FIG FY2026 Q2 Earnings Deep Dive: Strong Growth Driven by Core IoT & Payment Segments, with Automation Expansion Paving the Way for Future Success

1. Executive Summary & Performance Highlights

FIG Inc. (Securities Code: 4392) achieved significant year-on-year growth in both revenue and profit for the first half of the fiscal year ending December 2026 . This performance was strongly driven by its core IoT and payment business, Mobile Create Co., Ltd., alongside the steady expansion of its growth segment, REALIZE Co., Ltd.

• Net Sales : 7,516 million JPY (+13.7% YoY, +907 million JPY)
• Gross Profit : 2,164 million JPY (+7.5% YoY, +150 million JPY)
• Operating Profit : 582 million JPY (+48.5% YoY, +190 million JPY)
• Ordinary Profit : 577 million JPY (+50.8% YoY, +194 million JPY)
• Quarterly Net Profit Attributable to Owners of Parent : 365 million JPY (+10.6% YoY, +35 million JPY)

Progress against the full-year forecast (Net Sales: 14,000 million JPY, Operating Profit: 1,000 million JPY) is tracking ahead of schedule, with 53.7% of sales , 58.2% of operating profit , and 57.8% of ordinary profit achieved. In addition to top-line growth, the company successfully controlled and optimized SG&A expenses, leading to an increase in the operating profit margin from 5.9% in the same period last year to 7.7% , highlighting a notable improvement in profitability.

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2. Performance Analysis by Key Group Subsidiary

The FIG Group's performance is driven by its three primary subsidiaries: Mobile Create, REALIZE, and KTS.

① Mobile Create (Core Driver)

• Net Sales : 3,245 million JPY (+22.7% YoY, +599 million JPY)
• Gross Profit : 1,246 million JPY (+21.3% YoY, +218 million JPY) Services in the mobile communication and IoT infrastructure sectors, including taxi dispatch systems, multi-payment terminals, and bus operation management services, remained robust. Both the upside in stable recurring revenue and the introduction of new terminals contributed to the group's overall growth.

② REALIZE (Growth Segment: Robotics & Automation)

• Net Sales : 2,659 million JPY (+19.2% YoY, +429 million JPY)
• Gross Profit : 487 million JPY (+19.3% YoY, +78 million JPY) Capitalizing on labor shortages and the rising demand for automation in the manufacturing sector, the company successfully captured demand for transport robots and manufacturing equipment. Despite some delays in automotive-related capital investment due to Middle Eastern geopolitical tensions, growth in semiconductor-related and other automation solutions led to strong results.

③ KTS (Re-growth Phase: Under Structural Reform)

• Net Sales : 975 million JPY (-17.1% YoY, -201 million JPY)
• Gross Profit : 203 million JPY (-35.7% YoY, -113 million JPY) KTS, which handles multimedia systems for hotels and IoT board manufacturing, continues to face a challenging environment with declining revenue and profit. However, the company is currently in a "re-growth phase," implementing reforms such as reviewing its sales structure and shifting toward a more profitable business portfolio.

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3. Analysis of Operating Profit Factors and Profit Structure

The structural analysis of the 190 million JPY increase in operating profit (582 million JPY) compared to the previous year is as follows:

As shown in the waterfall chart above, the primary driver of the profit increase was the growth in gross profit from Mobile Create (+218 million JPY) . This, combined with the profit contribution from REALIZE (+78 million JPY) , more than offset the profit decline at KTS (-113 million JPY) and other areas (-33 million JPY).

Furthermore, a key point is the reduction in SG&A expenses (+39 million JPY, -2.4% YoY) . The ratio of SG&A expenses to sales improved significantly from 24.5% in the same period last year to 21.0% (21.5% for Q2 alone) , indicating an evolution toward a highly efficient profit structure where marginal profit from sales growth translates directly into operating profit.

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4. Strengthening Financial Foundation and Accumulating Subscription Revenue

Significant Improvement in Financial Structure

As of the end of June 2026, total assets reached 17,096 million JPY (+1,456 million JPY from the end of the previous year). Meanwhile, interest-bearing debt decreased by 1,138 million JPY to 2,165 million JPY , and the processing of convertible bonds (500 million JPY) was completed. Net assets increased by 2,549 million JPY to 11,412 million JPY , and the equity ratio rose by 10.3 points from 55.8% to 66.1% , reflecting rapidly improving financial health.

"Subscription Revenue" as a Pillar for Mid-to-Long-Term Growth

A core strength of FIG's business model lies in its IoT/Payment subscription (stock) business model , which generates continuous usage fees rather than relying solely on one-off equipment sales. As the graph above illustrates, the company has consistently expanded its recurring revenue since 2012, even while undergoing acquisitions and portfolio restructuring.

As of Q2 2026, the company has accumulated 2,173 million JPY in recurring revenue, with targets of 4,700 million JPY for the full year 2026 and 5,250 million JPY under the 2028 plan . This robust recurring revenue serves as a source of resilience against economic fluctuations and provides stable cash flow.

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5. Business Topics and Future Growth Strategy (Advanced Technology & New Markets)

The FIG Group is evolving from a "device manufacturer" to an "automation solution manufacturer," developing advanced solutions that integrate AI, semiconductors, and robotics.

① Robotics & Automation Initiatives

• Automatic GPU Loading/Unloading Equipment for AI Semiconductors : Developed jointly with a Taiwanese firm, this equipment is currently undergoing trial operations for mass production lines in Taiwan. Having already secured orders from a major domestic manufacturer , the company expects significant contributions once the mass production phase begins.
• Sampling Robot for Pharmaceutical Plants : The company's proprietary sampling robot, "MoMa-SLIM," was introduced at the bio-pharmaceutical manufacturing building of Chugai Pharmaceutical's Utsunomiya plant. By integrating Autonomous Mobile Robots (AMR) with robotic arms to automate daily environmental water sampling, the solution contributes to labor savings and enhanced quality assurance in the pharmaceutical industry.

② Drones & New Market Development

• Tethered Power Drone "R-7" : By receiving power and communication via a tether cable, this drone achieves 48 hours of continuous flight . First exhibited at "Japan Drone 2026," it is being deployed for remote video monitoring during disasters, large-scale infrastructure inspections, and municipal disaster prevention/security. Support for Starlink (satellite communication) and network RTK allows for advanced operation in communication-dead zones.
• Payment Terminals for Hotel/Tourism Markets : In collaboration with xxx (AGI) Co., Ltd., which operates the "HOTEL SMART" management system, the "PT-630" multi-payment terminal was introduced at a hotel in Akihabara, Tokyo. The company is promoting horizontal expansion to lodging facilities nationwide via API integration.
• Mobility & Public Transportation : The company has begun the installation and operation of 150 smart bus stops with signage for Osaka City Bus. These stops enable support for international tourists and real-time notification of disaster and operation information, with plans to accelerate deployment to other regions.

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6. Conclusion and Outlook

FIG's Q2 FY2026 earnings report demonstrates a successful synergy between the expansion of its stable subscription revenue base centered on Mobile Create and the growth of automation solutions for manufacturing and advanced industries led by REALIZE .

With the re-growth of KTS through structural reform and the social implementation of solutions in high-value-added fields such as AI semiconductors, pharmaceuticals, and drones, the business foundation for achieving the Mid-Term Management Plan (FY2026–FY2028) is steadily solidifying.