AViC Q3 FY2026 Earnings Analysis: Record-High Quarterly Operating Profit Driven by Enterprise Expansion and Spica Consolidation

AViC Inc. (Securities Code: 9554) reported exceptional results for the third quarter of the fiscal year ending September 2026. The company achieved significant year-on-year and quarter-on-quarter growth in both revenue and profit, fueled by the steady expansion of orders from core enterprise clients and the contribution from the newly consolidated subsidiary, Spica Inc. (consolidated into the P/L since February 2026).

This report provides a detailed analysis of the company's earnings materials, covering performance highlights, revenue structure, enterprise client acquisition, inorganic growth strategy through M&A, and the future outlook.

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1. Q3 FY2026 Earnings Highlights and Progress

For the third quarter of the fiscal year ending September 2026 (Q3: May–July 2026), the company reported net sales of 1,110 million yen (+59.0% YoY) , operating profit of 320 million yen (+96.6% YoY) , ordinary profit of 312 million yen (+91.9% YoY) , and quarterly net profit attributable to owners of the parent of 206 million yen (+85.1% YoY) .

Slide Commentary: Significance of Q3 Performance (1/2)

The slide above provides critical data summarizing the company's overall performance this quarter. Beyond the rapid YoY growth of +59.0% in sales and +96.6% in operating profit, the company demonstrated sustained momentum with QoQ growth of +7.2% in sales and +15.9% in operating profit.

Particularly noteworthy is the improvement in the operating profit margin . It has significantly increased from 23.4% in the same period last year to 28.9% (+5.5 percentage points) , demonstrating the realization of "quality growth," where top-line expansion directly translates into higher margins. The completion of one-time costs associated with the Spica acquisition (approximately 80 million yen in M&A-related expenses) recorded in Q2 also contributed to the sharp recovery in profitability.

Furthermore, the progress against the full-year plan stands at 74.0% for net sales (2,966 million yen cumulative against a 4,008 million yen target) and 70.6% for operating profit (795 million yen cumulative against a 1,127 million yen target), indicating that the company is tracking well against the upwardly revised plan announced in Q2.

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2. Analysis of Record-High Quarterly Operating Profit

The company's quarterly performance trends clearly indicate that its growth momentum is accelerating.

Slide Commentary: Background and Implications of Quarterly Operating Profit Trends

The graph above illustrates the historical trend of the company's quarterly operating profit. The operating profit of 320 million yen in Q3 FY2026 marks the highest quarterly profit in the company's history .

This profit expansion is driven by several overlapping factors:

1. Expansion of Enterprise Transactions : Collaboration with major advertising agencies (such as ADK Marketing Solutions Inc.) and direct sales efforts have led to the continuous acquisition of large-scale projects.
2. Spot Projects and Front-loaded Budget Execution : Contributions from spot projects for certain clients and the front-loading of annual marketing budgets by major clients.
3. Spica’s Contribution and Successful PMI : Spica, consolidated since February 2026, has performed above internal projections, contributing to group-wide profits.

According to the YoY operating profit waterfall analysis, the increase in gross profit from higher sales (+411 million yen) more than absorbed the increase in SG&A expenses, including higher outsourcing costs (+117 million yen), personnel expenses (+38 million yen), and amortization of goodwill (+27 million yen), resulting in a substantial profit increase.

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3. Key Management Indicators and Maintaining High Productivity

AViC emphasizes a management approach that prioritizes "balancing business growth with high productivity" rather than mere scale expansion.

• Sales per Employee : Maintained and improved high productivity at 26.7 million yen for the cumulative Q3 (+41.2% YoY).
• Expansion of Personnel : With 16 new graduates joining in April 2026, the total number of employees on a consolidated basis reached 111 at the end of Q3 (+16.8% YoY, +16 employees) .

By combining talent development with the use of technology, the company successfully balances the rapid integration of new staff with high productivity, ensuring a supply structure that meets increasing demand.

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4. Trends in Enterprise Client Revenue

The acquisition of "enterprise clients" with large marketing budgets is a powerful driver of the company's growth.

In Q3, revenue from enterprise clients grew by +54.0% YoY . While subject to fluctuations based on the timing of spot project recognition each quarter, the trend shows steady, cumulative growth. By utilizing proprietary tools and scientific talent development methods, the company has built a high-quality service delivery system that does not rely on specific individuals, leading to continuous support and replacement wins from major clients.

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5. Acquisition of Spica Inc. and Inorganic Growth Strategy

In January 2026, the company acquired 100% of the shares of Spica Inc. , which operates the "like me" TikTok LIVE liver management business, making it a subsidiary (consolidated into the P/L from February 2026).

Slide Commentary: M&A Structure and Valuation Rationale

The slide above outlines the financial scheme and valuation structure of the Spica acquisition. Key points of this M&A include:

• Disciplined Valuation : Against a share acquisition price of 1.5 billion yen, the Enterprise Value (EV) is 1.15 billion yen after deducting the target company's net cash of 350 million yen. Based on Spica's EBITDA for the fiscal year ended April 2026 (365 million yen), the EV/EBITDA multiple is approximately 3.1x , reflecting a highly disciplined valuation.
• Maintaining Financial Soundness : The 1.5 billion yen acquisition cost was fully funded by bank loans. Post-acquisition, the company maintains a virtually debt-free status with a Net Debt/EBITDA of -0.6x , Net D/E ratio of -0.3x , and an equity ratio of 50% . As the acquisition was executed without equity financing, there was no dilution for existing shareholders.
• Accounting and Amortization : The recorded amount for intangible fixed assets, including goodwill, is 1.18 billion yen, with an amortization period of 11 years. One-time costs were recorded in Q2, and the acquisition is expected to contribute to full-year profits after absorbing goodwill amortization.

Through this M&A, the company has diversified its business portfolio from digital marketing (BtoB) into the creator economy (BtoC), and is currently building a "video marketing ecosystem" that integrates the know-how of both companies.

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6. Market Perception in the Generative AI Era and AViC’s Competitive Edge

While the rise of generative AI and Google's "AI Overviews" has drawn attention to changes in the digital marketing industry, the company views these developments not as a threat, but as a "tailwind that highlights the value it provides."

• Market Environment Changes : The marketing environment faced by advertisers is becoming rapidly more complex and sophisticated due to platform diversification, cookie regulations, and advancements in AI technology. This increases the difficulty for companies to make optimal decisions on their own.
• Competitive Advantage : There is growing demand for a "professional strategic partner" that goes beyond local optimization or product provision to design and pursue KPIs directly linked to the client's ultimate business outcomes (business drive).

In this environment, the company is pursuing "quality growth" (business growth while maintaining or improving high profit margins) by combining organic growth (cross-selling and replacement wins with existing clients) with inorganic growth (M&A) such as Spica and Realation.

Summary

In its Q3 FY2026 earnings, AViC achieved a record-high quarterly operating profit of 320 million yen, driven by steady growth in enterprise clients and successful M&A. The company's management approach, which balances business expansion and high productivity while maintaining a solid balance sheet and borrowing capacity, is functioning well. The earnings results suggest continued potential for long-term corporate value enhancement.