI solutions, contributed to increased sales and new product launches.

• Ongoing efforts focus on expanding solutions, improving profitability, and acquiring new users to strengthen recurring revenue streams.

Financial highlights

• Revenue for the interim period was ¥3,027 million, up 8.2% year-over-year and 3.7% above plan.

• Operating profit reached ¥652 million, flat year-over-year but 13.8% above plan; ordinary profit was ¥655 million.

• Net profit was ¥410 million, down 8.1% year-over-year but 4.1% above plan; comprehensive income was ¥433 million, down 6.3% year-over-year.

• Gross profit margin improved to ¥1,339 million, up 7.8% year-over-year.

• Total assets increased to ¥7,607 million, with net assets at ¥5,269 million and an equity ratio of 69.3%.

Outlook and guidance

• Full-year FY2026 guidance maintained: revenue ¥5,541 million (+10.1% YoY), operating profit ¥1,028 million (+9.6%), net profit ¥703 million (+12.0%), EPS ¥36.54 (post-split).

• Focus remains on expanding market share through new user acquisition and strengthening recurring revenue streams.

• Management notes forecasts are based on currently available information and may be subject to change.