GVA TECH (298A) Q1 2026 earnings summary

Executive summary

• Achieved record-high quarterly revenue, driven by strong growth in the LegalTech SaaS segment and strategic AI investments, with both year-over-year and sequential increases.

• Operating loss narrowed significantly year-over-year to ¥56.0 million, progressing toward full-year profitability.

• ARR and average customer unit price reached all-time highs, supported by new AI-powered solutions.

• Multiple generative AI solutions released, including consulting and products for legal professionals.

• No change to the forecast for the first-ever full-year net profit since founding.

Financial highlights

• Revenue for 1Q FY2026 was ¥400.4 million, up 24.5% YoY and 6.5% QoQ, with gross profit rising 16.2% to ¥251.9 million and gross margin improving to 62.9%.

• LegalTech SaaS revenue grew 24.5% YoY to ¥234 million; registry business revenue was ¥166 million, down 2.0% YoY but up 6.7% QoQ.

• Operating loss reduced by ¥34 million YoY to ¥56 million; net loss for the quarter was ¥62.6 million, an improvement of ¥29.7 million YoY.

• Total assets decreased to ¥1,285.7 million from ¥1,468.4 million at prior year-end.

• Equity declined to ¥232.2 million due to net loss; equity ratio at 15.6%.

Outlook and guidance

• Full-year FY2026 revenue forecast unchanged at ¥2,096 million, up 41.3% YoY.

• Gross profit margin expected to rise to 67.1%, with operating profit of ¥31 million and net profit of ¥2 million projected.

• Profitability expected from 3Q onward as revenue growth outpaces cost increases.

• Continued focus on expanding LegalTech SaaS and cost control to achieve profitability.

• No change to previously announced guidance.