ATLED (3969) investor relations material

Executive summary

• Revenue for the second quarter of FY2026 increased by 2.1% year-over-year to ¥1,405 million, while operating profit declined by 8.8% to ¥482 million and net profit decreased by 8.9% to ¥322 million.

• Cloud services sales grew 28.2% year-over-year, offsetting declines in package software sales, with a strong shift from package to cloud offerings.

• The company launched an AI-powered workflow product, aiming to accelerate digital transformation and operational efficiency for clients.

• Cash and cash equivalents increased by ¥245 million during the period, reaching ¥5,237 million at period end.

Financial highlights

• Revenue rose to ¥1,405 million (+2.1% YoY), operating profit fell to ¥482 million (−8.8% YoY), and net profit dropped to ¥322 million (−8.9% YoY).

• Gross profit for the period was ¥894 million, with a gross margin of 63.7%.

• Stock sales accounted for over 80% of total revenue, with a contract renewal rate above 99.8% for key cloud products.

• Free cash flow improved to ¥365 million, and cash and equivalents reached ¥5,237 million.

• Earnings per share for the interim period were ¥43.12, down from ¥47.34 year-over-year.

Outlook and guidance

• FY2026 full-year revenue is projected at ¥3,120 million (+12.8% YoY), with cloud sales expected to reach 56% of total revenue.

• Operating profit is forecast to grow to ¥1,170 million (+10.6% YoY), driven by cloud service expansion despite higher personnel and infrastructure costs.

• Full-year net income is projected at ¥784 million, up 7.6% year-over-year.

• The company plans to accelerate the shift to SaaS, targeting record-high sales.

• No changes have been made to previously announced guidance.