Avant Group (3836) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended June 2026 rose 9.0% year-over-year to ¥22,828 million, driven by sustained demand for digital transformation and financial disclosure solutions among Japanese corporates.

• Operating profit increased 12.3% year-over-year to ¥4,072 million, with margin improvements from software business growth and reduced outsourcing costs.

• Net income grew 12.0% year-over-year to ¥2,542 million, and EBITDA rose 10.0% to ¥4,396 million.

• Recurring sales ratio surpassed 40% for the first time, reflecting a stable and growing base of recurring revenue.

• Segment reorganization was implemented in FY6/26, now reporting Consolidated Financial Disclosure, Digital Transformation Promotion, Management Solutions, and Other.

Financial highlights

• Gross profit margin for Q3 was 45.2%, up 2.0pts year-over-year; operating profit margin reached 17.8%, up 0.5pts.

• ROE for Q3 was 25.6%, maintaining a high level above 20%.

• Total assets at Q3-end were ¥21,160 million, with an equity ratio of 67.9%.

• Operating cash flow for the nine months was ¥1,148 million, with free cash flow at ¥158 million.

• Diluted EPS for the period was ¥70.16, compared to ¥62.24 in the prior year.

Outlook and guidance

• Full-year FY6/26 guidance maintained: net sales ¥33,300 million (+18.0% YoY), operating profit ¥5,100 million (+10.8% YoY), net income ¥3,500 million (+1.9% YoY).

• Year-end dividend forecast at ¥32 per share, aiming for DOE of 8% within the medium-term plan.

• Management expects continued growth investments, especially in software and R&D, despite macroeconomic uncertainties.