Bengo4.com (6027) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2026/FY3/2027 rose 27.3% year-over-year to 4,838 million yen, with operating profit up 36.8% to 698 million yen and profit attributable to owners of parent up 37.0% to 439 million yen, surpassing planned targets.

• Quarterly EBITDA exceeded 1,001 million yen (+38.2% YoY), and the company achieved record highs in new and net MRR.

• LegalBrain Agent and CloudSign both demonstrated strong growth, with LegalBrain Agent's ARR growing 3.8x in four months and CloudSign achieving record sales and contract volumes.

• The quarter included the consolidation of Mikata Micro Insurance Co., Ltd. and Japan Legal Network Inc. (with ATE Inc.), expanding the Professional Support Business segment.

• The company initiated a share buyback program, citing undervaluation and strong growth prospects.

Financial highlights

• Q1 net sales: 4,838 million yen (+27.3% YoY); EBITDA: 1,001 million yen (+38.2% YoY); operating profit: 698 million yen (+36.8% YoY); net profit: 439 million yen (+37.0% YoY).

• Company-wide ARR reached 16.32 billion yen (+27.8% YoY); CloudSign ARR up 23.6% YoY; Bengoshi.com and others' ARR up 35.1% YoY.

• Gross profit margin and operating profit margin improved, with operating profit ratio at 14.4%.

• Basic earnings per share increased to 19.24 yen from 14.22 yen YoY.

• SGA expenses increased due to new consolidation and hiring, but investments were disciplined.

Outlook and guidance

• Q1 progress rates: 23.6% of full-year net sales forecast (20.5 billion yen) and 23.3% of full-year operating profit forecast (3 billion yen), both ahead of plan.

• Full-year FY2026 forecast remains unchanged: net sales of 20,500 million yen (+25.9% YoY), EBITDA of 4,300 million yen, operating profit of 3,000 million yen, and profit attributable to owners of parent of 2,000 million yen.

• Basic earnings per share for the year forecasted at 87.78 yen.

• Continued focus on balancing upfront investments for growth with productivity improvements.