In-Depth Earnings Report: ROBOT PAYMENT Q2 FY2026

ROBOT PAYMENT Inc. (Securities Code: 4374) delivered a strong performance in the second quarter of the fiscal year ending December 2026. Both core businesses, "Subsc-Pay" and "Seikyu Kanri Robo" (Billing Management Robot), showed steady accumulation, with both revenue and profit at each level tracking extremely well against full-year forecasts . Furthermore, the capital and business alliance with RAKUS Co., Ltd. , announced on the same day as the earnings release, is a pivotal development expected to significantly accelerate customer acquisition and market share expansion.

This report provides a comprehensive analysis of the company's performance highlights, a deep dive into key KPIs, the unique nature of its financial structure, and its future growth trajectory.

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1. Q2 FY2026 Cumulative Performance Highlights

For the first half of the fiscal year ending December 2026 (January–June 2026), the company achieved double-digit year-on-year growth in both revenue and profit.

• Revenue : 1,785 million JPY (+14.3% YoY / 48.5% progress against full-year forecast)
• Gross Profit : 1,641 million JPY (+15.5% YoY / 49.5% progress)
• Operating Profit : 446 million JPY (+16.0% YoY / 52.4% progress)
• Net Profit : 326 million JPY (+21.4% YoY / 55.5% progress)

Progress against full-year forecasts reached 52.4% for operating profit and 55.5% for net profit, indicating that the company is tracking ahead of plan while maintaining the capacity for strategic investment in the second half.

On a quarterly basis (Q2), revenue reached 904 million JPY (+11.1% YoY), marking a new record high. While Q2 operating profit saw a slight decline to 221 million JPY (-1.4% YoY), this was due to proactive upfront investments in new business development and talent acquisition, aligning perfectly with the company's internal roadmap.

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2. Corporate KPIs and the Strength of the Recurring Revenue Model

The company’s core strength lies in its recurring (stock-type) business model , which generates continuous revenue rather than one-off sales.

The recurring revenue ratio remains exceptionally high at 98.6% , ensuring outstanding predictability and stability.

Background and Significance of the KPI Dashboard

The slide above summarizes the key KPIs that demonstrate the robustness of the company's business foundation:

• ARR (Annual Recurring Revenue) : Expanded steadily to 3,515 million JPY (Subsc-Pay: 2,106 million JPY; Seikyu Kanri Robo: 1,409 million JPY).
• Total Accounts : Continued to grow, reaching 9,992 AC , nearing the 10,000 milestone.
• Churn Rate : Maintained at an extremely low level of 0.72% (Subsc-Pay: 0.67%; Seikyu Kanri Robo: 0.76%), reflecting high customer satisfaction and deep integration into client workflows.
• Average Revenue Per Account : Increased to 106,681 JPY , demonstrating not only growth in account numbers but also improved profitability (ARPU) per client.

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3. Unique Financial Structure: Impact of Deposits and a "70.9% Adjusted Equity Ratio"

The most critical point in interpreting the company's balance sheet (B/S) is the presence and impact of "Deposits Received."

In its payment agency service, the company temporarily holds (for up to 50 days) the sales proceeds received from card companies and banks before remitting them to client companies. This process results in a large "Deposits Received" liability ( 6,105 million JPY as of the end of Q2 2026) and an equivalent amount of "Cash and Deposits" on the asset side.

Explanation of the Equity Ratio Slide

While the superficial equity ratio is 18.4% , this is due to the inflation of total assets caused by these temporary deposits inherent to the business model.

When these deposits (6,105 million JPY) are excluded from total assets, the "Adjusted Equity Ratio" jumps to 70.9% . This is more than double the average for the information and communications sector among TSE-listed companies (31.8%). With no interest-bearing debt (such as long-term loans), the company maintains an extremely sound and effectively debt-free financial foundation .

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4. Detailed Segment Analysis

(1) Subsc-Pay Business

• Revenue : 546 million JPY (+9.5% YoY, with 536 million JPY in recurring revenue)
• Average Revenue Per Account : 19,724 JPY (+6.6% YoY)
• Accounts : 8,897 AC (+2.7% YoY)
• Payment Transaction Volume : 64,924 million JPY (+8.9% YoY)
• Number of Transactions : 4.336 million (+11.7% YoY)

The temporary slowdown in transaction volume caused by the industry-wide mandatory adoption of 3D Secure has passed, and the number of transactions has returned to a strong growth trajectory of +11.7% YoY. Furthermore, according to an ITR market research report, the company has secured the No. 1 market share in the subscription management market for four consecutive years (projected 34.3% share in 2025) , establishing an absolute market position.

(2) Seikyu Kanri Robo Business

• Revenue : 355 million JPY (+13.5% YoY, with 350 million JPY in recurring revenue)
• Average Revenue Per Account : 106,681 JPY (+1.7% YoY)
• Accounts : 1,092 AC (+12.6% YoY)
• Billing Amount : 566,199 million JPY (+119.2% YoY)
• Invoices Issued : 1.788 million (+33.8% YoY)

Driven by an expanding customer base, this segment continues to show high growth. Notably, the billing amount has surged to 566.1 billion JPY, more than double the previous year , indicating rapid penetration among large enterprises and high-value clients.

The company has also released a new "Debt Collection Robot Auto-Link Connector," further strengthening the product by automating and centralizing the entire accounting process from invoice issuance to payment, reconciliation, and dunning.

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5. Future Growth Story: Major Capital and Business Alliance with RAKUS

The highlight of this earnings announcement is the capital and business alliance with RAKUS Co., Ltd. (TSE Prime) , concluded on August 12, 2026.

Strategic Background and Implications of the Alliance

This partnership has the potential to fundamentally transform ROBOT PAYMENT's future growth phase:

1. OEM Provision of "Seikyu Kanri Robo" as "Rakuraku Receivables Management" : ROBOT PAYMENT will provide its billing robot as the foundation for RAKUS's "Rakuraku Receivables Management." By leveraging RAKUS's massive customer base of small and medium-sized enterprises and its robust sales network, the company expects an explosive expansion of its sales channels .
2. Mutual Complementarity : The synergy between ROBOT PAYMENT's superior billing and receivables management product foundation and RAKUS's overwhelming sales and marketing power will maximize market impact.
3. Strengthened Commitment : RAKUS has acquired 120,000 shares of ROBOT PAYMENT's treasury stock (3.10% voting rights, approx. 278 million JPY), ensuring a long-term, solid partnership.

Furthermore, to strengthen its finance domain, the company has appointed Mr. Keio Hirako, former President of AEON Bank, as a Strategic Advisor for Finance Services. Preparations are underway for entry into new areas beyond existing payment and billing frameworks, such as RBF (Revenue Based Financing) and overseas remittance robots.

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6. Conclusion

ROBOT PAYMENT's Q2 FY2026 results demonstrate the extreme robustness of its core recurring revenue base and its excellent financial health, evidenced by a 70.9% adjusted equity ratio .

With the stable growth of its existing businesses—Subsc-Pay (No. 1 market share) and Seikyu Kanri Robo—combined with accelerated sales through the "Rakuraku Receivables Management" alliance with RAKUS and the launch of new finance initiatives, the company has established a clear and multi-layered growth story .