Key Positives From The Results
License-based revenue doubled to JPY 2,594M (+121.3% YoY), with its share of total revenue jumping from 15.7% to 45.6%. Corporate licenses (Data for AI) were the primary driver, underscoring a clear shift toward high-margin, recurring revenue streams. Adjusted EBITDA improved by JPY 100M YoY to negative JPY 501M, with Q4 standalone turning profitable at JPY 786M.
- License-Based Revenue:JPY 2,594M (+121.3% YoY), beating revised guidance by JPY 194M. Corporate license contracts for AI training and validation expanded with Woven by Toyota, a major overseas semiconductor manufacturer, and others
- Mass-Production Vehicle Adoption:HD map integration now spans 6 OEMs / 38 models (the most globally), including Honda Accord, SUBARU Outback, and Nissan Leaf. Cumulative installed base continues to build a stable revenue foundation
- Operating Cash Flow:Negative JPY 61M, a significant improvement from negative JPY 2,269M in the prior year. Accounts receivable collections of JPY 1,292M contributed to reduced cash burn
- North American Headcount Optimization:22 employees right-sized at the U.S. subsidiary, expected to yield approximately JPY 315M in personnel cost savings in FY03/2027. Progress on improving the overseas fixed-cost structure
- M&A Activity:Two surveying company acquisitions closed (Nihonkai Surveying & Design, Ricanos), establishing a vertically integrated data collection framework. The roll-up strategy is now in motion
Key Concerns From The Results
Revenue declined materially to JPY 5,686M (−23.8% YoY), dragged down by a JPY 3,201M drop in project-based revenue. Operating loss widened by JPY 657M YoY to negative JPY 1,876M, indicating that license-based growth alone has yet to fully offset the shortfall.
- Project-Based Revenue Halved:JPY 3,092M (−50.9% YoY). The decline reflected a shift in government contract procurement formats, compounded by deferrals on Middle East and GM-related projects, resulting in a JPY 1,608M miss versus initial guidance
- Cash Position Deteriorated Sharply:Cash and deposits fell JPY 4,725M from JPY 8,383M to JPY 3,658M. Long-term loan repayments of JPY 3,651M and investing cash outflows of JPY 1,910M were the primary drags. A subsequent event of JPY 810M in new borrowings has been executed, but the decline in liquidity warrants close attention
- SG&A Rose Despite Revenue Decline:SG&A increased to JPY 2,687M (+JPY 146M, +5.7% YoY), pressuring profitability amid top-line contraction. Gross profit margin fell to 14.2% (vs. 17.7% prior year, −3.5pt)
- GM Project Deferred on U.S. Tariff Risk:New project orders from GM were postponed to the next fiscal year due to earnings impact from U.S. tariff policies. If geopolitical risks and auto industry capex restraint persist, uncertainty around the project-based recovery remains
- Accumulated Losses Widening:Retained earnings deficit deepened to negative JPY 4,181M. Net assets declined JPY 1,729M to JPY 7,229M. The risk of breaching Aozora Bank's financial covenants (net assets at 75% maintenance, consolidated cash ≥ JPY 1B, positive adjusted EBITDA) requires monitoring
Focus Areas / Items To Monitor Going Forward
- Probability of achieving positive adjusted EBITDA (JPY 50M) in FY03/2027. Whether the breakdown targets — license-based revenue of JPY 3,000M (+15.7%) and project-based revenue of JPY 4,000M (+29.4%) — can be met, particularly the timing of deferred GM orders and revenue recognition
- Progress on converting Data for AI corporate licenses to a recurring revenue model. Ramp-up of subscription-based contracts alongside one-time licenses, and visibility into the new customer pipeline
- Pace of building a surveying network through M&A and the goodwill/investment payback timeline. Consolidated contribution and PMI progress at Nihonkai Surveying & Design (goodwill JPY 128M / 17-year amortization) and Ricanos (JPY 242M acquisition cost)
- Timeline and specific contract structures for transitioning corporate licenses (Data for AI) to subscription/recurring revenue models
- Breakdown of deferred project-based revenue (JPY 1,608M shortfall vs. initial guidance) that can be reliably recovered in FY03/2027
- Magnitude of U.S. tariff policy impact on the GM business and spillover risk to other OEM customers
- Concrete funding plan to satisfy Aozora Bank's financial covenants (positive adjusted EBITDA, cash ≥ JPY 1B maintenance)
