Traders Holdings (8704) Q2 2026 earnings summary

Executive summary

• H1 FY3/2026 operating revenue was ¥5,856 million (down 23.5% YoY), with operating profit at ¥2,430 million (down 43.1% YoY) and profit attributable to owners at ¥1,747 million (down 39.4% YoY), impacted by low FX market volatility and limited price fluctuations in high-interest currencies.

• Despite subdued trading volumes, stable earnings were maintained and assets under custody grew, supported by effective marketing and new product offerings.

• System development and consulting business revenue increased 24.2% YoY from external customers.

• The company is well-positioned to capture market opportunities in H2.

Financial highlights

• H1 FY3/2026 operating revenue: ¥5,856 million (down 23.5% YoY); operating profit: ¥2,430 million (down 43.1% YoY); profit attributable to owners: ¥1,747 million (down 39.4% YoY).

• Assets under custody reached ¥123.0 billion at September 2025, up ¥10.8 billion from March 2025.

• Total assets increased to ¥142,318 million as of September 30, 2025, up from ¥125,048 million at the previous fiscal year-end.

• Net assets rose to ¥18,052 million, with equity of ¥17,906 million and an equity-to-asset ratio of 12.6%.

• H1 progress rates: operating revenue 39.8%, operating profit 34.7%, ordinary profit 34.9%, net profit 36.4% of full-year forecast.

Outlook and guidance

• Full-year FY3/2026 forecast maintained: operating revenue ¥14,700 million, operating income ¥7,000 million, net profit ¥4,800 million, assets under custody target ¥130.0 billion.

• Basic earnings per share forecast for the year is ¥176.09, not accounting for treasury share transactions.

• Revenue and profit progress below plan, but asset accumulation ahead of target ensures potential for H2 revenue expansion.

• Initiatives include new currency pairs, enhanced marketing, and system enhancements to drive H2 growth.

• Management maintains the full-year forecast due to high uncertainty in FX market conditions.