PostPrime (198A) Full Year FY2026 Earnings Deep Dive Report

PostPrime (Securities Code: 198A) has presented a detailed overview of its fundamental business structural reforms and future growth strategies in its full-year financial results for the fiscal year ending May 2026. This report provides an in-depth analysis of the company's business reform direction, M&A strategy, growth strategies for existing and new businesses, recent financial highlights, and past performance trends.

I. Direction of Business Reform and Specific Measures

PostPrime is undergoing a transformation from founder-led corporate management to business-led management . The objectives of this reform are to reduce dependence on specific influencers, redesign monetization and implement structural reforms, and achieve sustainable corporate value enhancement. Key specific measures include:

• Capital Increase and Fundraising of Approximately 900 Million JPY : In June 2026, the company raised approximately 900 million JPY to secure funds for M&A activities.
• Withdrawal from TakaTrade Business : A decision was made to withdraw from the TakaTrade commodity CFD trading platform business as of June 17, 2026. This is a strategic choice to improve the revenue structure by making an early exit.
• M&A Execution and Entry into New Areas : The company decided to enter the business succession and M&A brokerage services sector, including the acquisition of Infinity Life Co., Ltd. as a wholly-owned subsidiary.

These measures aim to improve the revenue structure through selection and concentration, thereby building a foundation for performance recovery. The management team has also been strengthened, with new directors possessing extensive experience in M&A and business expansion.

This slide is crucial as it clearly outlines the overall picture of PostPrime's management reform, moving away from its past business model towards a new growth trajectory, and the specific action plans to achieve this. In particular, the 900 million JPY fundraising and the withdrawal from the TakaTrade business are significant decisions that will greatly impact future business development, making them essential information for investors to understand the company's direction.

II. M&A Strategy and Non-Organic Growth

The company plans to leverage the approximately 900 million JPY in M&A funds raised in June 2026 to strengthen its mid-to-long-term earnings base through M&A . The M&A investment themes are diverse and categorized into three areas:

1. Immediate Revenue & Base Expansion : Areas expected to contribute immediate revenue and synergy with existing businesses, such as investment/financial media, paid communities, and influencer platforms.
2. Mid-term Growth Areas : Sectors with potential to become future growth drivers, including entertainment IP (voice actors, music, YouTubers), educational content, and content production companies.
3. Base Strengthening Areas : Areas aimed at reinforcing the business foundation and establishing long-term competitive advantages, such as marketing companies (SNS/advertising), data platforms (CRM/LTV), and financial products.

Clear M&A investment criteria have been established. Quantitatively, these include sales of 1-10 billion JPY, positive EBITDA or profitability within one year, EV/EBITDA multiple of 3-6x, and a payback period within 3 years. Qualitatively, emphasis is placed on businesses that contribute to expanding the revenue base, recurring revenue models, low dependence on specific individuals, and room for improvement through Post-Merger Integration (PMI).

For future growth, the company aims for non-organic growth by exploring and executing new M&A candidates, starting with the acquisition of Infinity Life Co., Ltd. as a wholly-owned subsidiary (July 2026), in addition to its existing businesses. Management resources are planned to be concentrated on the financial and economic information platform business and the business succession/M&A platform business.

III. Growth Strategies for Existing and New Businesses

For the existing financial and economic information platform business, 'PostPrime,' short-term initiatives include strengthening SNS promotion, renewing prime registration-exclusive channels, expanding content for beginner to intermediate investors, and improving UI/UX. Mid-to-long-term goals include reducing dependence on specific influencers, strengthening offline events, becoming the No.1 media in the investment community, and enhancing B2B business.

For the newly entered business succession and M&A platform business , Infinity Life Co., Ltd., which became a wholly-owned subsidiary on July 1, 2026, will be central. Short-term measures involve promoting business integration, unifying management systems, leveraging PostPrime's investor and corporate customer base for lead generation, and expanding the network for M&A cases. Mid-to-long-term plans include nationwide expansion of business succession and M&A brokerage services, non-consolidated growth through new M&A, and diversification and reallocation of management resources to strengthen the revenue base.

