NEXYZ.Group Q3 FY2026 Earnings Deep Dive Report

NEXYZ.Group (Securities Code: 4346) reported strong results for the third quarter of the fiscal year ending September 2026. Both its core Embedded Finance business and its second growth engine, the Media Promotion business , performed robustly, leading to an upward revision of earnings forecasts and an increase in shareholder returns (dividend hike).

This report extracts 10 key topics from the disclosed earnings materials to provide a comprehensive analysis of the company's current performance highlights, growth-driving alliance strategies, and mid-to-long-term new growth areas.

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1. Earnings Summary and Upward Revision of Full-Year Forecasts and Dividends

For the first nine months of the fiscal year ending September 2026 (October 2025 – June 2026), the company achieved consolidated results that significantly exceeded the previous year's progress across all metrics: net sales, operating profit, and quarterly net profit. Consequently, the company has upwardly revised its full-year earnings and dividend forecasts for FY2026 .

As shown above, net sales have been revised upward to 33,000 million yen (+16.1% YoY) , and operating profit to 2,200 million yen (+20.8% YoY) . Backed by this strong performance and confidence in future growth, the year-end dividend forecast has been significantly increased by 10 yen to 30 yen per share , up from the previous forecast of 20 yen.

This upward revision is one of the most critical indicators in this earnings report, demonstrating that the company is steadily achieving five consecutive years of revenue and profit growth while maintaining a management stance that prioritizes capital efficiency and shareholder returns.

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2. Q3 Consolidated Earnings Summary and Profit Drivers

The consolidated results for the first nine months are as follows:

• Net Sales : 21,669 million yen ( +8.4% YoY )
• Operating Profit : 1,218 million yen ( +13.3% YoY )
• Ordinary Profit : 899 million yen ( -13.9% YoY )
• Quarterly Net Profit Attributable to Owners of Parent : 657 million yen ( +160.3% YoY )

Background on Ordinary and Net Profit Fluctuations

A notable feature of the profit structure in this report is the decline in ordinary profit alongside a sharp increase in quarterly net profit . The primary factor for the decline in ordinary profit is an increase in non-operating expenses, including investment losses under the equity method (202 million yen) . However, the full-year ordinary profit forecast (1,900 million yen) remains unchanged, as these are described as transitory factors.

Conversely, the quarterly net profit surged to over 2.6 times (+160.3%) the previous year's level, driven by the recording of 2,015 million yen in extraordinary income from the sale of investment securities as part of asset optimization. In addition to the steady 13.3% growth in operating profit—which reflects the company's core earning power—this extraordinary income significantly boosted the bottom line.

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3. Embedded Finance Business: Growth of Key Products and the "2027 Air Conditioner Issue"

The company's core Embedded Finance business (equipment installation support service "Nexyz.Zero") recorded 17,913 million yen in net sales (+10.6% YoY) and 1,118 million yen in segment profit (+8.1% YoY) , driving the growth of consolidated results.

This slide illustrates the sales trends of the major products handled by Nexyz.Zero and is crucial for understanding the substance of the company's growth.

Sales Trends and Expansion Factors by Product

1. LED Lighting : Sales of 4,895 million yen ( +3.1% YoY ) While a mature market, it continues to perform steadily as a foundational product by capturing reliable replacement demand.
2. Air Conditioning Equipment : Sales of 3,990 million yen ( +30.9% YoY ) Q3 alone recorded a record high of 1,884 million yen . This is driven by a surge in demand for energy-efficient, eco-friendly air conditioning units ahead of the 2027 designated CFC regulations (known as the "2027 Air Conditioner Issue" ). The company's strengthened proposal-based sales approach has proven successful.
3. Industrial Equipment : Sales of 1,427 million yen ( +74.2% YoY ) Significant growth was achieved through the delivery of large-scale industrial equipment, such as cubicles (high-voltage power receiving equipment).

This confirms that "Nexyz.Zero," which allows for the installation of the latest equipment with zero initial investment, strongly aligns with the needs of businesses facing legal and environmental compliance challenges.

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4. Expansion of Financial Institution Networks and Shifts in Sales Channels

The core of the company's alliance strategy is the strengthening of partnerships with regional banks and credit unions nationwide .

The total number of partner financial institutions has expanded to 171 (up 36 YoY) , with 11,748 branches covered. In particular, collaboration with credit unions has accelerated following the partnership with the Shinkin Central Bank, with the number of partner credit unions reaching 92 (up 26 YoY).

