[In-Depth Analysis] Aucnet Q2 FY2026 Earnings: A Comprehensive Look at Business Growth and Capital Policy Driving Upward Revisions and Significant Dividend Hikes

Aucnet Inc.'s financial results for the first half of FY2026 (January–June 2026) demonstrate robust performance across all core business segments, resulting in record-high revenue and profit growth at all levels . Following the first quarter, the company has again announced upward revisions to its full-year earnings and dividend forecasts, signaling strong momentum.

This report provides a comprehensive analysis based on 10 key topics extracted from the earnings presentation, covering everything from the overall financial picture and segment-specific growth drivers to the strategic rationale behind the special dividend that marks a turning point in the company's capital policy.

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1. H1 FY2026 Consolidated Financial Summary

Consolidated performance for the first half of FY2026 saw significant expansion compared to the same period last year. Key figures are as follows:

• Net Sales : 37,983 million yen ( +16.8% YoY)
• Operating Profit : 7,082 million yen ( +21.3% YoY)
• Ordinary Profit : 7,154 million yen ( +25.1% YoY)
• Net Income Attributable to Owners of Parent : 4,820 million yen ( +30.2% YoY)
• Earnings Per Share (EPS) : 53.11 yen (compared to 40.37 yen in the same period last year)

[Slide Commentary: The Significance of the Consolidated Financial Summary (P.3)]

The slide above clearly illustrates Aucnet's exceptionally strong profitability in the first half. A critical takeaway is that operating profit growth (+21.3%) outpaced net sales growth (+16.8%), leading to an operating margin of 18.6% (+0.7pt YoY) . Furthermore, the progress against the initial full-year plan stands at 52.8% for net sales, 61.6% for operating profit, and 64.3% for net income, confirming that performance is tracking well ahead of the projections made at the start of the fiscal year and the Q1 stage.

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2. Quarterly Performance Momentum and Gross Transaction Value (GTV)

In the second quarter alone (April–June), momentum accelerated further, with net sales reaching 19,794 million yen (+19.6% YoY) and operating profit hitting 3,856 million yen (+40.1% YoY).

Gross Transaction Value (GTV) , which indicates the activity level of the circular economy market across the group, reached 444,042 million yen (approx. 444 billion yen), a 22.0% increase year-on-year . This growth was powerfully driven by the expansion of distribution volume in both the "Lifestyle Products" segment (used smartphones and luxury goods) and the "Mobility & Energy" segment (used cars and motorcycles).

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3. Segment Analysis ①: Lifestyle Products Segment

The Lifestyle Products segment contributed significantly to the overall increase in revenue and profit.

• Net Sales : 27,910 million yen ( +21.2% YoY)
• Segment Profit : 5,630 million yen ( +11.9% YoY)
• GTV : 93,470 million yen ( +16.7% YoY)

① Digital Products Business (Used Smartphones/Devices)

By focusing on strengthening new sourcing channels, including devices related to the GIGA School Program, distribution volume increased by 14.0% YoY to 1,574,950 units . Coupled with favorable foreign exchange impacts, the average transaction price remained strong, leading to a significant growth in GTV to 53,210 million yen (+21.3% YoY) . Additionally, overseas member activity and buying power have improved due to intensified sales efforts in Europe.

② Fashion Resale Business (Luxury Goods/BtoB/C)

Following a profit-oriented strategy that emphasizes high-end goods, the number of items listed in the BtoB business was soft (696,980 items, down 13.2% YoY). However, GTV increased to 28,930 million yen (+8.1% YoY) due to a rise in average transaction prices . Meanwhile, in the BtoC business (purchasing, etc.), the company successfully captured inbound demand driven by the weak yen and strong domestic purchasing power fueled by the stock market rally, resulting in a significant BtoC GTV growth of 11,328 million yen (+20.3% YoY) .

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4. Segment Analysis ②: Mobility & Energy Segment

The Mobility & Energy segment also achieved exceptionally high growth in terms of profitability.

