SECURE Inc. FY2026 Q2 Earnings Deep Dive Report

SECURE Inc. (Securities Code: 4264) reported strong financial results for the second quarter of the fiscal year ending December 2026 (January–June 2026), characterized by significant year-on-year growth in both revenue and profit at all levels , tracking precisely in line with the company's initial internal projections. This quarter also marked a pivotal period for securing long-term growth foundations through a series of strategic initiatives, including the consolidation of TOUCH TO GO (TTG) and Tescom Japan, as well as a capital and business alliance with Ricoh Japan.

This report provides a detailed analysis of the company's performance trends, shifts in revenue structure, synergies from M&A and alliances, and future growth strategies, organized across 10 key topics extracted from the earnings presentation materials.

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1. Q2 Cumulative Performance Highlights and Progress Against Targets

The consolidated financial results for the first half of the fiscal year ending December 2026 are as follows:

• Net Sales : ¥4,110 million ( +24.5% YoY)
• Operating Profit : ¥231 million ( +99.8% YoY)
• Ordinary Profit : ¥214 million ( +117.1% YoY)
• Profit Attributable to Owners of Parent : ¥89 million ( +79.9% YoY)

Progress against the full-year targets (Net Sales of ¥8,206 million, Operating Profit of ¥620 million) stands at 50.1% for sales and 37.3% for operating profit . Given that SECURE’s business model is weighted toward the second half of the year due to the concentration of deliveries and inspections, the 37.3% progress in operating profit represents steady growth in line with the initial plan .

[Why this slide is important]

This slide serves as the most critical summary for grasping the overall picture of these earnings. It confirms strong top-line expansion, with all categories in the core Security Solutions business (SECURE AC, SECURE VS, SECURE Analytics, and SECURE ES) achieving positive year-on-year growth. Furthermore, while net profit was impacted by an extraordinary loss from the valuation of investment securities (¥41 million), operating and ordinary profits—which reflect the core earning power of the business—have reached levels double those of the previous year.

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2. Performance Trends by Solution: Structural Shifts and Higher Unit Prices via Large-Scale Projects

An analysis of sales trends by product line reveals that growth is driven not merely by the number of installations, but by a shift toward larger-scale projects with higher unit prices .

1. SECURE AC (Access Control Systems) : Sales of ¥1,136 million ( +44.6% YoY) Growth was driven by large-scale projects in the retail sector. While the number of installations decreased from 1,532 to 677 compared to the same period last year, this is the result of a significant increase in average project value due to a higher proportion of large-scale contracts.
2. SECURE VS (Surveillance Camera Systems) : Sales of ¥2,416 million ( +13.4% YoY) As the core business accounting for over half of total sales, growth was led by large-scale projects for logistics facilities and data centers. The company successfully captured robust market demand while overcoming the reactionary decline from special small-scale projects seen in the previous year.
3. SECURE Analytics / Others (Image Analysis Services) : Sales of ¥188 million ( +56.9% YoY) Significant revenue growth was achieved, supported by the delivery of large-scale projects for the retail sector.
4. SECURE ES (Engineering Services) : Sales of ¥369 million ( +40.3% YoY) Steady expansion continues, bolstered by the integration of Media System since Q3 of the previous fiscal year.

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3. Analysis of Operating Profit Fluctuations: Strategic Upfront Investment and Underlying Profitability

The substantial increase in operating profit from ¥115 million in the previous year to ¥231 million ( +¥115 million / +99.8% ) is driven by clear structural factors.

[Why this slide is important]

This waterfall chart illustrates a virtuous cycle where the company is actively investing in future growth while simultaneously achieving sufficient profit growth through the expansion of its core business. Specifically, there were increases in personnel expenses (+20.9% YoY / -¥145 million) due to the expansion of the sales force, strategic expenses (-¥18 million) including exhibition costs, and other SG&A expenses (-¥50 million). However, the increase in gross profit (+¥327 million) resulting from the revenue growth in SECURE AC and VS significantly outweighed these cost increases.

Also noteworthy is that the adjusted consolidated operating profit reached ¥264 million when adding back one-time M&A-related costs (advisory fees, etc., of ¥15 million) and amortization of goodwill (¥17 million). This indicates that the company's actual cash-generating capability is even higher than the accounting-based operating profit suggests.

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4. Expansion of Personnel and Branch Network: Strengthening Sales & Marketing

To strengthen its business foundation, SECURE is accelerating the expansion of its sales and marketing personnel . The company achieved a net increase of 13 employees compared to the end of the previous year, bringing the total headcount to the 100-person scale .