- Pipeline count and investment budget for additional surveying company roll-up M&A
- Remedial measures for the delayed launch of 3D data licensing products (3Dmapspocket®, SRSS, etc.) and timeline for monetization
- Quantitative fixed-cost savings from optimizing overseas subsidiary operations (any measures beyond the 22-person North American reduction)
- Differentiation on data quality and pricing versus competitors in the Physical AI market
- Directional shift in the mix of government vs. private-sector projects within the JPY 4B project-based target for next fiscal year
- Utilization status of the commitment line (borrowing facility of JPY 2,000M) and potential for additional financing
Key Financial Highlights
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 5,686M | −23.8% |
| └ License-Based Revenue | JPY 2,594M | +121.3% |
| └ Project-Based Revenue | JPY 3,092M | −50.9% |
| Gross Profit | JPY 810M | −38.6% |
| SG&A | JPY 2,687M | +5.7% |
| Operating Income | −JPY 1,876M | - |
| Adjusted EBITDA | −JPY 501M | +JPY 107M improvement |
| Recurring Profit | −JPY 1,651M | - |
| Net Income Attributable to Owners of Parent Company | −JPY 1,708M | - |
| EPS | −JPY 72.30 | +JPY 9.50 improvement |
| Comprehensive Income | −JPY 1,729M | - |
| Depreciation & Amortization | JPY 969M | +83.4% |
| R&D Expenses | JPY 352M | +35.9% |
| Gross Profit Margin | 14.2% | −3.5pt |
| OPM | −33.0% | −16.7pt |
| ROE | −21.2% | +1.2pt |
Adjusted EBITDA reconciliation: Operating income −JPY 1,876M + D&A JPY 969M + subsidy income JPY 325M + M&A-related expenses JPY 77M + goodwill amortization JPY 3M = −JPY 501M (the company's disclosed definition excludes goodwill amortization, but the resulting figure of −JPY 501M is consistent). The widening operating loss (−JPY 657M) was offset by a JPY 439M increase in D&A and a JPY 243M increase in subsidy income, yielding a JPY 107M YoY improvement in adjusted EBITDA.
Performance By Business Segment
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| Domestic | JPY 1,456M | −45.9% | −JPY 974M | - | - |
| Overseas | JPY 4,229M | −11.4% | −JPY 917M | - | - |
- Automotive Corporate Licenses (Data for AI): Contract wins with Woven by Toyota, a major overseas semiconductor manufacturer, and others drove outperformance vs. plan. Demand for high-precision 3D data for AI applications materialized, pushing total license-based revenue to 2.2x YoY
- Automotive Mass-Production Licenses: New vehicle integration commenced with Honda Accord, SUBARU Outback, and Nissan Leaf. Coverage of 6 OEMs / 38 models is the most globally. Cumulative growth in installed units is building a stable revenue stream
- 3D Data Projects (Domestic): Fell JPY 800M short of initial guidance due to changes in government contract procurement formats. Private-sector logistics projects also experienced deferrals, limiting revenue contribution
- Automotive Projects (Overseas): Regulatory negotiation delays on new Middle East data development and GM project postponements caused by U.S. tariff policy combined for a JPY 773M miss vs. initial guidance (total deferral impact was JPY 808M including JPY 35M from domestic 3D private-sector projects)
Progress Versus Full-Year Guidance
Revenue came in at JPY 5,686M against revised guidance of JPY 5,500M (103.4% achievement), beating expectations. Adjusted EBITDA landed at negative JPY 501M vs. revised guidance of negative JPY 1,000M, a JPY 499M beat. License-based upside and cost reductions were key contributors.
| Item | Full-Year Actual | Revised Guidance (Feb.) | Achievement |
|---|---|---|---|
| Revenue | JPY 5,686M | JPY 5,500M | 103.3% |
| Adjusted EBITDA | −JPY 501M | −JPY 1,000M | +JPY 499M |
- Corporate license deals tend to concentrate in Q4 (January–March). In FY03/2026, Q4 standalone revenue was JPY 2.3B (40.7% of the full year). Revenue tends to remain subdued in Q1–Q3
Next Fiscal Year Guidance
FY03/2027 guidance calls for revenue growth driven by continued license-based expansion (JPY 3,000M, +15.7%) and a project-based recovery (JPY 4,000M, +29.4%) incorporating deferred contracts. Cost reductions including North American headcount savings (~JPY 315M) are expected to bring adjusted EBITDA to its first positive reading. Forecasts for operating income, recurring profit, and net income are not disclosed.
