unerry (5034) FY2026 Full-Year Earnings Deep Dive Report

unerry Inc. (Securities Code: 5034), a company specializing in the analysis of human flow and real-world data, has announced its financial results for the fiscal year ending June 2026. This report provides a multi-faceted analysis of the company's performance highlights, segment-specific trends, the strategic rationale behind the integration and planned merger with BlogWatcher, and the consolidated earnings forecast and long-term growth strategy for the fiscal year ending June 2027.

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1. FY2026 Full-Year Performance Highlights

For the fiscal year ended June 2026, unerry (on a non-consolidated basis) achieved record-high results, with net sales of ¥4,879 million (+31% YoY) and operating profit of ¥424 million (+36% YoY) .

• Net Sales : ¥4,879 million (+31% YoY)
• Gross Profit : ¥1,827 million (+25% YoY)
• Operating Profit : ¥424 million (+36% YoY)
• Net Income : ¥330 million (-1% YoY)
• Adjusted EBITDA : ¥453 million (+38% YoY)

While all service lines achieved double-digit growth, the direct gross margin saw a slight decline from 39% to 37% , primarily due to an increase in projects utilizing external resources. However, the operating profit margin improved from 8% to 9% as the company successfully optimized its SG&A expense ratio alongside business expansion. The achievement rate against the initial full-year forecast was 98% for net sales and 85% for operating profit.

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2. Five-Year Growth Track Record and Revenue Structure

Looking back at unerry’s growth trajectory, it is evident that the company has consistently pursued top-line expansion while simultaneously improving profitability.

[Significance and Background of the Slide]

This slide is a critical chart illustrating the company's performance trends (net sales, operating profit, and operating margin) over the past five years.

• Sustainable Sales Growth : From ¥783 million in FY2021 to ¥4,879 million in FY2026, the company has maintained a high 5-year CAGR of +44% . This proves the establishment of a structure that builds a solid revenue base annually, rather than relying on one-off windfalls.
• Profitability Post-Turnaround : Since turning profitable in FY2022 (following an operating loss of -¥160 million in FY2021), operating profit has grown from ¥74 million to ¥424 million, representing a 4-year CAGR of +55% . The operating margin has also climbed steadily from 2% to 9% , indicating that the company is successfully leveraging economies of scale.

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3. Recurring Revenue Structure and Strong Cohort Accumulation

The hallmark of unerry’s business model is the high proportion of recurring revenue driven by long-term customer retention.

1. Expansion of Recurring Customers : The number of recurring customers reached 176 (+36 YoY) , the largest annual increase to date.
2. High NRR (Net Revenue Retention) : The NRR, which measures revenue expansion from existing customers, remains at 120% , signaling successful cross-selling and up-selling.
3. Recurring Revenue Ratio : Recurring revenue accounts for 91% of total sales, demonstrating exceptional revenue stability.
4. Cohort Accumulation Structure : Revenue from existing customers acquired in previous periods totaled ¥4,292 million , which alone exceeds the entire company's total revenue from the previous fiscal year (¥3,726 million). This structure ensures that new customers are converted into recurring revenue streams, creating a compounding effect on the revenue base.

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4. Performance by Segment and Service

[Net Sales by Segment]

• Retail DX : ¥3,284 million (+22% YoY)
  • Reorganization into three teams—New Business Development, Cross-selling, and Partner Sales—proved successful, driving growth in recurring customers and increasing average revenue per key account.
• Retail Media : ¥851 million (+89% YoY)
  • Rapid growth in projects for consumer goods manufacturers. The company secured large-scale contracts through partnerships with major retailers and expansion into transit advertising and digital signage.
• Smart City : ¥680 million (+28% YoY)
  • Beyond traditional analysis and visualization, behavioral change services, such as tourism guidance for local governments, have expanded, particularly with projects in Tokyo and across the country.
• Global : ¥63 million (+20% YoY)
  • Focused on partnerships with inbound-related businesses and global advertising firms, as well as promoting SDK adoption overseas.

[Net Sales by Service Type]

• Analysis & Visualization : ¥1,514 million (+27% YoY) (Direct Gross Margin: 85%)
• One to One : ¥905 million (+18% YoY) (Direct Gross Margin: 40%)
• Behavioral Change : ¥2,460 million (+39% YoY) (Direct Gross Margin: 27%)

High-margin "Analysis & Visualization" continues to grow steadily, while "Behavioral Change" services, which meet strong needs for customer acquisition and promotion, are driving overall growth.

