ZIGExN (3679) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue rose 9.5% year-over-year to ¥6,759M, with EBITDA up 0.7% and operating income down 2.4% due to one-off M&A costs and low-margin business impacts.

• Net income attributable to owners was ¥971M, down 1% year-over-year; EPS increased to ¥9.69.

• Revenue and EBITDA reached record Q1 highs, in line with expectations; full-year earnings forecast remains unchanged.

• Cash and cash equivalents decreased by ¥3,655M from the previous fiscal year-end, ending at ¥10,641M.

• Portfolio optimization continues via business integration, divestment, and active M&A, including HR and insurance sectors.

Financial highlights

• Revenue: ¥6,759M (+9.5% YoY); EBITDA: ¥1,801M (+0.7% YoY); Operating income: ¥1,416M (-2.4% YoY); Net income: ¥971M (-1% YoY).

• EPS: ¥9.69 (+2% YoY); EBITDA margin: 26.7%; Operating margin: 21.0%; gross margin: 81.3%.

• Number of corporate clients grew 4.5% YoY to 23,401; unit price per client up 4% YoY to ¥1.11M.

• Total assets: ¥34,843M, down from ¥37,573M at prior year-end; total equity attributable to owners: ¥19,689M.

• Dividend forecast for FY3/2026 is ¥11.00 per share, unchanged from prior guidance.

Outlook and guidance

• Q1 results represent 24% progress toward full-year forecasts; revenue and profit guidance for FY2026/3 unchanged.

• Full-year FY3/2026 revenue is forecast at ¥28,000M (+10% YoY); net income projected at ¥4,020M, EPS ¥40.20.

• Vertical HR and Living Tech expected to drive growth; Life Service faces headwinds but travel sector remains robust.

• Dividend forecast raised to ¥11.0 per share; continued focus on M&A and portfolio optimization.