visumo (303A) FY2026 Q3 Earnings Report

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Executive Summary

For the cumulative Q3 period of the fiscal year ending March 2026, revenue and earnings increased, resulting in a solid performance in which profit growth outpaced revenue growth. Revenue was ¥0.670B (+9.5% YoY), Operating Income was ¥0.079B (+3.8%), Ordinary Income was ¥0.081B (+25.1%), and Net Income was ¥0.054B (+25.1%). The substantial outperformance of Ordinary Income and Net Income relative to Operating Income was attributable to the shift from excess non-operating expenses in the previous-year period to excess non-operating income in the current period. Progress against the full-year plan was 69.3% for Revenue, compared with 92.9% for Operating Income, 95.3% for Ordinary Income, and 91.5% for Net Income, indicating that earnings are ahead of schedule and leaving substantial room to achieve the Q4 earnings plan.

Factors Affecting Performance

【Revenue】Revenue increased 9.5% YoY to ¥0.670B. A stock revenue ratio of 81.2%, 690 active companies, and ARPU of ¥105,484 (+¥1,570 YoY) indicate that stable recurring revenue from existing customers and higher unit prices drove growth. Expanded adoption in non-EC applications, including municipalities and manufacturing companies, also contributed.

【Profit and Loss】Operating Income was ¥0.079B, representing a limited 3.8% YoY increase, while the gross margin declined to 64.6% from 67.9% in the previous-year period, a decrease of 338bp. This was attributable to Cost of Sales increasing 21.2%, outpacing Revenue growth. Meanwhile, the SG&A ratio improved by 272bp YoY to 52.6%, partially offsetting the deterioration in the cost ratio. Ordinary Income and Net Income increased substantially by 25.1% YoY, but this includes a temporary factor resulting from the shift in non-operating income and expenses from an excess of expenses to an excess of income. Overall, the company achieved higher revenue and earnings, but the increase in earnings at the operating level was limited.

Segment Analysis

The company operates in a single segment, the Visual Marketing Platform Business; therefore, company-wide revenue and earnings correspond directly to segment results. Revenue was ¥670.7 million (+9.5% YoY), and Operating Income was ¥79.9 million (+3.8%), with the core business determining overall company performance. As indicated by the 81.2% stock revenue ratio, the earnings base is subscription-based and highly stable, but the business structure also means that the impact of the lower gross margin must be absorbed in full.

Key Financial Indicators

Profitability: ROE 12.5% (annualized), Operating Margin 11.8% (down from 12.4% in the previous year)
Financial Soundness: Equity Ratio 78.3%, Current Ratio 301.9%, D/E Ratio 0.28x
Per-Share Indicators: EPS ¥33.11 (¥28.81 in the previous year, +14.9%), BPS ¥350.73
Asset Composition: Intangible fixed assets account for 35.1% of total assets, indicating increased concentration in software-related investments.

Cash Flow Analysis

Cash and deposits were ¥0.273B, down from ¥0.347B in the previous-year period. Intangible fixed assets, primarily software, increased 30.7% YoY, suggesting that the allocation of funds to development investments was one factor behind the decline in cash. With a Current Ratio of 301.9% and an Equity Ratio of 78.3%, the financial base remains solid, and near-term liquidity concerns are limited.

Earnings Quality

Ordinary Income and Net Income increased 25.1%, substantially exceeding the 3.8% increase in Operating Income, and the divergence between these figures includes a temporary factor attributable to the improvement in non-operating income and expenses. The primary reason was that non-operating expenses were recorded in the previous-year period, whereas the current period shifted to an excess of non-operating income. Accordingly, earnings growth from the Ordinary Income level onward cannot be explained solely by improvements in operating performance, and earning power based on Operating Income must also be monitored.

