SOURCENEXT CORPORATION
4344・Prime Market・Information & Communication
Japan (Domestic Business)
Domestic software and hardware sales form the core business, accounting for the majority of revenue
| Period | Current | Previous | Change |
|---|---|---|---|
| Consolidated net sales (Q1 FY2026, ending December 2026) | ¥2,867 million | ¥2,710 million (Q1 FY2025, ending December 2025: April–June 2025) / ¥2,805 million (reference: January–March 2025) | ↑ |
| Gross profit (Q1 FY2026, ending December 2026) | ¥1,512 million | ¥1,381 million (Q1 FY2025, ending December 2025) | ↑ |
| Operating loss (Q1 FY2026, ending December 2026) | △¥375 million | △¥678 million (Q1 FY2025, ending December 2025) / △¥1,336 million (reference: January–March 2025) | ↑ |
| Ordinary loss (Q1 FY2026, ending December 2026) | △¥323 million | △¥842 million (Q1 FY2025, ending December 2025) | ↑ |
| Quarterly net loss attributable to owners of the parent | △¥247 million | △¥644 million (Q1 FY2025, ending December 2025) | ↑ |
| Selling, general and administrative expenses | ¥1,887 million | ¥2,059 million (Q1 FY2025, ending December 2025) | ↓ |
| Total assets | ¥13,670 million | ¥14,544 million (end of FY2025, ending December 2025) | ↓ |
| Equity ratio | 37.1% | 38.3% (end of FY2025, ending December 2025) | ↓ |
| Retained earnings (accumulated deficit) | △¥10,333 million | △¥10,085 million (end of FY2025, ending December 2025) | ↓ |
| Quarterly net loss per share | △¥1.79 | △¥4.66 (Q1 FY2025, ending December 2025) | ↑ |
Business Details
SOURCENEXT CORPORATION's domestic business provides the AI translation device "POCKETALK," postcard creation software, security software, "Ikinari PDF," and other products to individuals and corporations through three channels: online shop, corporate sales, and consumer electronics retailers. Consolidated net sales for the first quarter of FY2026 (ending December 2026) (January–March 2026) were ¥2,867 million. As this is a single-segment business, the consolidated results directly reflect the actual state of the domestic business.
Recent Overview
In Q1 FY2026 (ending December 2026), the operating loss narrowed significantly due to higher sales and reduced SG&A expenses
Net sales for Q1 FY2026 (ending December 2026) (January–March 2026) were ¥2,867 million, up 2.2% year-on-year on a reference basis. Gross profit improved to ¥1,512 million, and SG&A expenses were reduced to ¥1,887 million (down ¥171 million quarter-on-quarter), resulting in an operating loss of △¥375 million, a significant narrowing from the previous quarter's △¥678 million. Extraordinary losses included ¥18 million in business structure improvement expenses and ¥13 million in loss on business transfer. Due to valuation losses on investment securities (net unrealized gains/losses on other securities of △¥303 million), comprehensive loss stood at △¥652 million. ¥250 million in new corporate bonds was newly recorded under fixed liabilities. Full-year earnings forecasts remain undisclosed.
Key Products
Growth Drivers
- Continued reduction in selling, general and administrative expenses (down ¥171 million quarter-on-quarter), narrowing losses
- Improvement in gross profit margin (gross profit of ¥1,512 million, gross margin of approximately 52.7%)
- Increased orders from government agencies and capture of corporate DX demand for "Ikinari PDF"
- Expansion of corporate subscription revenue for AutoMemo
- Reduction in ordinary loss due to non-operating income such as foreign exchange gains (¥72 million) and gains on investment in silent partnerships (¥34 million)
Risks
- Full-year earnings forecast undisclosed, creating uncertainty regarding the annual revenue outlook
- Accumulated deficit in retained earnings expanded to △¥10,333 million, continuing to weaken the financial base
- Equity ratio declined to 37.1%, with interest-bearing debt, including ¥3,100 million in short-term borrowings, remaining at a high level
- Risk of expanding comprehensive loss due to declines in the market value of investment securities (valuation difference of △¥303 million)
- Risk of earnings volatility associated with business portfolio restructuring, as indicated by recorded business structure improvement expenses and loss on business transfer
- Long-term risk of contraction in the postcard creation software market due to the structural decline of the New Year's card market
- Risk of a rebound decline following the end of temporary special demand associated with the end of Windows 10 support
Last updated: March 24, 2026