LiNKX FY2026 Full-Year Financial Results: Record-High Revenue and Operating Profit! A Deep Dive into the Next-Gen Modernization Strategy Accelerated by the 'AXcelerator' Solution and AI Partnerships

LiNKX Inc. (Securities Code: 584A) announced its financial results for the fiscal year ended June 2026 (FY2025) on August 14, 2026. Leveraging its high-level engineering expertise in the mission-critical system modernization market, the company achieved record-highs in both revenue and operating profit , surpassing its initial full-year forecasts across all profit metrics.

This report provides a comprehensive analysis of the company's financial results, growth drivers, the progress of its proprietary 'AXcelerator' solution, its AI partnership with Kyndryl Japan, and its future growth strategy.

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1. FY2026 Full-Year Financial Highlights: Record Performance and Forecast Outperformance

First, we provide an overview of the key financial figures for FY2025, which underscore the company's rapid growth and high profitability.

The slide above summarizes the key financial results and KPIs achieved in the fiscal year ended June 2026. Revenue reached 1,909 million JPY (+39.0% YoY) , and operating profit hit 456 million JPY (+35.7% YoY) , demonstrating robust top-line growth. While the operating profit margin saw a slight year-on-year decline of 0.6 percentage points to 23.9% due to investments in proprietary solution development and the strengthening of corporate functions for its public listing, the company maintains a high level of profitability.

The number of high-end engineers, the backbone of business growth, reached 103 (+31 from the previous year-end) , with recruitment and training progressing according to plan. Furthermore, reflecting their advanced technical capabilities, average annual revenue per engineer rose to 23.04 million JPY (+0.1 million JPY YoY) , highlighting the company's strength in achieving both headcount expansion and higher unit prices.

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2. Detailed Profit and Loss Analysis and Forecast Outperformance

Next, we examine the degree of achievement against the full-year forecast and the details of the income statement.

As shown in this slide, all major financial indicators exceeded the full-year forecasts : Revenue (1,909 million JPY, +0.4% vs. forecast), Operating Profit (456 million JPY, +12.3% vs. forecast), Ordinary Profit (440 million JPY, +19.7% vs. forecast), and Net Income (297 million JPY, +29.9% vs. forecast).

The cost of sales ratio remained at 50.0% (gross profit margin of 50.0%), consistent with the previous year. Selling, General, and Administrative (SG&A) expenses increased by 43.9% YoY to 497 million JPY due to the strengthening of corporate structures for the IPO and increased personnel costs. However, the revenue growth driven by business expansion more than absorbed these costs, leading to a significant increase in profit. Even after accounting for non-operating expenses related to the listing (17 million JPY), the company demonstrated a high growth rate in bottom-line profit.

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3. Evolution of Business Model and Revenue Structure (Expanding from Flow to Stock)

The company's business model centers on the modernization of mission-critical systems (such as core banking systems) for financial institutions and other sectors. The business process follows these steps:

1. PoC (Proof of Concept) & Consulting Phase (Support period: approx. 3–6 months, 1–3 members)
2. Main Development Phase (Support period: 6 months to several years, 5–15 members)
3. Maintenance, Operations, and Proprietary Product Licensing (Long-term customer support and recurring revenue)

Looking at the revenue breakdown by type for FY2025, flow-based revenue from system development projects accounted for 1,825 million JPY (95.6% of total), while stock-based revenue from ongoing support and proprietary product deployment grew to 84 million JPY (4.4% of total). This is a steady increase from the previous year's 28 million JPY (2.1%) in both absolute value and percentage, marking the initial success in stabilizing the mid-to-long-term revenue base.

Furthermore, by modernization type, "Cloud & AI-based" projects accounted for the majority at 1,874 million JPY (98.2%). However, starting this fiscal year, "AX-based modernization" revenue using proprietary solutions reached 35 million JPY (1.8%) , signaling a transition into a new growth phase.

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4. Full-Scale Deployment of Proprietary Solution "AXcelerator"

The proprietary solution "AXcelerator" plays a critical role in the company's future margin improvement and differentiation.