Earnings Forecasts and Guidance

Against the full-year plan of Revenue of ¥0.967B, Operating Income of ¥0.085B, Ordinary Income of ¥0.085B, and Net Income of ¥0.059B, cumulative Q3 progress was 69.3% for Revenue, 92.9% for Operating Income, 95.3% for Ordinary Income, and 91.5% for Net Income. Compared with standard progress of 75%, Revenue is slightly below schedule; however, Q4 is typically subject to strong seasonality, and the required Revenue is ¥0.297B, equivalent to 44.3% of cumulative Q3 Revenue. Earnings progress is substantially ahead of standard progress, and the additional earnings required in Q4 are minimal, indicating a high likelihood of achieving the full-year earnings plan. It should be noted that temporary costs associated with the merger with ReviCo are expected to increase in Q4.

Shareholder Returns

Both the Q2 dividend and the full-year forecast dividend are ¥0 per share, resulting in a Payout Ratio of 0%. The company’s capital allocation policy is to retain earnings without paying dividends and allocate them to software investments, including strengthening the UGC platform in connection with the integration of ReviCo.

Catalysts

【Short Term】Recording of integration costs in Q4 associated with the absorption-type merger with ReviCo, conducted in January 2026, and the status of customer rollout following the integration of the review functionality. 【Long Term】Expansion into markets outside EC applications, including municipalities and manufacturing companies, and progress in upselling through new functions such as visumo recommend and visumo show.

Industry Benchmark (For Reference; Company Analysis)

Industry Benchmark (it_telecom)

Profitability and Returns

The company’s Operating Margin and Net Profit Margin exceed the industry medians, indicating that profitability is relatively high within the industry.

Growth and Capital Efficiency

The Revenue Growth Rate is slightly below the industry median, leaving growth at a mid-range level within the IT and telecommunications industry.

※Source: Company compilation

Risk Factors

1. Gross Margin Decline: The gross margin declined 338bp YoY to 64.6%. Cost of Sales growth (+21.2%) exceeded Revenue growth (+9.5%), and if this trend continues, pressure on the Operating Margin may increase.

2. Concentration in Intangible Assets: Intangible fixed assets account for 35.1% of total assets and increased 30.7% YoY. If the monetization of software investments falls below plan, increased amortization costs or asset valuation revisions could affect the profit margin.

3. Integration-Related Costs: Temporary costs are expected to increase in Q4 in connection with the absorption-type merger with ReviCo in January 2026. The realization of integration benefits may require a certain amount of time.

Key Points from the Earnings Results

1. Progress toward the earnings plan—Operating Income at 92.9%, Ordinary Income at 95.3%, and Net Income at 91.5%—substantially exceeds Revenue progress of 69.3%, indicating a high likelihood of achieving the full-year earnings plan.

2. The growth rates of Ordinary Income and Net Income (+25.1%) substantially exceed the growth rate of Operating Income (+3.8%). The earnings data indicate that this difference was attributable to the temporary factor of improved non-operating income and expenses.

3. The increase in the intangible fixed asset ratio to 35.1% reflects a business structure that uses software investment as a growth engine. At the same time, the future amortization burden and investment recovery status are important structural factors that will influence the trend in profit margins.

Theoretical Stock Price (Reference Value)

Sensitivity: ¥355–¥376 at ±1% for the Cost of Equity, and ¥365–¥366 at ±0.1 for ω.

Notes:

• Because Net Income progress against the full-year forecast (92%) exceeds the standard level (75%), forecast EPS has been adjusted upward within a maximum range of +10% (because companies that are ahead of schedule tend to exceed their forecasts; adjustments may be excessive for businesses with strong seasonality).
• Net assets as of the quarter-end are used (there is a timing gap relative to the full-year forecast).

(Calculation model: Residual Income Model (Ohlson type; explicit 5-year fade) / Interest rate reference month: 2026-07 / Mechanically calculated value based solely on publicly disclosed data; this is not a forecast of the market stock price or a recommendation of any specific investment action, and does not forecast or guarantee the future stock price.)

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This report is an earnings analysis document automatically generated through an integrated AI analysis of XBRL earnings summary data and PDF earnings presentation materials. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, and you should consult a professional as necessary.

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