AlphaPurchase (Securities Code: 7115) reported its financial results for the second quarter (interim period) of the fiscal year ending December 2026, achieving year-on-year growth in both revenue and profit . Despite active allocation of strategic resources toward future growth, such as personnel expenses and IT investments, the company demonstrated solid performance as the expansion of gross profit in its core MRO (Maintenance, Repair, and Operations) and FM (Facility Management) businesses successfully absorbed these costs.

This report provides a comprehensive analysis based on key topics extracted from the earnings materials, covering performance highlights, drivers of profit fluctuations, segment trends, mid-to-long-term growth foundations, full-year outlook, and shareholder return policies.

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1. FY2026 Q2 Performance Highlights

For the first half of the fiscal year, consolidated results were as follows: Net Sales of 30.8 billion yen (+7.8% YoY) , Operating Profit of 757 million yen (+5.5% YoY) , Ordinary Profit of 764 million yen (+7.0% YoY) , and Net Profit of 514 million yen (+1.6% YoY) . EBITDA , a measure of cash-generating capability, reached 1.14 billion yen (+3.3% YoY) .

Progress against the full-year forecast (Net Sales of 65.3 billion yen, Operating Profit of 1.65 billion yen) stands at approximately 47% for sales, 46% for ordinary profit, and 45% for net profit. Given the company's seasonal patterns (a tendency toward a second-half weighting), this represents generally steady progress in line with historical trends .

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2. Analysis of Operating Profit Drivers: Balancing Growth Investment and Profitability

An analysis of the dynamics behind the operating profit growth (+47 million yen YoY) reveals the company's robust profit-generating structure and its commitment to strengthening its business foundation.

[Slide Explanation and Significance]

The waterfall chart above clearly illustrates the breakdown of positive and negative factors affecting operating profit from Q2 2025 to Q2 2026.

• Positive Contribution (Gross Profit Increase) : The core MRO business gross profit increase (+91 million yen) and FM business/other gross profit increase (+48 million yen) were major contributors. The combined gross profit increase for both segments reached 139 million yen.
• Negative Contribution (Expense Increase) : Costs rose due to personnel expenses (-52 million yen) associated with business expansion and organizational strengthening, IT expenses (-24 million yen) for system enhancements, and logistics costs (-10 million yen) .

This data signifies that the company is not merely cutting costs to boost profits; rather, it is actively promoting strategic investments in human capital and IT infrastructure while fully absorbing these costs through top-line growth and gross profit expansion, thereby securing a final increase in operating profit. It is evident that a healthy cycle of investment and growth is functioning effectively.

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3. MRO Business Trends and Competitive Strengths

The MRO business (procurement agency for factory and office supplies) is the core business, accounting for over 85% of the company's total sales. In the first half, MRO business sales were 23.6 billion yen (+3.9% YoY) , and segment profit was 626 million yen (+9.0% YoY) , showing steady performance.

Service levels, which temporarily declined due to the ransomware attack on ASKUL in the previous fiscal year, have normalized, and sales are generally on a recovery trend. Despite a reactionary decline from the previous year's surge in heatstroke prevention supplies due to legal changes, the segment operating profit margin showed an improving trend as a result of fixed cost optimization and operational efficiency.

A notable feature of the MRO business sales structure is that direct sales to large enterprises account for 85.9% , while sales to small and medium-sized businesses (via ASKUL) account for 14.1%. Furthermore, among direct-sale enterprise clients, 75.9% of sales come from major customers with monthly purchases of 50 million yen or more , and 18.6% from customers in the 10 million to 50 million yen range, building a highly stable portfolio centered on large, high-quality clients.

[Slide Explanation and Significance]

The graph above shows the sales trends by "contract start year (cohort)" in the enterprise MRO business. This slide is critical data proving the reproducibility and recurring nature of the company's growth model.

• High Customer Retention and Account Planning : Sales from the customer group that started contracts before FY2017 (the bottom gray section) have not only been maintained and expanded over many years, but sales from customer cohorts acquired in 2018, 2019, and 2021 have also accumulated over time.
• Maximizing LTV (Lifetime Value) : The visual demonstrates a "high net retention rate," where once introduced, the customer unit price increases through the expansion of purchasing locations and the breadth of items handled (deep-dive proposals). It is clear that not only new customer acquisition but also the expansion of existing customer usage is an engine for sustainable growth.

