Sansan (4443) Q1 2026 earnings summary

Executive summary

• Net sales increased 28.2% year-over-year to ¥12,283 million in Q1 FY2025, with strong growth across all segments and gross profit up 29.8% to ¥10,792 million; gross margin improved to 87.9%.

• Adjusted operating profit surged 178.8% year-over-year to ¥578 million, with margin improving by 2.5 points to 4.7%, despite increased advertising expenses.

• Net profit rebounded, returning to positive territory due to the absence of one-time stock compensation expenses and lower share-based payment expenses.

• Both subscription and monthly recurring sales per subscription remained strong, with profit generation advancing even with growth investments.

Financial highlights

• ARR exceeded ¥43.7 billion as of August 2025.

• Ordinary profit was ¥528 million (vs. -¥329 million YoY); EPS was ¥2.36 (vs. -¥2.96 YoY).

• Operating profit reached ¥527 million, compared to a loss of ¥325 million in the same quarter last year.

• Total assets decreased to ¥43,726 million, down ¥4,257 million from the previous fiscal year-end; net assets declined to ¥14,970 million.

• Gross profit margin improved by 1.2 points year-over-year, mainly due to operational efficiency in Bill One.

Outlook and guidance

• Full-year forecasts for FY2025 remain unchanged, targeting net sales of ¥52,707–54,003 million (+22.0% to +25.0% YoY) and adjusted operating profit of ¥6,851–8,640 million (+92.7% to +143.0% YoY).

• Medium-term policy aims for a 22–27% CAGR in net sales through FY2026 and an adjusted operating profit margin of 18–23% by FY2026.

• Profit recognition is expected to be back-loaded, with 75% of annual profit planned for the second half due to front-loaded advertising spend.

• Advertising budget for the year is set at ¥6.5 billion, with spending to be distributed evenly or slightly weighted toward Q4.