The sales channel analysis slide above demonstrates that the company's business model has undergone a structural shift from "reliance on direct sales" to "financial institution-led alliances."

Implications of the Increased Ratio of Financial Institution Referrals

The composition ratio of referrals from financial institutions rose significantly from 49.4% in the previous year to 57.4% (+8.0pt) . With approximately 60% of sales channels now coming through financial institutions, the following benefits have emerged:

• Improved Credit Accuracy and Sales Efficiency : By receiving referrals of reputable corporate clients from local financial institutions, the company achieves a high closing rate and a low-risk sales process.
• Diversification of Customer Base (Shift to Manufacturing/Construction) : In addition to the traditional focus on the restaurant (13%) and retail/service (18%) sectors, the manufacturing and construction sectors have risen to 22.6% (+4.0pt YoY) . The company has successfully approached industries with large-scale equipment installation needs.

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5. Sustainability Contribution Through Business (Decarbonization Achievements)

The proliferation of energy-saving equipment through "Nexyz.Zero" is directly linked to social value in terms of environmental impact through CO2 emission reductions.

• Cumulative CO2 reduction as of end-June 2026 : 2.675 million t-CO2
• Progress toward 2030 target (4 million t-CO2) : 66.8%

This scale is equivalent to the annual CO2 emissions of a population of approximately 400,000, demonstrating that the company's services contribute significantly to the ESG management and decarbonization (GX) efforts of its client companies.

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6. Media Promotion Business: Deepening the "Accel Japan" Business

The second pillar of consolidation, the Media Promotion business , achieved 3,696 million yen in net sales and 823 million yen in segment profit (+10.5% YoY) . The talent image sharing service "Accel Japan," operated by subsidiary Brangista, maintains strong performance.

Sophistication of Revenue Structure and Future Measures

1. Launch of New High-Unit-Price Plans : The company has launched upselling measures that allow for ambassador utilization with the same impact as exclusive contracts, significantly expanding advertising expressions beyond previously provided materials. Customer unit prices and high-margin renewal sales are increasing.
2. Expansion of Ambassador Roster : Three new ambassadors, including Mokomichi Hayami, Ritsuko Tanaka, and Takeru, have been added. From September 2026, the company will transition to its largest-ever structure of 25 ambassadors (23 groups) . This is expected to further enhance coverage of target industries such as food, real estate, and sports.

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7. New Growth Area: "Kagami Gate," an Infrastructure for "IP (Intellectual Property) x Generative AI"

As a seed for mid-to-long-term growth, the company is developing "Kagami Gate," an infrastructure platform that connects intellectual property (IP) with generative AI.

Business Objectives and Market Background

While the value of Japanese IP assets such as manga, anime, and characters is estimated at over 67 trillion yen in the global market, unauthorized AI training and online piracy losses are estimated at 10.4 trillion yen (2025). "Kagami Gate" functions as a gateway that standardizes "safe IP usage" for AI and companies, balancing real-time monitoring/rights protection with appropriate revenue distribution via generative AI .

Initiatives such as legal AI video generation using "Captain Tsubasa" have already been reported by major media outlets like the Nikkei , and with the tailwinds of the government's "Intellectual Property Promotion Plan 2026" and the Cool Japan strategy, it is expected to grow into a new revenue foundation.

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8. Conclusion and Future Focus Points

NEXYZ.Group's Q3 FY2026 earnings clearly reflect the steady expansion of its core business and the results of its structural reforms.

Key points to watch moving forward include:

1. Capturing Special Demand from the "2027 Air Conditioner Issue" : How much additional demand for air conditioning replacement can be captured in Q4 due to CFC regulations and energy conservation laws?
2. Utilization Rate of Financial Institution Alliances : Can the company further increase the number of referrals from its 171 partner financial institutions to secure large-scale projects in manufacturing and construction?
3. Penetration of New Accel Japan Plans : Expansion of the number of client companies and improvement in ARPU (Average Revenue Per User) following the transition to the 25-talent ambassador structure.
4. Transition of "Kagami Gate" to the Monetization Phase : Progress on the roadmap to grow from the proof-of-concept and media exposure stage into a concrete revenue-contributing business.

With a business foundation supported by a highly recurring revenue model in its core business and an expanding network of financial partners, the company's future progress warrants close attention.