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5. Cost Structure Analysis and SG&A Leverage

As revenue scales, the company is successfully benefiting from "SG&A leverage," where the burden of fixed costs decreases relative to sales.

[Significance and Background of the Slide]

This slide details the breakdown of SG&A expenses, the downward trend in the SG&A ratio, and the growth in group headcount.

• Continuous Decline in SG&A Ratio : The SG&A ratio, which was 49% in FY2021, has declined annually to 29% in FY2026 (¥1,402 million, +21% YoY). Keeping expense growth below the sales growth rate (+31%) has contributed to the improvement in the operating margin to 9%.
• Strengthening Human Capital : The company continues to invest heavily in personnel and recruitment. The headcount for unerry alone has grown to 106 (+16% YoY) . Including the 55 employees from BlogWatcher, the total group headcount is now 161 , strengthening the organizational foundation for future scaling.

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6. BlogWatcher Integration and Merger Plan

unerry acquired BlogWatcher Inc. (BW) in May 2026 and has initiated a study toward a merger of the two companies , targeted for January 2027.

• Objectives and Synergies : The integration aims to combine strengths in three areas: Customers/Markets (tourism, real estate, local government), Data/Products (high-frequency data and standardization), and Organization/Talent (sales and engineering capabilities).
• Optimization of Investments : The company will pursue efficiency and resource reallocation by integrating technical development (e.g., SDKs), unifying data operation platforms, and optimizing development structures.

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7. FY2027 Full-Year Earnings Forecast and Profit Structure

Starting in FY2027, the company will transition to consolidated financial reporting , incorporating BW’s earnings (for 9 months) and related goodwill amortization.

[FY2027 Earnings Forecast (Consolidated)]

• Net Sales : ¥8,000 million (+64% YoY)
  • unerry (standalone): ¥6,500 million (+33% YoY)
  • BlogWatcher: ¥1,500 million
• Operating Profit : ¥556 million (+31% YoY)
  • unerry (standalone): ¥650 million (+53% YoY)
  • BlogWatcher earnings: -¥46 million
  • Goodwill amortization: -¥46 million
• Operating Margin : Consolidated 7% / unerry (standalone) 10%
• Adjusted EBITDA : ¥669 million (+48% YoY)

Data visualizing the composition of consolidated profit is provided below.

[Significance and Background of the Slide]

This slide bridges the gap between unerry’s standalone operating profit (¥650 million), consolidated operating profit (¥556 million), and "Adjusted EBITDA" (¥669 million), which represents the business's core cash-generating power.

• Impact of Goodwill Amortization : The operating loss from BW (-¥46 million) and accounting-based goodwill amortization (-¥46 million) are transitional factors weighing on consolidated operating profit.
• Standalone Profit Growth and EBITDA : unerry’s standalone operating profit is projected to grow by a robust 53% to ¥650 million . Furthermore, Adjusted EBITDA, which adds back non-cash expenses like goodwill amortization, depreciation, and stock-based compensation, is expected to reach ¥669 million (+48% YoY) , demonstrating strong underlying earning power.

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8. Long-Term Growth Strategy: "World Model OS" and the AI Era

The company has set a long-term growth target of ¥10 billion in standalone sales by FY2028 and plans to present a mid-to-long-term strategy incorporating the group integration by the second half of FY2027.

The Value of "Real-World Data" in the AI Era

With the proliferation of generative AI, differentiating AI models using only public internet data or internal company data is becoming increasingly difficult. unerry provides real-world behavioral logs (over 1 billion IDs of human flow big data)—which are difficult to acquire independently—structured as a "World Model OS."

By building an ecosystem where the more customers use AI (for store planning, demand forecasting, or retail media optimization), the more they utilize unerry’s real-world data, the company aims to evolve into a "data infrastructure company that changes decision-making," going far beyond simple data provision.

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9. Summary (Key Points for Investors)

• Reproducibility of Performance : A robust customer base with a 91% recurring revenue ratio and 120% NRR provides a structure for stable, expected growth.
• Realization of Synergies : Investors should monitor the progress of the merger with BlogWatcher (targeted for January 2027) and the extent of cross-selling expansion and cost optimization.
• AI & Data Infrastructure : As corporate AI adoption advances, whether unerry’s ontology-built human flow data becomes the de facto standard will be the key to long-term corporate value enhancement.