WEATHERNEWS INC.

Business Details

The BtoB business provides weather risk response content to shipping, aviation, and infrastructure companies through the Sea, Sky, and Land Domains. The BtoS (consumer) business, operated as the Internet Domain, consists of subscription and advertising revenue from the company's proprietary app "Weathernews." Centered on a stock-type business model, the company maintains high earnings stability, with approximately 96.2% of revenue derived from stock revenue. As the final year of the Medium-Term Management Plan (2023-2025), the transition to a SaaS model and the establishment of an AI-based operating model progressed smoothly, resulting in higher revenue and profit.

Recent Overview

Achieved higher revenue and profit in the final year of the Medium-Term Management Plan, realizing a cumulative reduction of 15,300 hours/month in operational workload through AI utilization

In FY2026 (ending May 2026), revenue was ¥24,479 million (up 4.1% year on year) and operating profit was ¥5,244 million (up 16.1% year on year), resulting in higher revenue and profit. Through AI-driven operational efficiency improvements in the BtoB business, the company achieved a cumulative reduction of 15,300 hours/month in operational workload since the beginning of the prior fiscal year, leading to a decrease in personnel expenses year on year. Meanwhile, communication costs and weather data costs increased due to the advancement of R&D and productization of AI services. The Sky Domain recorded the highest growth rate at 15.5% year on year. In July 2026, the company formulated a new "Medium-Term Vision 2026," centered on three pillars: transformation into an AI Fusion Company, establishment of a global growth model, and acceleration of capital strategy. For FY2027 (ending May 2027), the company forecasts revenue of ¥25,800 million and operating profit of ¥5,400 million.

Key Products

Growth Drivers

• Enhanced profitability through AI-driven operational efficiency improvements in the BtoB business domains (cumulative reduction of 15,300 hours/month in operational workload since the beginning of the prior fiscal year) and reduced personnel expenses
• Development of new customer segments through the SaaS model (progress in developing new markets such as energy and retail in the Land Domain)
• New customer acquisition and upselling to existing customers for Sea Domain in the European market (European revenue for FY2026 (ending May 2026) was ¥2,512 million, up 11.0% year on year)
• Record-high DAU in the Internet Domain and increased revenue in both advertising and subscriptions, with brand strengthening driven by No.1 forecast accuracy rating for four consecutive years
• Continued sales expansion in the Sky Domain in the Asian airline market and domestic helicopter market (highest growth rate among all domains at 15.5% year on year)
• Strategic investment in AI infrastructure and talent based on the Medium-Term Vision 2026, targeting business expansion with a gross profit margin of 60% or higher and revenue growth of 10% or higher year on year within three years

Risks

• Revenue volatility due to the risk of losing specific high-value customers (some customer losses occurred in the Sea Domain in the current fiscal year, resulting in a shortfall against plan)
• Foreign exchange risk (the earnings forecast assumes an exchange rate of ¥150 to the US dollar)
• Continued decline in Internet Domain revenue from carrier-related services
• Increased communication costs and weather data costs associated with R&D and productization of AI services
• Significant decline in revenue in the Americas (FY2026 (ending May 2026): ¥250 million, down 35.7% year on year)
• Decrease in cash flow from operating activities (¥3,638 million in FY2026 (ending May 2026), down from ¥4,427 million in the prior fiscal year)