ChatPlus Fiscal Year Ended June 2026 Earnings Analysis Report

Following its listing on the Tokyo Stock Exchange Growth Market in July 2026, ChatPlus Inc. (Securities Code: 598A) announced its full-year financial results for the fiscal year ended June 2026, achieving strong growth across all key metrics: revenue, operating profit, and ARR (Annual Recurring Revenue) . In particular, the company's successful transition from a simple inquiry tool to a "Generative AI-powered business execution agent" has significantly improved both gross and operating profit margins.

This report provides a comprehensive analysis of the company's FY2026 performance, including an examination of structural changes in KPIs (ARR, ARPA, and churn rate), the outlook for future growth strategies such as "AI AgentPlus Pro" and "AX Solutions," and the company's shareholder return policy.

---

1. FY2026 Earnings Highlights and Revenue Structure Analysis

■ High Operating Leverage Achieving a 43.4% Operating Margin

ChatPlus's full-year results for the fiscal year ended June 2026 showed revenue of 1.221 billion yen (+19.5% YoY) , operating profit of 529 million yen (+43.4% YoY) , ordinary profit of 524 million yen (+42.2% YoY) , and net income of 346 million yen (+40.9% YoY) .

As shown in the P&L results below, the company has demonstrated "high operating leverage," where the growth rate of operating profit significantly outpaces the growth rate of revenue.

■ Why This Profit Structure Matters

A critical point to note from the slide above is that the operating profit margin has increased by 7.2 percentage points, from 36.2% in the previous fiscal year to 43.4%.

This sharp rise in profitability is driven by the following factors:

1. Robust Recurring Revenue Structure : Recurring revenue accounts for 95.9% of total sales, creating a structure where revenue grows organically through existing contracts while keeping acquisition costs low.
2. Cost Control and Infrastructure Optimization : While revenue increased by 199 million yen, the increase in AWS and generative AI usage fees was limited to 15 million yen , fixed costs such as personnel and rent increased by only 14 million yen , and advertising expenses rose by just 9 million yen .
3. In-house Development and Lean Operations : The company had only 22 employees at the end of the period (13 in sales, 7 in development, 2 in administration) . This in-house development model, which avoids reliance on outsourcing, has contributed significantly to controlling cost of goods sold and SG&A expenses.

---

2. Structural Transformation of Key Performance Indicators (KPIs) and Customer Trends

■ Shifting from "Maximizing Account Count" to "Maximizing ARPA and ARR"

The most notable change in ChatPlus's KPIs is the shift toward a higher value-added customer portfolio.

■ Background and Strategic Significance of Slide Data

The slide above clearly illustrates that the company's growth engine has shifted from "net increase in account count" to "ARR expansion through higher Average Revenue Per Account (ARPA)."

• Account Count by Service : Total accounts decreased slightly from 2,328 in Q4 FY2025 to 2,220 in Q4 FY2026 . This is due to churn in the lower-priced "ChatPlus" plan caused by seasonal factors (such as tax filing periods and short-term campaigns), as well as a strategic migration toward the higher-priced "AI AgentPlus."
• ARR Trends : While the number of accounts is trending downward, ARR has steadily expanded to 1.214 billion yen (+12.7% YoY) . A breakdown shows that the ARR for the high-value "AI AgentPlus" has grown to 534 million yen , now accounting for approximately 44% of the total.

■ Rising ARPA and Extremely Low Churn Rate

Comparing annual ARPA by service, while the traditional "ChatPlus" stands at 320,000 yen , the generative AI-powered "AI AgentPlus" is at 2.533 million yen (approx. 8x higher), and "FAQPlus" is at 2.360 million yen (approx. 7.4x higher), both of which are at extremely high levels.

Furthermore, the monthly churn rate remains exceptionally low: 1.9%–2.1% for ChatPlus, 1.7% for AI AgentPlus, and 0.0% for FAQPlus, confirming that client retention is strong and long-term usage is well-established.

---

3. Expansion of Customer Base and Real-world Implementation Effects

The company's services have been adopted by a broad customer base of 2,220 accounts , ranging from manufacturing firms like Elecom and Zojirushi to companies such as Kagome, Otsuka Pharmaceutical, Sompo Japan Partners, Japan Airlines, and Persol Business Process Design.

