Minkabu The Infoid, Inc. Q1 FY2027 Earnings Analysis: Rapid Expansion of Recurring Profits in Solutions Business and the Full Scope of Mid-to-Long-Term Growth Strategy

Minkabu The Infoid, Inc.’s financial results for the first quarter (Q1) of the fiscal year ending March 2027 reflect a temporary decline in earnings driven by external factors—specifically a sharp drop in advertising unit prices within financial media. However, the results clearly demonstrate a qualitative evolution of the business foundation, supported by significant growth in recurring revenue within the Solutions business , which serves as the company's primary growth driver.

This report provides a detailed analysis of the performance highlights, segment trends, and future growth narrative, focusing on 10 key topics extracted from the disclosed earnings materials.

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1. Earnings Overview: Impacted by Lower Ad Rates, Full-Year Guidance Maintained

Consolidated results for Q1 FY2027 were as follows: Net Sales of 1,944 million JPY (down 10.1% YoY) , Operating Profit of 16 million JPY (down 82.1% YoY) , and EBITDA of 275 million JPY (down 6.1% YoY) .

The primary factor behind the year-on-year decline was a sharp drop in advertising unit prices due to bot-mitigation measures in financial media and changes in Google’s ad placement standards. Nevertheless, as various improvement measures began to show a recovery trend in unit prices by the end of Q1, and given the sustained growth of the Solutions business, the full-year earnings forecast (Net Sales of 9,000 million JPY, Operating Profit of 720 million JPY) remains unchanged .

2. Segment Analysis: Growth in "Recurring Profits" Signaling Qualitative Transformation

A breakdown of earnings reveals that the company’s revenue structure is shifting toward a more profitable and stable model.

The slide above provides critical data on Q1 FY2027 segment performance compared to the same period last year . The presentation of this data aims to prove the "qualitative improvement in revenue structure," which is not immediately apparent from superficial figures such as the top-line revenue decline (1,944 million JPY, -10.1% YoY) or the drop in operating profit (16 million JPY, -82.1% YoY).

Key takeaways include:

• Solutions business recurring profit surged by 43.4% YoY (from 64 million JPY to 93 million JPY) : Cumulative revenue streams, such as Kabutan subscriptions and information solutions/SI, are strongly driving profit growth.
• Background of the decline in spot sales : While spot sales in the Solutions business fell 37.9% YoY, this was a planned reaction to large-scale orders received in the previous fiscal year.
• Media business resilience : Despite an 18.0% YoY decline in traffic-based advertising (network ads), the Media business as a whole secured 47 million JPY in segment profit , validating the effectiveness of structural reforms.

3. Cost Management and Strengthening the Financial Foundation

The company continues to implement rigorous cost controls to maintain and improve profitability. As a result of fixed cost reductions, including the relocation of the head office , company-wide costs (head office costs) were compressed from 200 million JPY in the same period last year to 190 million JPY (a 5.1% decrease).

Regarding the financial position, the company executed debt repayments based on FY2026 free cash flow (FCF) in accordance with agreements with its banking syndicate. Short-term borrowings were reduced by approximately 470 million JPY to 7.02 billion JPY . Consequently, despite recording a net loss (35 million JPY) in Q1, the equity ratio improved by 0.4 percentage points from 14.2% at the end of the previous fiscal year to 14.6% , due to the compression of total assets. Furthermore, the company has completed the rollover of short-term borrowings maturing in June 2026 to June 2027, ensuring stable cash flow management.

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4. Growth Strategy ①: Global Expansion and "Information x Trading" Collaboration with TradeWorks

For a company targeting an "annual operating profit growth rate of 30%," the core of its mid-to-long-term strategy lies in the global expansion of its Solutions business and the scaling of its data platform.

This slide illustrates the concrete vision for "Overseas/AI expansion" through a strategic partnership with TradeWorks Co., Ltd. The primary competitive advantage lies in the seamless integration of "investment information provision (Minkabu)" and "trading execution infrastructure (TradeWorks)," rather than merely providing content.

