Stamen, Inc. FY2026 Q2 Earnings Deep Dive Report

Stamen, Inc. (Securities Code: 4019), a provider of engagement platforms, achieved significant growth in operating profit for the second quarter of the fiscal year ending December 2026. This performance was driven by the steady expansion of its flagship "TUNAG" business, the rapid growth of the "FANTS" segment, and company-wide initiatives to improve cost efficiency. This report provides a detailed analysis of the earnings highlights, segment-specific progress, new growth strategies, and the background behind the upward revision of the full-year earnings forecast based on the disclosed financial materials.

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1. Earnings Highlights: Sustained Revenue Growth and Doubling of Operating Profit

For the first half of the fiscal year, consolidated net sales reached 1,140 million yen, a 26.7% increase year-on-year (YoY) , maintaining a steady top-line growth trajectory. Notably, profitability saw a significant boost, with operating profit reaching 127 million yen, a 109.4% increase YoY , effectively more than doubling compared to the same period last year.

[Significance and Context of the Slide Above]

This slide (Quarterly Earnings Highlights) is critical to this analysis as it most clearly demonstrates the dramatic improvement in Stamen's profit-generating capability . In line with revenue growth, gross profit reached 851 million yen (+24.8% YoY), maintaining an exceptionally high gross margin of 74.7% . Furthermore, the operating profit margin rose significantly from 6.7% in the same period last year to 11.2% (+4.5pt improvement) . This reflects the onset of operating leverage —a hallmark of the SaaS business model—combined with the tangible results of optimizing selling, general, and administrative (SG&A) expenses, including advertising costs.

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2. Flagship Business "TUNAG": ARR of 3.49 Billion Yen and Diversified Revenue Base

The employee engagement business "TUNAG" remains the core driver of the company's performance. As of the end of Q2, ARR (Annual Recurring Revenue) grew to 3.49 billion yen (+0.62 billion yen YoY) .

① Trends in Number of Client Companies and Average MRR

• Number of Client Companies : Reached 1,460 , an increase of 265 companies YoY.
• Average MRR (Revenue per Customer) : Remained at a high level of 199,000 yen .

Adoption is spreading across a wide range of organizations, from large enterprises to small and medium-sized businesses, including those with non-desk workers. The company continues to build a stable revenue base while keeping churn rates at a low level.

② Diversification of Revenue Structure (Establishment of Stock and Flow)

Quarterly sales for TUNAG reached 979 million yen (+25.6% YoY) . Regarding the revenue structure, platform revenue (stock revenue) , primarily consisting of monthly subscription fees, accounted for the majority at 912 million yen (+23.8% YoY) , with a high stock revenue ratio of 88.2% . Meanwhile, professional service revenue (flow revenue) , which includes implementation support and operational consulting, also saw rapid growth at 67 million yen (+55.9% YoY) . The company is successfully building a multi-layered revenue base supported by both the stability of stock revenue and the growth of flow revenue.

③ Advertising Expenditure Policy and Efficiency

Advertising expenses for Q2 were approximately 132 million yen (including web advertising and trade show participation). The company has shifted from a strategy of quantitative expansion to an efficient operational policy that strictly evaluates the Return on Investment (ROI) for each channel, which has been a major driver of improved profit margins.

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3. Launch of New Growth Strategy: "TUNAG AX"

To further differentiate TUNAG and increase unit prices, Stamen has launched a new BPaaS-type AI service, "TUNAG AX."

[Significance and Context of the Slide Above]

This slide illustrates the evolutionary direction of Stamen's product strategy , which goes beyond simple feature additions. While traditional generative AI applications often focus on individual use or isolated task efficiency, TUNAG AX is innovative in its ability to integrate a company's proprietary data (quantitative and qualitative) with existing systems using AI .

Specifically, by cross-analyzing internal HR and sales data (quantitative) with daily reports, thank-you cards, and internal inquiries exchanged on TUNAG (qualitative), the platform provides advanced solutions such as:

• Early Detection of Resignation Risks : Identifying subtle behavioral changes to establish early support systems.
• Visualization of Correlation between Posting Frequency and Sales by Branch : Quantifying the relationship between organizational engagement and business outcomes.
• Automation of Field Operations : Automating notifications, reminders, and application/approval workflows.