• Net Sales : 8,512 million yen ( +6.2% YoY)
• Segment Profit : 2,421 million yen ( +28.5% YoY)
• GTV : 345,001 million yen ( +24.0% YoY)

Auto-Business (Used Car Auctions/Vehicle Inspections)

Driven by robust bidding appetite from overseas exporters, total successful bids/units sold increased by 13.2% YoY to 313,065 units . Combined with higher average transaction prices, the Auto-Business GTV reached 337,679 million yen (+24.3% YoY) . Furthermore, demand for inspection services, including certified inspections for used car magazines, remained high, with inspection volume reaching 824,303 units (+7.2% YoY) . Despite depreciation costs associated with the launch of the new core system "BASE," the segment profit margin improved dramatically due to an increase in bidding agency members and higher-margin auction commission income.

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5. Upward Revision of Full-Year Consolidated Earnings Forecast

Reflecting the strong performance in the first half, Aucnet has revised its full-year consolidated earnings forecast for the fiscal year ending December 2026.

[Slide Commentary: The Significance of the Revised Full-Year Earnings and Dividend Forecasts (P.20)]

This slide presents the most critical figures with the greatest impact on investors. The revised figures are as follows:

• Net Sales : 72,000 million yen → 75,000 million yen ( +16.9% YoY)
• Operating Profit : 11,500 million yen → 12,000 million yen ( +26.1% YoY)
• Net Income Attributable to Owners of Parent : 7,500 million yen → 7,800 million yen ( +31.7% YoY)
• Annual Dividend Per Share : 42.00 yen → 82.00 yen (compared to 29.00 yen in the previous year, an increase of +53.00 yen )

Raising earnings forecasts for the second consecutive quarter proves that the company's business model is structured to sustainably generate profit by skillfully capturing changes in the external environment (such as the weak yen and the expansion of the reuse market). Most notably, the decision to double the annual dividend from 42 yen to 82 yen stands out.

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6. Shift in Capital Policy and the Mechanism of the Special Dividend

A notable feature of this dividend revision is the inclusion of a 39 yen per share "Special Dividend."

[Slide Commentary: The Significance of the Special Dividend (P.21)]

The slide above is a quantitative and strategic breakdown of the significant dividend increase (82 yen) and the logic behind it. In its medium-term management plan "Blue Print 2027," Aucnet had allocated 5.0 to 7.0 billion yen for M&A growth investments. However, given the recent accumulation of healthy operating cash flow and sufficient investment capacity, the company decided to allocate 3.5 billion yen—half of the M&A investment budget—to shareholder returns .

The dividend breakdown is as follows:

• Ordinary Dividend : 43.00 yen (+1.00 yen increase due to upward earnings revision)
• Special Dividend : 39.00 yen (partial return of M&A investment budget)
• Annual Total : 82.00 yen (Dividend Payout Ratio: 95.5% )

This highlights a corporate stance that goes beyond simply increasing dividends due to good performance; it demonstrates a flexible review of capital allocation based on the medium-term plan to improve capital efficiency (ROE, etc.).

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7. Implementation of Special Shareholder Benefits

As part of its shareholder return program, the company also announced a one-time "Special Shareholder Benefit" for shareholders of record as of September 2, 2026 , separate from the regular year-end benefit.

• Record Date : September 2, 2026
• Eligibility : Shareholders holding 100 shares or more
• Benefit Details : Benefit points based on the number of shares held (1,000 pts for 100–299 shares, up to 40,000 pts for 3,000+ shares)
• Exchangeable Items : In addition to regular items, "Amazon Gift Cards" are now available as an option

By providing additional shareholder benefits alongside the dividend increase, the company aims to expand its shareholder base and encourage long-term holding.

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8. Summary and Future Focus Points

Aucnet's Q2 FY2026 results demonstrate that the company's earning power has increased significantly, with distribution volume expanding across all core areas: Digital Products, Fashion, and Auto-Business . Furthermore, the stance of actively returning surplus capital from the medium-term plan to shareholders (82 yen annual dividend, 95.5% payout ratio) is a factor that will attract significant market attention.

Looking ahead, the following points are considered key to business development:

• The sustainability of bidding demand in the used car and overseas export markets, which remain at high levels.
• The pace of procurement and distribution expansion for used digital devices, capturing the GIGA School renewal cycle.
• The execution status of new M&A and growth investments utilizing the remaining investment budget following the special dividend.

Continued interest will be focused on the company's efforts toward "creating a circular economy market" and the resulting financial performance.