Key reasons for the importance of this initiative:

• First overseas project (for a Thai securities firm) scheduled to launch in Summer 2026 : The company aims to horizontally deploy the "Information x Trading" scheme established in Japan to the Asian and Middle Eastern markets.
• Joint construction of an AI-native data foundation : By integrating Minkabu’s "Kabutan behavioral history data and structured financial data" with TradeWorks’ "transaction data," the company is building an inimitable "AI financial data foundation" to drive high-value data sales and upselling to institutional investors and quants.
• Sustainable expansion of recurring revenue : The company is building a structure to capture highly reproducible recurring revenue from overseas markets, such as ID-based subscription fees and data usage fees from foreign financial institutions.

5. Growth Strategy ②: Securing 100,000 "Kabutan Premium" IDs via Securities Tie-ups

For its flagship media for individual investors, "Kabutan," the company is launching a powerful growth engine: a tie-up scheme with major securities firms (B2B2C) , in addition to traditional organic individual subscriptions (B2C).

The slide above outlines the roadmap to exponentially expand "Kabutan Premium IDs" through collaboration with securities firms .

Strategic implications of this data include:

• Strong market tailwinds : With the rapid increase in NISA accounts (approx. 30 million) and the expansion of the individual stock-holding population (approx. 16 million), Kabutan’s monthly active users have reached approx. 6 million, with approx. 1 million heavy users.
• Introduction of a new tie-up scheme : A mechanism has been established where, if a user meets certain trading conditions at a partner securities firm, the securities firm covers the cost, allowing the user to access "Kabutan Premium" for free . This is a win-win-win model: users gain a free service, securities firms acquire high-quality customers, and Minkabu secures stable B2B2C revenue.
• Significant room for expansion : The company has set a goal within five years to increase the current 20,000+ premium user base to 10% of its 1 million heavy user base (100,000 IDs), which is expected to dramatically accelerate recurring revenue. Tie-ups with one major online securities firm each for U.S. and Japanese stocks are scheduled to begin within this year.

6. Growth Strategy ③: The Full Scope of "Kabutan Market AI" for Financial Institutions

Leveraging its reliable primary financial information assets, the company has begun offering "Kabutan Market AI," a generative AI solution for financial institutions .

To address the primary barriers to AI adoption in finance—such as "inability to create prompts" and "hallucination risks"—the company has standardized features like a Prompt Generator (GEN) and RAG x Verification Design (fact-check function) . By explicitly citing sources, the company ensures the reliability required for professional use by securities firms, asset managers, and banks. Moving forward, the company plans to expand advanced functions such as CRM integration and overseas report creation support, building an ID-based recurring revenue model.

7. Diversification of Media Business and Exploration of New Domains (IR, IP, B2B)

In its effort to move away from advertising dependency, the Media business is strengthening non-traffic-based revenue .

1. Environmental & Sustainability IR : Through a partnership with Inex Co., Ltd., the company is leveraging "Kabutan" as a touchpoint for individual investors to provide ESG articles and sustainability IR support, offering high-value services that reinforce the "communication power" of listed companies.
2. Growth in Video & IP : YouTube views for "SOCCER KING" reached a record high of approx. 47 million in June 2026 (a 1,220% increase compared to a typical month) . In addition to expanding video production contracts for external platforms, the company is establishing non-advertising revenue sources through creator IP development, such as original e-books using Amazon KDP (150 titles published to date).
3. B2B Recurring (IRwith / OWNED+) : Adoption of the IR communication platform for listed companies, "IRwith," is progressing, with a goal of acquiring 300 companies within three years, accelerating the shift toward SaaS-type recurring revenue.

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8. Conclusion and Summary

Although consolidated results for Q1 FY2027 were dampened by a temporary decline in financial advertising unit prices, the qualitative transformation of the business foundation is proceeding extremely smoothly .

In particular, with a 43.4% YoY increase in recurring profit in the Solutions business, the plan to reach 100,000 Kabutan Premium IDs through securities tie-ups, the overseas/AI collaboration with TradeWorks, and the entry into the generative AI field with "Kabutan Market AI," the company is clearly executing its strategy toward 30% annual operating profit growth . These results confirm that the company is steadily evolving into a high-margin, recurring-revenue enterprise while absorbing the impact of short-term external environmental factors.