[BRANU Q3 FY2026 Earnings Report] Strong Growth with 39.8% Revenue and 60.0% Operating Profit Increases; Full-Year Guidance Revised Upward as AI Strategy 'BRANU AXIS' Launches

1. Q3 FY2026 Earnings Overview and Executive Summary

BRANU Inc. (460A) , a provider of a construction DX platform, reported exceptionally strong results for the first three quarters of the fiscal year ending October 2026, with both revenue and profit metrics significantly exceeding the same period last year.

• Revenue : ¥2,078 million ( +39.8% YoY)
• Operating Profit : ¥308 million ( +60.0% YoY)
• Ordinary Profit : ¥290 million ( +52.9% YoY)
• Sales Personnel : 76 ( +38.2% YoY)
• Stock-based Service ARR : ¥1,001 million ( +22.4% YoY)
• Stock-based Service License Contracts : 3,330 companies ( +21.4% YoY)

Driven by the aggressive expansion of regional offices, which increased customer touchpoints and accelerated new client acquisition, alongside successful upselling strategies for multi-tiered plans in "CAREECON Plus," the company achieved significant top-line and bottom-line growth. Strong revenue expansion has effectively absorbed the upfront costs associated with hiring and personnel, maintaining high profitability.

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2. Quarterly Performance Trends and Profitability Drivers

In the third quarter (standalone), both revenue and ordinary profit continued to exceed quarterly targets. The slide below illustrates the quarterly trends in revenue and ordinary profit compared to the plan.

Slide Background and Commentary

As shown in the quarterly trend graph, revenue has trended upward in FY2026, rising from ¥545 million in Q1 to ¥749 million in Q2 and ¥783 million in Q3 . Ordinary profit also saw a sharp recovery from Q1 (¥4 million), which was impacted by upfront investments in new graduate and mid-career hiring, to Q2 (¥148 million) and Q3 (¥138 million), maintaining a high level.

Key drivers for this growth include:

1. Success in Regional Expansion : Local hiring at key hubs such as Sendai, Osaka, and Fukuoka has established a localized sales structure, accelerating the pace of new customer acquisition.
2. Increased Revenue per Unit via Upselling : Starting with new customer acquisition (flow) via "CAREECON," the company has steadily progressed in cross-selling and upselling clients to higher-tier plans of the integrated business tool "CAREECON Plus."
3. Maintenance of High Profit Margins : Increased revenue and operational efficiencies have absorbed the fixed cost increases from organizational expansion, resulting in profit levels that exceed initial plans.

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3. Revenue Composition and Key KPI Trends

The company's construction DX platform business consists of two pillars: a flow-based business model (CAREECON) centered on matching media, and a stock-based business model (CAREECON Plus) centered on SaaS-based operational support tools.

• Revenue Mix : Flow-based 63.5% (¥1,319 million) / Stock-based 36.5% (¥758 million)

The organic integration model—reaching a broad base of small and medium-sized construction firms through the flow-based model and providing stock-based services to those same clients—is functioning robustly (a 6:4 revenue balance ).

Key KPI Progress

• "CAREECON" Registered Users : 6,811 users ( +22.2% YoY, +16.5% vs. previous year-end)
• Stock-based Service License Contracts : 3,330 companies ( +21.4% YoY, +15.6% vs. previous year-end)
• Stock-based Service ARR : ¥1,001 million ( surpassed ¥1 billion , +21.3% vs. previous year-end)
• Monthly ARPU : ¥25,055 (maintaining an upward trend from ¥23,883 at the end of the previous fiscal year)
• Monthly Churn Rate :
  • "Mini Plan": 0.33% (stable at an extremely low level)
  • "Upsell Plan (Middle/Standard)": 2.13% (downward trend from 2.51% at the end of the previous fiscal year due to increased utilization of management functions)

The "Middle Plan" introduced in January 2026 has served as a smooth transition point for renewals. By establishing multi-tiered upsell paths tailored to the customer's growth phase, the company has simultaneously achieved ARR accumulation and churn rate suppression.

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4. Strategic Investment in Regional Expansion and Human Capital

Moving away from a Tokyo-centric model, the opening and expansion of regional offices has become a major driver of performance.