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4. FM Business Trends: Securing Large-Scale Projects and Normalizing Seasonality

The FM business (maintenance, renovation, and repair of stores and facilities) achieved significant revenue growth, with sales reaching 7.1 billion yen (+22.9% YoY) . Meanwhile, segment profit was 95 million yen (-13.4% YoY) .

While the decline in segment profit is attributed to factors such as the reactionary effect of high-margin projects in the same period last year, a quarterly trend analysis shows a sharp recovery in profitability from 34 million yen in Q1 (Jan-Mar) to 61 million yen in Q2 (Apr-Jun) .

The growth background of the FM business includes an increase in large-scale construction projects and the progress in leveling out construction projects that previously tended to be concentrated at the end of the fiscal year (Oct-Dec). The proportion of "large-scale projects spanning a certain period" that go beyond temporary procurement and repairs is increasing, putting the business on a steady recovery trajectory toward achieving the full-year target (segment profit of 200 million yen).

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5. Full-Year Earnings Outlook and Objective Progress Assessment

There are no changes to the full-year consolidated earnings forecast for the fiscal year ending December 2026, which was initially announced on February 13, 2026.

• Full-Year Sales Forecast : 65.3 billion yen (+10.8% YoY)
• Full-Year Operating Profit Forecast : 1.65 billion yen (+11.0% YoY)
  • MRO Segment Profit: 1.40 billion yen
  • FM Segment Profit: 0.20 billion yen
  • Other Segment Profit: 0.05 billion yen
• Full-Year Ordinary Profit Forecast : 1.65 billion yen (+11.0% YoY)
• Full-Year Net Profit Forecast : 1.13 billion yen (-0.8% YoY)

Progress at the end of Q2 stands at 47% for sales and approximately 46% for operating and ordinary profit. Considering the seasonality of the company's business (a tendency for sales and profits to be weighted toward the second half due to budget consumption behavior by client companies), this can be evaluated as progressing according to plan .

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6. Shareholder Return Policy: Strengthening Returns through Consecutive Dividend Increases and Commemorative Dividends

The company places importance on shareholder returns aligned with business growth, and its dividend track record and forecast trends show a clear stance toward increasing dividends.

[Slide Explanation and Significance]

This graph shows the trend of annual dividends per share (on a payment year basis).

• Rapid Dividend Growth : The company has continued to increase dividends steadily, from 12.4 yen in 2022 to 15.0 yen in 2023, 22.0 yen in 2024, and 27.0 yen in 2025.
• 2026 and 2027 Outlook : For 2026, the company plans an annual dividend of 37.0 yen, including a 5.0 yen 25th-anniversary commemorative dividend (32.0 yen ordinary dividend + 5.0 yen commemorative). Even more noteworthy is the outlook for the payment scheduled for March 2027, which sets the ordinary dividend alone at 37.0 yen .

The policy of not only implementing a commemorative dividend but also establishing the same amount as an ordinary dividend in the following term is a strong signal of the company's confidence in business expansion and its commitment to long-term shareholder returns.

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7. Summary and Comprehensive Analysis of the Growth Story

The key points from AlphaPurchase's Q2 FY2026 financial results are as follows:

1. Steady Performance : Through the growth of its two core businesses, the company maintained year-on-year revenue and profit growth (Sales +7.8%, Operating Profit +5.5%) while absorbing strategic investments (personnel and IT costs).
2. Recurring Nature of MRO Business : In direct sales to large enterprises (85.9% of sales composition), the LTV of existing customers continues to expand, proving a stable customer base with low churn risk.
3. Profitability Improvement in FM Business : Profit margins improved significantly from Q1 to Q2 due to an increase in large-scale projects and the promotion of seasonal leveling.
4. Proactive Shareholder Returns : A policy of sustainable return enhancement, including a dividend increase to 37.0 yen (including the 25th-anniversary commemorative dividend) and the transition to a 37.0 yen ordinary dividend in the following term.

By combining high customer retention and account expansion capabilities in the enterprise market with the project acquisition strength of the FM business, the company is making steady progress toward achieving its full-year targets of 65.3 billion yen in sales and 1.65 billion yen in operating profit .