WingArc1st (4432) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly sales in FY2026 Q3, reversing previous revenue declines due to strong software license sales and robust recurring revenue streams.

• Revenue for the nine months ended November 30, 2025, increased by 4.1% year-over-year to ¥22,502 million.

• Cloud services, especially SVF Cloud and Dr.Sum Cloud, grew over 30% year-over-year, with subscriptions up 37% and total recurring revenue up 15%.

• Profit attributable to equity holders fell 6.0% year-over-year to ¥4,422 million.

• Total comprehensive income surged 58.8% year-over-year to ¥7,090 million, driven by gains in other comprehensive income.

Financial highlights

• Revenue rose 4.1% year-over-year to ¥22,502 million; BDS segment up 5.2%, DE segment up 2.1%.

• EBITDA decreased 3.3% year-over-year to ¥7,352 million, with margin down 2.5 points to 32.7%.

• Basic earnings per share decreased to ¥127.65 from ¥136.45 year-over-year.

• Total assets rose to ¥72,210 million as of November 30, 2025, from ¥68,436 million at the previous fiscal year-end.

• Equity attributable to equity holders increased to ¥45,117 million, with an equity ratio of 62.5%.

Outlook and guidance

• No change to full-year forecast: revenue target ¥31,200 million, EBITDA ¥10,460 million, profit ¥6,400 million.

• Progress rates for revenue, EBITDA, and profit are all above 69% as of Q3.

• Organic EBITDA margin expected to improve, with company-wide margin remaining flat.

• Annual dividend forecast is ¥104 per share, up from ¥104 in the previous year.