VRAIN Solution (135A) Q1 2026 earnings summary

Executive summary

• Q1 revenue was ¥195 million, down 46.5% year-over-year due to delayed project progress and prior quarter sales concentration.

• Gross profit was ¥144 million, down 45.0% year-over-year; operating loss was ¥228 million and net loss was ¥149 million, compared to profits in the prior year.

• Company is strengthening customer support, optimizing internal resources, and investing in new product development, including the PX-1000N AI X-ray inspection machine.

• Order backlog at quarter-end increased to ¥574 million with 251 client companies.

Financial highlights

• Q1 gross margin improved by 2.1 points year-over-year to 73.8%, despite lower sales.

• Operating loss in Q1 was mainly due to increased personnel, recruitment, R&D, and one-time HQ relocation costs.

• SG&A expenses rose 87.3% year-over-year, with personnel costs up 95% and recruitment costs up 92%.

• Q1 order backlog increased 47.3% from the previous year-end to ¥570 million.

• Repeat customer sales accounted for 44.4% of total sales.

Outlook and guidance

• Full-year FY2026 revenue forecast is ¥3,215 million (+50% YoY), with operating profit of ¥890–940 million (+49.6–58.0% YoY) and net profit of ¥590–630 million (+38.8–48.2% YoY); Q2 cumulative revenue forecast at ¥1,100 million (+36% YoY).

• HQ relocation will incur a one-time cost of about ¥76 million in the first half, temporarily compressing profit.

• Sales and profit expected to be weighted toward the second half, following customer demand for year-end equipment installation.

• Mid-term management targets: sales CAGR +50%, operating margin 30–40%.

• Management notes forecasts are based on current information and subject to change.