Key Positives From The Results
Operating income came in at JPY 116M, swinging to profitability from a loss in the year-ago period and beating the plan by JPY +82M. AI-driven server cost containment and headcount cost controls are delivering, enabling the company to advance both top-line growth and margin improvement simultaneously.
- Revenue of JPY 1,331M (+26.6% YoY), with payment-related revenue up +25.4% YoY driving the core business. Terminal sales also continued to benefit from large-lot orders targeting specific industries
- Operating income of JPY 116M, JPY +82M vs. plan. POS retrofit costs slipped into 2Q, and AI-enabled server cost optimization held expenses flat, improving the cost structure
- GPV of JPY 549.7B (+17.6% YoY), a record high for any 1Q. New merchant acquisition is tracking in line with plan
- Interest income of JPY 46M (+19.1% YoY); rising GPV and higher policy rates lifted recurring profit to JPY 161M (+207.8% YoY)
- DX/Mini App revenue of JPY 82M (+33.5% YoY), also +10.0% vs. plan, underpinned by labor-saving demand for self-checkout registers and similar solutions
Key Concerns From The Results
Revenue missed the 1Q plan by JPY -57M (-4.1%). GPV falling short of plan amid consumer price inflation and declining Chinese inbound tourist traffic warrants close monitoring.
- GPV missed plan by JPY -17.6B (-3.1%). Inflationary headwinds are materializing primarily in retail distribution and gas stations
- Gross profit margin of 72.7% (-4.2pt YoY). Continued large-lot terminal sales pushed up the cost ratio; the rise in terminal sales mix to 16.1% is structurally compressing gross margins
- COGS of JPY 363M (+49.9% YoY), growing faster than revenue. Incremental costs associated with new cashless domains and projects continue to weigh
- Retained earnings remain at JPY -4,548M, with accumulated losses persisting. The no-dividend policy will continue, leaving no shareholder returns in sight for the foreseeable future
Focus Areas / Items To Monitor Going Forward
- The magnitude of POS retrofit costs deferred into 2Q and the resulting impact on 2Q operating income. The company's plan assumes 2Q operating income of JPY 106M—below the 1Q actual—making the timing of cost recognition pivotal for full-year earnings
- Whether the GPV shortfall vs. plan driven by inflation is transitory or structural. In particular, consumer spending trends in retail distribution and gas stations, and the achievability of the full-year GPV target of JPY 2,547.4B
- The monetization timeline for Web3 initiatives via the StarPay-X concept and USDC payment implementation. The extent to which partnerships (Aptos, Circle, Solana, etc.) will translate into actual GPV and revenue contribution
- Whether full-year plan assumptions need revisiting in light of the inflation-driven GPV shortfall
- Quantitative breakdown of the POS retrofit cost deferral into 2Q and other cost improvement effects
- Sustainability of large-lot terminal orders and specific measures to maintain gross margins above 70%
- Launch timing and revenue model for the early settlement service, and outlook for utilization of the JPY 6B overdraft facility
- Expected timing of revenue contribution from the StarPay-X concept and merchant adoption targets for stablecoin payments
- Market size and revenue contribution outlook for AI × pre-payment healthcare solutions
- Business scope of the new subsidiary StarPay-Entertainment and its impact on consolidated results
- ARPU uplift from expanding the product lineup for SMEs
- Quantification of overseas expansion (3,000+ stores in Qatar / JPQR Global) in terms of revenue and GPV contribution
- Milestones toward the 2030 vision (revenue exceeding JPY 12B, OPM above 25%)
Key Financial Highlights
| Item | Value | YoY |
|---|---|---|
| Revenue | JPY 1,331M | +26.6% |
| └ Payment-Related | JPY 1,192M | +25.4% |
| └ DX/Mini App | JPY 82M | +33.5% |
| └ Other | JPY 56M | +46.8% |
| Cost of Goods Sold | JPY 363M | +49.9% |
| Gross Profit | JPY 967M | +19.6% |
| SG&A | JPY 851M | +4.9% |
| └ Personnel Expenses | JPY 435M | -1.8% |
| └ Depreciation | JPY 53M | -13.5% |
| Operating Income | JPY 116M | Swing to profit |
| Recurring Profit | JPY 161M | +207.8% |
| Net Income Attributable to Owners of Parent Company (Quarterly) | JPY 137M | +204.6% |
| EPS | JPY 8.14 | +201.5% |
| Diluted EPS | JPY 8.02 | +202.6% |
| Gross Payment Volume (GPV) | JPY 549.7B | +17.6% |
| Gross Profit Margin | 72.7% | -4.2pt |
| Comprehensive Income | JPY 149M | - |
The year-ago period recorded an operating loss of JPY -2M, so operating income improved by JPY +118M. Revenue missed plan by JPY -57M (-4.1%), but all profit line items from gross profit onward exceeded plan.
