ZIGExN (3679) Q4 2026 earnings summary

Executive summary

• FY2026/3 saw record highs in revenue (¥29,221M, +15% YoY), EBITDA (¥7,592M, +7%), operating income (¥5,913M, +5%), and EPS (¥41.66, +9%).

• All profit metrics met or exceeded initial plans, driven by strong performance in Vertical HR and successful M&A.

• The business is anchored by the Life Service Platform, with core segments in Vertical HR, Living Tech, and Life Service, all showing steady demand despite some geopolitical and inflationary pressures.

• The 2nd Medium-Term Management Plan (MTMP) achieved transformation of Vertical HR into Z CORE (over ¥10B revenue), though overall targets were missed.

• The 3rd MTMP targets over ¥50B revenue and ¥12B EBITDA by FY2031/3, focusing on deeper workflow integration and AI-driven growth.

Financial highlights

• Revenue: ¥29,221M (+15% YoY, 104% of forecast); EBITDA: ¥7,592M (+7% YoY, 102% of forecast); Operating income: ¥5,913M (+5% YoY, 101% of forecast); Net income: ¥4,157M (+7% YoY, 103% of forecast).

• EPS: ¥41.66 (+9% YoY, 104% of forecast).

• Cash flow from operations: ¥5,427M; investing CF: -¥3,825M; financing CF: -¥2,018M.

• Goodwill-to-equity ratio: 0.6x; equity ratio: 55.5%.

• ROE maintained at ~20%.

Outlook and guidance

• FY2027/3 forecast: revenue ¥33,500M (+15% YoY), EBITDA ¥8,320M (+10%), operating income ¥6,430M (+9%), net income ¥4,390M (+6%), EPS ¥44.09 (+6%).

• 3rd MTMP targets: revenue >¥50B, EBITDA >¥12B, ROE ~20% by FY2031/3.

• Dividend forecast for FY2027/3: ¥13.5/share (payout ratio ~30%).