The slide above illustrates the overview and key functions of "AXcelerator." Many Japanese companies, particularly financial institutions, struggle with legacy systems written in COBOL or Assembler that have become "black boxes" due to years of modifications, making the lack of design documentation and difficulty in understanding specifications major obstacles to modernization.

"AXcelerator" leverages the company's proprietary AI technology to dramatically streamline the following three processes:

• ① Visualization of Structure : Analyzes legacy languages to automatically generate design documents from existing code and clarifies dependencies between systems.
• ② Analysis and Evaluation : Identifies dependencies and modification risks, and verifies the consistency between converted code and existing processes.
• ③ Reconstruction and Conversion : Executes refactoring, "Code to Code," and "Spec to Code" conversions, and supports the automatic generation of test scenarios.

During this fiscal year, the company secured numerous paid PoC projects using "AXcelerator" (for regional banks, major insurance companies, and core system vendors) and won a main development project for the visualization of a regional bank's core system (commencing August 2026) . This proves that "AXcelerator" functions not merely as an experimental tool, but as a powerful hook for securing commercial-scale development projects.

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5. Key Business Highlights and Strategic Partnerships

The company's major business achievements this fiscal year are summarized as follows:

1. Deepening Engagement with Regional Banks and Financial Institutions (e.g., Hokkoku Bank's "BankWill" project)
   • Prioritizing development support for the first launch (scheduled for January 2027) of Hokkoku Bank's next-generation core system, "BankWill." In partnership with BIPROGY and the CCI Group, the company is responsible for developing automatic conversion tools for legacy programs and multi-cloud migration.
2. AI Partnership with Kyndryl Japan (Capital and Business Alliance)
   • In May 2026, the company established an AI partnership centered on a capital and business alliance with Kyndryl Japan. By providing LiNKX's high-end engineers and "AXcelerator" to Kyndryl's extensive customer base, the company aims to expand its channels across industries including megabanks, major insurance, manufacturing, and government agencies.
3. Acquisition of Top-Tier High-End Engineers
   • Following rigorous recruitment processes such as coding tests, the company achieved a net increase of 31 high-end engineers during the fiscal year (maintaining a low turnover rate of 8.0%). Increased brand recognition following the IPO has also contributed to stronger recruitment capabilities.

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6. Growth Momentum in Quarterly Trends

Quarterly performance trends further highlight the speed of the company's growth:

• Revenue Trend : FY2025 Q1 (418 million JPY) → Q2 (468 million JPY) → Q3 (498 million JPY) → Q4 (523 million JPY) , showing steady quarter-on-quarter growth. Q4 alone reached a 39.3% increase year-on-year.
• Employee Count Trend : Expanded from 79 at the end of Q1 to 122 at the end of Q4 (including 103 high-end engineers) . The dynamic where engineer acquisition directly translates into revenue growth is functioning effectively.

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7. Growth Strategy and Outlook for FY2027 (Ending June 2027)

The company plans to continue its aggressive growth strategy in the upcoming fiscal year ending June 2027 (FY2026). Key focus areas include:

• Success of Hokkoku Bank's "BankWill" and Horizontal Expansion : Aiming for a successful first launch in January 2027, followed by support for the second launch and horizontal deployment to other banks.
• Full-Scale Collaboration with Kyndryl Japan : Jointly building pre-sales and FDE (Field Development Engineer) structures to secure large-scale AI modernization projects.
• Accelerating "AXcelerator" Growth : Aiming to secure several core system development projects annually while establishing a "solution-usage-based" stock revenue model that combines fixed monthly fees with usage-based billing (based on the number of steps).
• Further Expansion of Engineering Organization : Planning to add 33 new high-end engineers (assuming an 8.7% turnover rate).

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8. Summary

LiNKX's FY2026 financial results clearly demonstrate that the company is gaining market support by addressing the deep-seated social issue of legacy systems with its high engineering capabilities and the advanced AI solution "AXcelerator."

Building a solid customer base through its high-growth flow-based business while shifting toward a high-margin, stock-based revenue structure by integrating its proprietary products, the company's growth story is a notable development in the system modernization market.