Soracom (147A) Q1 2026 earnings summary

Executive summary

• Recurring revenue reached 1,845 MM JPY, up 19.7% YoY, with total revenue at 2,225 MM JPY, up 17.7% YoY.

• EBITDA and operating profit grew 29.7% and 35.0% YoY, respectively, with operating profit margin improving by 0.7pp.

• Ordinary profit surged 391% YoY to 119 MM JPY, with net income at 119 MM JPY, up 390.6%.

• Global revenue accounted for 47.3% of total revenue, reflecting strong international expansion.

• Comprehensive income for the quarter was 43 MM JPY, down 59.4% YoY.

Financial highlights

• Recurring revenue rose to 1,845 MM JPY (up 19.7% YoY), representing 82.9% of total revenue.

• Total revenue increased to 2,225 MM JPY (up 17.7% YoY); gross profit grew 9.3% YoY to 1,223 MM JPY.

• EBITDA reached 174 MM JPY (up 29.7% YoY); basic EPS was 2.49, compared to 0.06 prior year.

• SG&A expenses increased 6.9% YoY to 1,096 MM JPY, with cost controls aided by generative AI.

• Total assets stood at 12,883 MM JPY as of June 30, 2025, down from 13,403 MM JPY at March 31, 2025.

Outlook and guidance

• FY26/3 revenue forecast: 10,800–11,800 MM JPY (up 20.1–31.2% YoY); recurring revenue forecast: 8,690–9,410 MM JPY (up 32.4–43.4% YoY).

• EBITDA guidance: 1,060–1,210 MM JPY (up 27.1–45.1% YoY); gross profit expected to rise 18.2% YoY.

• Operating profit guidance: 600–750 MM JPY (up 2.8% YoY); gross margin expected to be 52.5–52.8%.

• Basic EPS projected at 9.30–12.62 for the full year.

• Misora Connect consolidation from Q2 projected to add 1,294 MM JPY in revenue and 358 MM JPY in gross profit for the year.