Performance By Business Segment
| Segment | Revenue | YoY | Operating Income | YoY | Margin |
|---|---|---|---|---|---|
| Fintech (Consolidated) | JPY 1,331M | +26.6% | JPY 116M | Swing to profit | 8.7% |
- Payment-Related (Excl. Terminal Sales): JPY 977M, 73.4% of revenue. Driven by fee income growth alongside rising GPV. Tailwind from cashless payment penetration reaching 58.0%
- Terminal Sales: JPY 214M, 16.1% of revenue. Large-lot orders for specific industries continued from the prior quarter; strategic sales that feed future GPV acquisition
- DX/Mini App: JPY 82M (+33.5% YoY, +10.0% vs. plan). Solid demand for labor-saving DX solutions including self-checkout registers and digital stamp rallies
- GPV (Retail Distribution / Gas Stations): Missed plan by -3.1% due to inflationary pressures. Cautious consumer sentiment slowed GPV growth in certain sub-sectors
Progress Versus Full-Year Guidance
1Q revenue progress stands at 23.1%, slightly below the 1Q assumption of 24.1% embedded in the full-year plan. However, operating income, recurring profit, and net income all exceeded 1Q plan, indicating solid profit-side progress. Management expects POS retrofit costs to be booked from 2Q onward and large pipeline deals to contribute to revenue, reaffirming the full-year plan with no changes.
| Item | Value (1Q Cumulative) | Full-Year Forecast | Progress Rate |
|---|---|---|---|
| Revenue | JPY 1,331M | JPY 5,760M | 23.1% |
| Operating Income | JPY 116M | JPY 500M | 23.2% |
| Recurring Profit | JPY 161M | JPY 707M | 22.8% |
| Net Income | JPY 137M | JPY 493M | 27.8% |
| GPV | JPY 549.7B | JPY 2,547.4B | 21.6% |
- GPV is typically highest in 4Q, which captures year-end/New Year consumption, while 1Q tends to be relatively low. The full-year plan reflects this back-half-weighted profile, with 1Q GPV of JPY 567.4B rising to JPY 709.1B in 4Q
Changes To Guidance
No revision to guidance. The full-year forecast published on February 12, 2026 (revenue JPY 5,760M, operating income JPY 500M, recurring profit JPY 707M, net income JPY 493M) has been maintained.
Commentary On Shareholder Returns
The company will continue its no-dividend policy for FY12/2026. Management indicated that numerous business investment opportunities offering greater shareholder value creation than dividends exist, and it will prioritize growth investment. The forecast of JPY 0 at interim and JPY 0 at year-end is unchanged.
Financial Position
The company maintains a virtually debt-free balance sheet with zero interest-bearing debt. The bulk of total assets comprises merchant settlement funds held in trust and corresponding cash and deposits; the balance sheet is structurally inflated due to business characteristics. The equity ratio is 19.3%, down -0.6pt from the prior fiscal year-end, but on a substantive basis excluding deposits held, net assets of JPY 7,813M represent ample shareholders' equity.
- Key Figures
- Leverage Metrics
| Item | Value | Additional Information |
|---|---|---|
| Cash and Deposits | JPY 38,219M | +5.6% vs. prior FYE |
| Total Assets | JPY 40,427M | +5.4% vs. prior FYE |
| └ Total Current Assets | JPY 39,355M | +5.7% vs. prior FYE |
| └ Total Non-Current Assets | JPY 1,072M | -3.6% vs. prior FYE |
| Net Assets | JPY 7,813M | +2.4% vs. prior FYE |
| Deposits Held | JPY 32,121M | +6.6% vs. prior FYE |
| Software | JPY 443M | -10.4% vs. prior FYE |
| Equity Ratio | 19.3% | 19.9% at prior FYE |
| Retained Earnings | JPY -4,548M | JPY -4,685M at prior FYE |
| EBITDA | JPY 170M | Operating income JPY 116M + Depreciation JPY 54M |
News Released Alongside The Earnings Announcement
None
Major Announcements During The Quarter
- 2026/04/08Unveiled "StarPay-X," a gateway concept bridging Web2 and Web3. A next-generation financial infrastructure vision connecting stablecoins, wallets, and blockchain with in-store payments Announced "StarPay-X," a gateway concept bridging Web2 and Web3
- 2026/04/15Deployed next-generation AI call solution "VoxAI Agent" at AEON Delight Connect's call center. First external enterprise rollout of AI-powered solutions Launched next-generation AI call solution at AEON Delight Connect's call center
- 2026/04/30Entered into a JPY 6B overdraft facility agreement with Sumitomo Mitsui Banking Corporation to secure working capital for the merchant early settlement service Notice regarding execution of overdraft facility agreement
- 2026/05/08Signed an MOU with Layer 1 blockchain Aptos to promote Web3 payment adoption. Advancing multi-chain integration under the StarPay-X concept Signed MOU with Aptos on collaboration to promote Web3 payments
Large-Shareholding Filings / Material Proposals Over The Past Year
None
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