Through this, TUNAG is evolving from a mere "internal communication tool" into a "data-driven organizational improvement and business automation platform."

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4. Rapid Growth of the Second Pillar: "FANTS" Business

The community engagement business "FANTS" is growing rapidly as a platform for supporting fan communities and online salons.

• ARR : Expanded to 480 million yen (+210 million yen YoY).
• Number of Managed Communities : 667 (+253 communities YoY; +60 QoQ).
• Average MRR : Remained steady at 60,000 yen .
• Quarterly Sales : 151 million yen (+35.5% YoY) .
• Stock Revenue Ratio : Dramatically improved from 51.0% in the same period last year to 77.2% (+26.2pt increase) .

FANTS has strengthened its management dashboard for community owners, enabling the visualization of membership turnover, engagement scores, and customer enthusiasm, thereby creating a mechanism that directly contributes to the owners' revenue growth. The sharp rise in the stock ratio has significantly improved the profitability of the entire business segment.

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5. Financial Soundness and Cash Flow Generation

Stamen's financial foundation is extremely sound, with sufficient cash on hand to support business growth.

• Equity Ratio : Increased from 60.5% at the end of FY2025 to 62.6% .
• Current Ratio : Maintained a high solvency level of 200.3% .
• Cash and Cash Equivalents : 1,179 million yen (+73 million yen from the end of the previous fiscal year).
• Free Cash Flow (FCF) : 146 million yen positive for Q2 alone (up from 56 million yen in the previous quarter).

The accumulation of stable operating cash flow is directly linked to the expansion of free cash flow, increasing the capacity for investment in proprietary product development and new business ventures.

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6. Upward Revision of Full-Year Earnings Forecast: Operating Profit Raised by 37.5% to 550 Million Yen

Following first-half results that significantly exceeded initial plans, the company announced an upward revision to its full-year earnings forecast for the fiscal year ending December 2026 .

[Significance and Context of the Slide Above]

This slide represents the biggest surprise and key focus point for investors in this earnings announcement. While the revenue target (5,155 million yen) remains unchanged from the initial plan, the company has significantly revised its profit targets upward by approximately 37% .

• Net Sales Forecast : 5,155 million yen (unchanged)
• Operating Profit Forecast : Previous 400 million yen → Revised 550 million yen (+150 million yen / +37.5%)
• Ordinary Profit Forecast : Previous 406 million yen → Revised 558 million yen (+152 million yen / +37.4%)
• Net Income Forecast : Previous 266 million yen → Revised 366 million yen (+100 million yen / +37.6%)

Factors for Revision and Seasonality (Second-Half Weighting)

The upward revision is driven by improved profit margins in both the TUNAG and FANTS businesses and the optimization of company-wide marketing costs. Note that the company's SaaS business has a seasonal tendency for sales and profits to be weighted toward the third (Q3) and fourth (Q4) quarters due to corporate personnel changes and budget cycles. With a 42.2% progress rate toward the revised full-year operating profit (550 million yen) as of the first half, the company is in an extremely strong position heading into the peak demand season in the second half.

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Summary (Overview of the Sustainable Growth Story)

The growth story of Stamen, clarified through this earnings announcement, can be summarized as follows:

1. Stable Growth of Flagship SaaS (TUNAG) : Steadily accumulating customers and stock revenue while maintaining a high-margin business structure.
2. Pursuit of Cost-Effectiveness : Generating operating profit faster than revenue growth through the optimization of advertising expenses.
3. Differentiation in New Domains (TUNAG AX / BPaaS) : Aiming to reduce churn and increase unit prices through AI-driven automation and sophistication of field operations.
4. Rapid Expansion and Profitability of Sub-business (FANTS) : Significant contribution to profitability as a second revenue pillar due to the rising stock ratio.
5. Continuous Revenue and Profit Growth : Transitioning to a high-quality, profit-oriented growth phase, aiming for seven consecutive years of increased revenue and profit .

Stamen's business development, which combines a solid revenue base with AI technology to achieve both profitability and growth, will continue to attract significant attention.