• Personnel Trends by Location : From 154 employees in Q4 FY2025, the workforce expanded to 186 in Tokyo, 24 in Osaka, 23 in Sendai, and 5 in Fukuoka by Q3 FY2026. Future plans include opening a Kanazawa branch and expanding the Fukuoka branch.
• Revenue Trends by Branch (CAREECON) : Revenue grew rapidly from ¥321 million in Q1 (Tokyo 195, Osaka 63, Sendai 31, Fukuoka 31) to ¥509 million in Q3 (Tokyo 243, Osaka 113, Sendai 67, Fukuoka 84).

In terms of costs, the company has actively invested in strengthening development capabilities (Q3 development costs: ¥54 million ) and SG&A expenses, including personnel and recruitment/training costs for new graduates and regional hires (Q3: ¥343 million ), as well as inbound advertising, steadily solidifying its mid-to-long-term growth foundation.

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5. Significant Upward Revision of Full-Year Earnings Forecast

Following performance that exceeded expectations through the third quarter, the company has revised its full-year earnings forecast for the fiscal year ending October 2026.

Details and Analysis of the Upward Revision

• Revenue : Previous forecast ¥2,800 million → Revised forecast ¥2,955 million ( +5.5% revision , +39.2% YoY)
• Operating Profit : Previous forecast ¥395 million → Revised forecast ¥469 million ( +18.8% revision , +41.7% YoY, 15.9% operating margin)
• Ordinary Profit : Previous forecast ¥378 million → Revised forecast ¥452 million ( +19.6% revision , +37.7% YoY, 15.3% ordinary margin)
• Net Income : Previous forecast ¥261 million → Revised forecast ¥292 million ( +12.0% revision , +21.0% YoY)

For the fourth quarter (standalone plan: revenue of ¥877 million, ordinary profit of ¥162 million), the company anticipates further productivity gains in development and sales through internal AI utilization, as well as increased efficiency in customer success operations, alongside the expansion of the branch network and the ramp-up of sales personnel. The company expects to reach record-high revenue and profit levels.

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6. AI Strategy "BRANU AXIS" and Future Growth Roadmap

To achieve exponential mid-to-long-term growth, the company has officially launched "BRANU AXIS," a new project to promote Construction AX (AI Transformation).

Innovation and Competitive Advantage of "BRANU AXIS"

"BRANU AXIS" is a strategic initiative that integrates unique data from over 6,800 small and medium-sized construction firms accumulated on the platform with the proprietary construction AI engine, "BRANU BRAIN."

1. Evolutionary Steps :
   • Step 1: "AI Operational Support" to assist with information reading and document creation (Implemented)
   • Step 2: "Agentic AI" that autonomously plans and executes tasks toward specific goals (Currently in progress)
   • Step 3: "Corporate AI (The President's Right Hand)" to support management decision-making
   • Step 4: "Co-creation Network" to enable inter-company collaboration and resource optimization
2. Transition to AI-Driven Development (AIDD) : Since April 2026, AI has been integrated into all stages of planning, design, and implementation, establishing a Single Source of Truth (SSOT). This has significantly increased development speed, reduced costs, and improved quality.
3. Intellectual Property Portfolio (Patent Strategy) : The company has filed patents for a proprietary "Construction-Specific AI Control Process" that prevents hallucination (misjudgment) risks at construction sites and identifies/prevents quality and safety management issues at the process level, building a strong barrier to entry against competitors.

Specific Product Developments

• Culture Matching Function : A system where AI automatically extracts corporate culture from sales/meeting videos and construction performance data, dramatically increasing the accuracy of owned media content and talent matching (CAREECON Job).
• AI Schedule Table : By simply uploading estimates or PDF drawings, the AI reads construction items and automatically generates standard schedule tables, significantly reducing man-hours for site managers.

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7. Conclusion and Mid-to-Long-Term Outlook

BRANU is steadily advancing its mid-to-long-term growth strategy centered on the following three pillars:

1. Foundation Expansion : Expanding the branch network to major cities nationwide (new Kanazawa branch, Fukuoka expansion, etc.) and strengthening collaboration with Watanabe Pipe , a leader in material distribution (expanding from ~35% branch coverage to nationwide).
2. Product Enhancement : Deepening the "All-in-One Platform" to cover construction, procurement, sales, and marketing, with management functions at the core, and promoting upselling.
3. Creation of New Services : Utilizing proprietary data via "BRANU BRAIN" and developing new services such as "CAREECON Job."

With strong current performance momentum and the dual engines of AI-driven productivity gains and new service development, the company is firmly establishing its foundation as a leading company driving DX/AX in the small and medium-sized construction industry.