• Case Study: Kagome Co., Ltd. : By switching from traditional human-only chat to a hybrid of ChatPlus automated response and human support on their e-commerce site, chat usage increased threefold .
• Case Study: Dome Corporation (Under Armour) : Following the implementation of AI AgentPlus, the generative AI response rate exceeded 90% . Furthermore, sales per visit for users who utilized the chat were approximately 7 times higher than those who did not , proving its effectiveness as a "sales-driving service agent" rather than just an inquiry tool.

---

4. Future Growth Strategy: Evolution into Business Execution AI

■ Launch of New Service "AI AgentPlus Pro"

To further expand ARR and maximize Customer Lifetime Value (LTV), ChatPlus plans to launch its next-generation product, "AI AgentPlus Pro."

■ The Impact of "AI AgentPlus Pro"

Traditional generative AI chatbots focused on "providing the optimal text response to a question." In contrast, the new "AI AgentPlus Pro" functions as an autonomous workflow platform.

1. Autonomous Execution of Business Processes : The AI understands and judges the content of user conversations, automating tasks such as automatic data entry into CRMs like Salesforce or kintone, Slack notifications to staff, and automated email sending in a one-stop manner.
2. Further Increase in ARPA : The target ARPA is set at 3 million yen/year , serving as a powerful upsell product for existing customers already using ChatPlus (320,000 yen) or AI AgentPlus (2.533 million yen).
3. Increased Switching Costs : By integrating deeply with a company's core operations and CRM, it contributes to further reducing churn and maximizing LTV.

■ Hands-on Support via "AX Solution Services"

Concurrently, the company is launching "AX Solution Services," a professional service that provides end-to-end support from the planning and construction of AI agents to their operational integration. This allows the company to capture initial development fees (flow revenue) while building up maintenance fees (stock revenue), comprehensively capturing corporate demand for DX and AX.

---

5. FY2027 Earnings Forecast and Upfront Investment Plan

■ FY2027 Full-Year Earnings Forecast

• Revenue : 1.369 billion yen ( +12.1% YoY )
• Operating Profit : 556 million yen ( +5.0% YoY )
• Ordinary Profit : 556 million yen ( +5.9% YoY )
• Net Income : 359 million yen ( +3.6% YoY )

FY2027 is positioned as a strategic investment period to re-accelerate ARR growth from FY2028 onward , rather than pursuing short-term profit margin maximization. The company plans to actively invest in expanding AI AgentPlus features, recruiting and training high-level talent, product development, and advertising to increase brand awareness.

---

6. Financial Foundation and Shareholder Return Policy

■ Sound Balance Sheet and Cash Flow

As of the end of June 2026, cash and deposits stood at 1.03 billion yen (an increase of 341 million yen from the previous year-end), and operating cash flow was a positive 415 million yen . The equity ratio improved significantly from 43.9% in the previous fiscal year to 57.2% (+13.3pt) , ensuring a sound financial base with virtually no debt and ample liquidity.

■ Significant Dividend Increase Following Listing

While prioritizing growth investment, the company is strengthening shareholder returns backed by its stable cash-generating ability.

• FY2026 Results : Annual dividend of 3.0 yen per share (Payout ratio: 3.5%)
• FY2027 Forecast : Annual dividend of 9.0 yen per share (+6.0 yen increase) (Payout ratio: 12.2% )

Following its listing, the company has established a policy to enhance shareholder returns, aiming to raise the dividend payout ratio to 12.2%.

---

7. Conclusion

ChatPlus's financial results for the fiscal year ended June 2026 demonstrate exceptional profitability and stability, with an operating profit margin of 43.4% and a recurring revenue ratio of 95.9%. While a slight decrease in account count is visible in the short term, this reflects the successful migration to the higher-priced "AI AgentPlus," and ARR continues to grow steadily.

Moving forward, the company aims to enhance long-term corporate value by focusing on "AI AgentPlus Pro," which handles business execution, and "AX Solutions" for hands-on support, thereby driving upsells to existing customers and acquiring new enterprise clients.