Summary
In FY03/26, the vertical ramp-up of the AI Data Center (AIDC) business drove revenue to JPY 14.16B (+4x YoY) and operating income to JPY 201M, both record highs. CEO Takino emphasized during the call that the company's early pivot to inference GPUs was validated by the structural shift in the AI market from the training phase to the inference phase—a transition he anticipated firsthand through visits to overseas data centers and factories. For FY03/27, with the AIDC business contributing for a full year and the crypto-asset financial services business achieving full-scale monetization, the company is guiding for revenue of JPY 25.552B (+80%), operating income of JPY 1.142B (+468%), and further flagged upside optionality outside the plan from large-scale DC development deal structuring and a GPU token platform concept.
Key Points (Earnings Highlights and Growth Actions)
- Business Strategy and Market Assessment
- The AI market is shifting from training-centric to inference-centric; autonomous AI and multi-agent architectures are expected to drive inference demand beyond prior forecasts
- Japan's DC supply lags the US and China due to lack of modular construction technology and constraints around power and building permits—the company sees this gap as an entry opportunity
- Presented a three-layer integrated model spanning AI compute, AI social implementation, and on-chain finance, targeting a circular revenue structure rather than single-business dependency
- Current Business Progress and Drivers
- AIDC business posted JPY 5.495B in 4Q standalone (+75.8% QoQ), selling ~5,000 GPU equivalents and capturing an estimated 12–13% share of domestic major DC supply (company estimate)
- AIUI business achieved roughly +20% or higher YoY growth across all sub-segments following divestiture of unprofitable operations and resource reallocation (average quarterly growth: HR 17%, advertising 21%, next-gen AI media 168%), with JPY 71M in productivity gains from AI-driven operational transformation
- Crypto-asset financial services: lending borrowing balance exceeded JPY 4B within two weeks of launch; April alone produced spread-positive results with JPY 27.3M in investment income vs. JPY 24.6M in borrowing costs
- Strategic Initiatives and Inflection Points
- Partnership with SuperX (NASDAQ-listed) secures exclusive domestic procurement capability for Blackwell-generation GPU-equipped servers
- Commenced distributed AIDC development at Futaba, Fukushima (completion targeted December 2026) and Satsumasendai, Kagoshima (completion targeted mid-2027)
- Acquired SPV interest in Anthropic for USD 5M, aiming for AI technology/knowledge access and AIDC business synergies
- Expanding supported assets on Rakuraku Cho Coin to ETH, XRP, and USDC sequentially, building out a crypto-asset financial ecosystem
Outlook and Strategy
- FY03/27 guidance: revenue JPY 25.552B (+80%), operating income JPY 1.142B (+468%), adjusted net income JPY 970M (+529%)
- AIDC business plans revenue of JPY 19.98B (+97%), targeting gross margin improvement by raising the direct sales ratio through enhanced marketing
- Crypto-asset financial services targets AUM of JPY 20B by end of FY03/27 (funded via warrant proceeds + lending), projecting revenue of JPY 1.568B based on a 12.5% annual yield and average BTC price of JPY 11M
- Upside optionality outside the plan includes: construction revenue from fund/SPC structuring for DC development projects, a GPU token platform (low-cost inference API provision), and immersion cooling technology adoption for cost reduction and external sales
- CEO Takino stated that if DC development progresses on track, it could add JPY several billion to the top line with a commensurate operating income contribution
- Established an M&A and Talent Development Office to build the organizational infrastructure for step-change growth
Positive Factors
- AIDC business revenue accelerated each quarter (1Q JPY 50M → 4Q JPY 5.495B), supported by the structural expansion in inference demand
- Blackwell-generation GPU procurement capability via SuperX is scarce domestically, providing a sustained competitive advantage under supply constraints
- The legacy AIUI business delivered +17–168% quarterly YoY growth across all sub-segments; pinpoint new-graduate direct-channel ratio improved from 18% to 29%, driving margin expansion
- Crypto-asset lending pre-registration campaign premiums ended in May, implying further profitability improvement going forward
- Completion of the Fukushima and Kagoshima DCs will add a recurring revenue (stock-type) layer on top of GPU server sales
- Over 80% of the 14th tranche of stock acquisition rights has been exercised (~JPY 3.25B raised), securing funding for growth investments
Concerns and Risks
- Crypto-asset mark-to-market gains/losses have an outsized impact on recurring profit (~JPY 700M in unrealized losses booked in FY03/26), posing balance sheet impairment risk during BTC price declines
- The lending business hinges on maintaining a positive spread between investment income and borrowing costs; short-term negative-spread risk cannot be ruled out
- AIDC business revenue is primarily GPU server sales with low gross margins; the pace of transition to the DC development/operations phase is key to profitability improvement
- The 15th tranche of stock acquisition rights (10,000,000 shares) remains unexercised, representing dilution risk upon exercise
- DC development requires JPY 1–1.5B per MW of capex; delays are possible if fund/SPC structuring does not proceed as planned
- The GPU market undergoes rapid generational transitions, necessitating management of inventory obsolescence risk and next-generation product switchover
- Japan Asia Investment and Governance Partners hold a combined stake exceeding 33%, with reference to possible significant proposals (no applicable matters at this time)
Performance Highlights
Consolidated revenue for FY03/26 reached JPY 14.16B (+399% YoY), a record high. The AIDC business accounted for 72% of revenue and was the primary growth driver. Operating income hit a record JPY 201M, but ~JPY 700M in crypto-asset unrealized losses resulted in recurring profit of negative JPY 496M and net income attributable to owners of parent company of negative JPY 518M. Adjusted net income was JPY 154M, remaining in the black.
- Cumulative GPU Units Sold: ~5,000 units (~12–13% share of domestic major DC supply, company estimate)
- AIDC Business 4Q Standalone Revenue: JPY 5.495B (+75.8% QoQ)
- BTC Holdings: 168.5 BTC (average acquisition cost JPY 14.724M)
- Lending Borrowing Balance: 300+ BTC (exceeded JPY 4B within two weeks of launch)
- pinpoint New-Graduate Segment Revenue: JPY 248M (+23.3% YoY)
- Job Search Engine Revenue: JPY 2.52B (+18% YoY), average retention rate 98%
- HR Ads Platform Revenue: JPY 224M (+30% YoY), accounts +65%
- Adjusted Recurring Profit: JPY 201M (vs. negative JPY 24M in prior year)
- EPS: negative JPY 14.99, Adjusted EPS: JPY 3.88
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