Cross Marketing Group (3675) Q4 2026 earnings summary

Executive summary

• FY2026/6 net sales reached 33.20 JPY billion, up 14.9% year-over-year, setting a record high, while operating profit declined 29.1% to 1.81 JPY billion and net income attributable to owners fell 41.3% to 0.80 JPY billion due to external headwinds.

• Digital Marketing Business drove growth with 33% YoY revenue increase, aided by M&A; Research & Insight Business grew 1% overall, with strong domestic but weak overseas performance.

• Q4 profit was negatively impacted by delayed recovery from U.S. tariffs, political instability in emerging markets, and Middle East tensions.

• Comprehensive income declined 26.3% year-over-year to 0.93 JPY billion.

Financial highlights

• Gross profit rose 2% YoY to 11.26 JPY billion, but gross margin fell 4.4 points to 33.9%.

• SG&A expenses increased 11% YoY, but the SG&A ratio improved by 1.1 points.

• EBITDA dropped 24% YoY to 2.37 JPY billion; EBITDA margin decreased by 3.7 points.

• Ordinary income dropped 24.6% YoY to 1.79 JPY billion.

• Basic earnings per share decreased to 41.19 yen from 71.47 yen YoY.

Outlook and guidance

• FY2027/6 forecast: net sales of 40.0 JPY billion (+21% YoY), operating profit of 2.5 JPY billion (+40% YoY), and net income of 1.30 JPY billion (+63% YoY).

• Digital Marketing Business expected to grow 38% YoY; Research & Insight Business to rise 3% YoY.

• Basic earnings per share forecasted at 67.30 yen for the next fiscal year.

• Dividend payout ratio target raised to 20%, with annual dividend forecast at 16.0 yen per share.