Since it takes approximately 1.5 to 2 years for sales personnel to reach full maturity, the company continues to recruit aggressively ahead of business expansion. Concurrently, it has opened and expanded branches nationwide in Nagoya, Omiya, Yokohama, Hiroshima, Sapporo, and Sendai over the past few years, enhancing its nationwide coverage and marketing capabilities.

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5. Mega-Expansion of Unmanned Payment Solutions: TOUCH TO GO (TTG) Joins the Group

On April 1, 2026, SECURE completed the acquisition of a 56% stake in TOUCH TO GO (TTG) , a pioneer in unmanned payment system development, making it a consolidated subsidiary.

• Diverse Shareholder Base : In addition to SECURE, powerful infrastructure and retail giants such as JR East Start-up, FamilyMart, Toshiba Tec, and Glory are participating as shareholders.
• Vertical Integration of Retail DX : By complementarily combining SECURE’s large-scale, high-unit-price " SECURE AI STORE LAB 2.0 " (fully register-less) with TTG’s strength in small-scale, low-unit-price " TTG-SENSE / TTG-MONSTAR " (with a track record of over 250 installations), the company aims to become the undisputed No. 1 platform for unmanned and labor-saving stores capable of handling any store size.

TTG has grown rapidly over the past two years, with sales increasing approximately 4.5 times (¥968 million), and is successfully narrowing its losses. Through collaboration with the SECURE Group, the company aims to achieve early profitability through development cost reductions and cross-cost synergies.

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6. The Impact of Hardware In-housing: Full Acquisition of Tescom Japan

On July 1, 2026, SECURE acquired all shares of Tescom Japan Co., Ltd. , which handles the design and manufacturing of CCTV and security equipment on a one-stop basis, making it a wholly-owned subsidiary.

[Why this slide is important]

This slide represents a decisive strategic shift, signifying that SECURE has evolved from a mere solution provider into a "technology company with in-house hardware manufacturing capabilities."

By acquiring integrated manufacturing know-how—from electronic circuit design, mechanical design, and mold design to assembly—the following three powerful synergies are created:

1. In-housing of Hardware Development : Acceleration of development speed and self-contained control of quality and costs.
2. Integrated Development of "AI x Payment x Hardware" : Combining SECURE’s image recognition AI, TTG’s unmanned payment software, and Tescom’s hardware to develop next-generation retail DX devices (Made in JAPAN) with integrated crime prevention and anti-shoplifting features.
3. Cross-selling via Group Sales Channels : Vertical expansion into new areas such as government offices, data centers, medical facilities, and schools, in addition to offices and factories.

Tescom Japan recorded sales of ¥692 million and an operating profit of ¥65 million for the fiscal year ended March 2026, and is expected to contribute positively to consolidated profits after fully absorbing the burden of goodwill amortization.

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7. Alliance with Major Players: Capital and Business Alliance with Ricoh Japan

As another pillar of its growth strategy, a capital and business alliance with Ricoh Japan Corp. is being promoted.

SECURE will leverage Ricoh Japan’s powerful nationwide sales network and customer base to cultivate large-scale projects for enterprise clients, which had previously been a challenge for SECURE. In the short term, SECURE’s physical security solutions will be integrated into Ricoh Japan’s DX proposals, with dedicated partner sales teams deployed to expand sales channels. In the medium to long term, the companies aim to collaborate on the development and integration of "RICOH Spaces" with security data, targeting joint expansion into overseas markets, starting with Southeast Asia.

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8. Full-Year Earnings Forecast and Medium-to-Long-Term Growth Roadmap

There are no changes to the full-year consolidated earnings forecast for the fiscal year ending December 2026, and the company maintains its plan for significant revenue and profit growth.

• Net Sales : ¥8,206 million (+20.0% YoY)
• Operating Profit : ¥620 million (+90.1% YoY)
• Operating Profit Margin : 7.6% (+2.8pt improvement from 4.8% in the previous year)
• Ordinary Profit : ¥600 million (+100.1% YoY)
• Net Profit : ¥410 million (+118.6% YoY)

SECURE has mapped out a roadmap to maximize corporate value by securing a stable revenue base (including stock revenue) in its existing security solutions business while fully launching new businesses such as the "AI STORE business" utilizing AI technology. The company intends to drive continuous performance growth by accelerating the integration and synergy creation with the group companies added through M&A toward the second half of the year.