- Revenue: JPY 7,000M (+23.1%)
- Adjusted EBITDA: JPY 50M (turning positive)
(Operating income, recurring profit, net income, and EPS guidance for next fiscal year are not disclosed)
Commentary On Shareholder Returns
The annual dividend for FY03/2026 is JPY 0 (unchanged from the prior year). The FY03/2027 dividend forecast is also JPY 0. Eliminating accumulated losses remains the priority, and the zero-dividend policy is expected to continue for the foreseeable future. No mention was made of share buybacks or changes to the capital return policy.
Financial Position
Total assets contracted JPY 5,086M to JPY 10,889M, primarily driven by cash depletion from long-term loan repayments. The equity ratio improved to 66.2% (from 55.9%, +10.3pt), though this was attributable to liability reduction rather than equity growth — net assets themselves declined JPY 1,729M. As a subsequent event, JPY 810M in new borrowings was drawn to shore up liquidity.
- Key Figures
- Leverage Metrics
| Item | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 3,658M | −56.4% vs. prior year-end |
| Accounts Receivable and Contract Assets | JPY 2,708M | −31.9% vs. prior year-end |
| Total Current Assets | JPY 6,611M | −47.4% vs. prior year-end |
| Intangible Assets | JPY 3,532M | +33.6% vs. prior year-end; software JPY 3,359M + software in progress JPY 47M + goodwill JPY 124M, etc. |
| Total Non-Current Assets | JPY 4,277M | +25.3% vs. prior year-end |
| Total Interest-Bearing Debt | JPY 1,559M | −63.2% vs. prior year-end |
| └ Current Portion of Long-Term Borrowings | JPY 725M | Down significantly from JPY 3,491M in prior year |
| └ Long-Term Borrowings | JPY 780M | +JPY 30M vs. prior year-end |
| └ Lease Obligations (Current + Non-Current) | JPY 54M | - |
| Shareholders' Equity | JPY 7,204M | −19.3% vs. prior year-end |
| Contract Liabilities | JPY 1,150M | −11.5% vs. prior year-end |
| EBITDA | −JPY 904M | Operating income −JPY 1,876M + D&A JPY 969M + goodwill amortization JPY 3M |
News Released Alongside The Earnings Announcement
Major Announcements During The Quarter
- 2026/02/17Completed high-precision 3D map data development covering all of Canada. Canada coverage reached ~200,000 km, bringing total North American coverage to over ~1.56 million km and global coverage to over 1.8 million km Dynamic Map Platform completes data development for all of Canada, with HD 3D map data reaching approximately 200,000 km
- 2026/02/26HD 3D map data adopted for the third-generation Nissan Leaf's ProPILOT 2.0 system. A key milestone in expanding mass-production vehicle adoption Dynamic Map Platform's HD 3D map data adopted for the third-generation Nissan Leaf
- 2026/03/17The "Expressway-Connected Station Hub Promotion Council," with 13 participating companies including AOI Pro., Obayashi Corporation, and Mitsubishi Estate, commenced full-scale activities. A next-generation mobility hub network concept spanning autonomous driving, logistics, and energy Announcement of full-scale launch of the Expressway-Connected Station Hub Promotion Council
- 2026/04/27Ricanos, which has a track record in UAV surveying, was made a wholly owned subsidiary. The second M&A deal for building a surveying network, incorporating drone technology Dynamic Map Platform makes Ricanos, a pioneer in drone surveying, a subsidiary — second M&A for surveying network
Large-Shareholding Filings / Material Proposals Over The Past Year
- INCJ (Japan Investment Corporation): 31.92% → 31.33% (2025/07/24) — Change due to fluctuations among joint holders; no material proposals
- Resona Asset Management: 5.94% → 4.81% (2025/06/30) → 5.05% (2025/07/31) — Held for investment trust/discretionary investment management purposes
- Mitsubishi Electric: 6.60% → 4.91% (2025/12/04) — Strategic investment purpose; no material proposals
- Nomura Securities: 0.00% → 5.34% (2026/02/13) → 4.18% (2026/04/30) — Held as proprietary trading inventory for securities business operations
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