VRAIN Solution (135A) Q2 2026 earnings summary

Executive summary

• Revenue for 2Q FY2026 was ¥1,047 million, up 29.5% year-over-year, with gross profit of ¥841 million (+36.9%).

• Operating income dropped 49.7% to ¥95 million, and net income fell 51.4% to ¥61 million year-over-year, due to increased costs and investments in business expansion.

• The company expanded its workforce by 40 YoY to 106 at 2Q-end, strengthened customer support, and prepared for new office openings.

• Order backlog at 2Q-end was ¥1,126 million, up 188.8% from the previous year, reflecting continued business growth.

• Launched new AI-X-ray inspection product (PX-1000N) to address growing demand for internal defect detection.

Financial highlights

• Gross profit margin improved to 80.4% (+4.4 pts YoY); operating margin for 2Q was 9.1%.

• SG&A expenses rose 75.6% YoY, mainly due to increased personnel, hiring, R&D, and one-time HQ relocation costs.

• Cash and equivalents at period-end fell to ¥89 million, down ¥399 million from the previous year-end.

• Total assets increased to ¥2,048 million, up ¥175 million from the previous year-end.

• AI system sales unit price decreased 8.3% from the previous quarter due to increased standalone equipment sales.

Outlook and guidance

• Full-year FY2026 revenue forecast is ¥3,215–3,265 million (+50% YoY), with operating income of ¥890–940 million (+49.6–58.0% YoY).

• Net income for the year is projected at ¥590–630 million (+38.8–48.2% YoY).

• Operating margin is expected to recover to 27.7–29.2% for the full year, with one-time HQ relocation costs of ¥76 million impacting 1H.

• Continued focus on hiring, sales office expansion (Sendai, Sapporo, Fukuoka, Hiroshima), and customer base growth.

• No revision to previously announced earnings guidance.