eGuarantee (8771) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 2025 rose 10.1% year-over-year to ¥8,253 million, with operating profit up 3.5% to ¥3,872 million and profit attributable to owners of parent up 6.8% to ¥2,685 million.

• Sales headcount is improving, supported by enhanced recruitment and training systems, with a 20% increase expected by FY2026 end, reaching 114 employees.

• Comprehensive income increased 3.5% year-over-year to ¥2,751 million for the nine-month period.

• Operational efficiency initiatives and expanded sales channels, including partnerships with non-financial agents, are supporting growth.

• A dedicated IR team was established, and treasury share acquisitions totaling ¥6.0 billion were completed as of January 2026.

Financial highlights

• Gross profit for the nine months was ¥6,030 million, up from ¥5,838 million year-over-year, with gross profit margin declining from 77.9% to 73.1%.

• Operating profit grew 3.5% to ¥3,872 million, and ordinary profit rose 4.5% to ¥3,984 million.

• Basic earnings per share increased to ¥57.56 from ¥52.67 year-over-year.

• Guarantee liabilities reached a record ¥895.3 billion, up 10.7% year-over-year.

• Profit attributable to owners of parent increased 6.8% to ¥2,685 million.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2026: net sales of ¥11,300 million (up 10.5% year-over-year), operating profit of ¥5,200 million (up 1.9%), and profit attributable to owners of parent of ¥3,550 million (up 1.7%).

• Basic earnings per share for the full year projected at ¥74.07.

• FY2028 targets include net sales of ¥20 billion, ordinary profit of ¥10 billion, ROE and ROIC of 20% or more, and a dividend payout ratio of 50% or higher.

• The medium-term plan aims to double sales and ordinary profit in four years, with growth supported by both headcount expansion and sales network development.

• No revisions to previously announced forecasts.