MERCURY INC.

Business Details

Based on a database of new condominium properties accumulated over more than 30 years, the company's core businesses are the platform business, centered on the SaaS-type marketing system "Mansion Summary (SaaS)" for new condominium developers, and the digital marketing business, which supports sales and customer acquisition for condominiums. The company targets the three major metropolitan areas (Greater Tokyo, Kansai, and Tokai) and is driving business expansion through MRR growth resulting from the new pricing revision implemented in April 2026 and the launch of the new Rent Assessment DX service.

Recent Overview

Q1 net sales up 6.2% and operating profit up 21.1%, driven by the pricing revision and MRR expansion

In Q1 of FY2027 (ending February 2027) (March–May 2026), net sales were ¥421 million (+6.2% YoY) and operating profit was ¥28 million (+21.1% YoY), representing increases in both revenue and profit. MRR in the platform business steadily expanded following the transition to the new pricing revision implemented in April 2026. The digital marketing business also performed solidly, with net sales of ¥140 million (+17.4% YoY). The company newly launched "Rent Assessment DX," which utilizes its rental property database. There is no change to the full-year earnings forecast (net sales of ¥1,703 million and operating profit of ¥117 million).

Key Products

Growth Drivers

• Continued expansion of MRR (monthly recurring revenue) driven by the new pricing revision implemented in April 2026
• Strengthening of the platform business's accumulation-type revenue base through additional license sales
• Opening up of a new market among rental property management and brokerage companies through the launch of Rent Assessment DX
• Solid progress in web advertising operations and ad sales through collaboration with real estate media in the digital marketing business
• Cost reduction and profit-boosting effect from the peaking-out of software amortization expenses (Q1 depreciation expense of ¥10,372 thousand, a significant decrease from ¥18,882 thousand in the same period of the prior year)
• Synergy effects with the GA Group (including interest income from group financing transactions, etc.)

Risks

• Risk of declining demand in the new condominium market due to rising construction costs and higher interest rates
• Impact on the real estate market from price increases associated with geopolitical risks such as the situation in the Middle East and foreign exchange fluctuations
• Risk of a deteriorating market environment due to signs of price adjustment and a pause in the used condominium market
• Risk of continued high outsourcing costs and development delays due to a shortage of system development personnel
• Pressure on profit from service cost expenses associated with the introduction of a restricted stock compensation plan
• Risk of dependence on specific customers (Recruit accounted for 14.9% of net sales in the previous fiscal year but fell below 10% in the current fiscal year)
• The full-year net profit forecast represents a significant decrease of -51.3% (¥79 million) YoY (a special factor may have been present in the prior fiscal year)