Particularly in the entry into the business succession and M&A brokerage sector, PostPrime plans to create synergies between the two businesses by utilizing its user base of approximately 430,000 investors and business owners with high interest in investment and asset management as a channel for acquiring M&A cases. Infinity Life offers industry-specific M&A brokerage services in sectors such as cram schools, real estate, and construction, aiming to provide highly specialized services.

IV. Full Year FY2026 Consolidated Financial Results Overview

For the full fiscal year ending May 2026, consolidated net sales were 553 million JPY, falling short of the revised forecast of 597 million JPY. However, operating loss was ▲238 million JPY, showing an improvement of 78 million JPY from the revised forecast of ▲316 million JPY. Ordinary loss also improved by 76 million JPY to ▲218 million JPY from the revised forecast of ▲294 million JPY. Net loss attributable to owners of the parent was ▲277 million JPY.

Factors for net sales performance include steady progress in PostPrime's continuous improvements and new user acquisition, but the transaction volume of TakaTrade fell below initial plans. Factors for operating loss improvement largely stem from cost reductions associated with the withdrawal from the TakaTrade business, indicating progress in business structural reform and cost reduction efforts. This aims to create a business structure where profits are more easily retained.

This slide is highly important as it specifically details how the latest financial performance compared to the revised forecast and explains the underlying factors. In particular, while net sales fell short, the improvement in operating loss due to cost reductions from business withdrawal is a key point to watch when evaluating the progress of future revenue structure reforms.

The consolidated earnings forecast for the fiscal year ending May 2027 is currently undisclosed. This is due to the significant impact that M&A and acquisitions may have on consolidated performance, making a reasonable calculation difficult at this time. The company plans to disclose the forecast promptly once a reasonable calculation becomes possible.

Looking at the consolidated balance sheet, total assets at the end of May 2026 were 1,016 million JPY (1,252 million JPY at the end of the previous fiscal year), and total net assets were 772 million JPY (997 million JPY at the end of the previous fiscal year). The equity ratio was 76.0% (79.4% at the end of the previous fiscal year), indicating a sound financial base.

V. Past Performance Trends and Future Outlook

PostPrime's past performance trends show that in the fiscal year ending May 2025, net sales were 897 million JPY, operating income was 183 million JPY, and the operating profit margin was 20%. However, in the fiscal year ending May 2026, net sales decreased to 533 million JPY, and the company recorded an operating loss of ▲238 million JPY.

This slide is essential for visually understanding the company's past revenue and operating profit trends, and for grasping the recent performance deterioration and the changing business environment behind it. Specifically, the decline in net sales and the shift to an operating loss from FY2025 to FY2026 strongly indicate the necessity of the current business reforms.

This performance fluctuation is primarily attributed to the underperformance of the TakaTrade business and the vulnerability of the revenue structure due to dependence on specific influencers. The current business reform and M&A strategy are positioned as a critical turning point to overcome these challenges and achieve sustainable and non-organic growth.

Conclusion

In its full-year results for the fiscal year ending May 2026, PostPrime achieved an improvement in operating loss despite a decrease in net sales, thanks to the withdrawal from the TakaTrade business and cost reductions. Going forward, the company will pursue a non-organic growth strategy leveraging approximately 900 million JPY in M&A funds, with the financial and economic information platform business and the business succession/M&A platform business as its two main pillars. Specifically, through the acquisition of Infinity Life Co., Ltd. as a wholly-owned subsidiary, PostPrime aims to pursue synergies between its existing user base and the M&A brokerage business, thereby diversifying and strengthening its revenue base. While the earnings forecast for the fiscal year ending May 2027 remains undisclosed, the company demonstrates a commitment to accelerating business structural reforms and growth investments under its new management structure, aiming for sustainable corporate value enhancement.