FUNDINNO Q3 FY2026 Earnings Deep Dive: Strategic Deal Selection Amid Market Shifts and Diversification of Investor Base and Funding Methods

Introduction

FUNDINNO Inc. (Ticker: 462A) , a leader in equity crowdfunding and private equity trading platforms, has released its financial results for the third quarter of the fiscal year ending October 2026.

During this quarter, the company faced a challenging environment characterized by delays in valuation adjustments within the private equity market, shifts in the exit landscape, and the re-evaluation of startup business models following the widespread adoption of AI. Consequently, the difficulty of originating large-scale deals remained at a high level , leading to a decline in revenue and the recording of an operating loss.

However, the company maintains an exceptionally robust financial foundation, supported by a debt-free management structure and ample cash and deposits (¥3.87 billion) . It is steadily advancing the restructuring of its platform to drive long-term GMV (Gross Merchandise Value) growth, including expanding its target base to institutional investors and corporate entities, and implementing a "Common Stock + Shareholders' Agreement" scheme to resolve potential conflicts. This report provides a detailed analysis of the Q3 performance, KPI trends, and the progress of the company's growth strategies.

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1. Q3 FY2026 Earnings Highlights and Profit Structure

For the cumulative third quarter, the company reported a significant year-on-year decline in operating revenue and recorded an operating loss.

As shown in the table above, operating revenue for the first nine months of FY2026 was ¥1,208 million (down ¥624 million, or 34.1% YoY) , and net operating revenue was ¥1,021 million (down ¥633 million YoY) . With SG&A expenses increasing to ¥1,705 million (up ¥209 million YoY) due to upfront investments, the company recorded an operating loss of ¥684 million (compared to an operating profit of ¥159 million in the same period last year) and a quarterly net loss attributable to owners of the parent of ¥876 million .

Primary Factors for Revenue Decline and Operating Loss

The primary factor for the revenue decline was the performance in the core primary segment (FUNDINNO / FUNDINNO PLUS+), where the number of successful large-scale funding deals exceeding ¥1 billion fell to zero , compared to two in the same period last year. Stricter deal origination criteria and difficulties in valuation adjustments directly impacted revenue.

Fixed-Cost Structure and Break-Even Point

The company’s cost structure is fixed-cost oriented , primarily driven by personnel and system development expenses. Operating expenses have been tracking at approximately ¥600 million per quarter (¥639 million in Q3 alone), with a quarterly break-even revenue point of approximately ¥650 million . While a loss was incurred in Q3 because operating revenue remained at ¥309 million, the business model is structured to generate high profit leverage once revenue exceeds the break-even point.

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2. Full-Year Earnings Forecast and Progress

The company announced a revision to its full-year earnings forecast on June 12, 2026 (at the time of the Q2 earnings announcement), with the following targets:

• Consolidated Operating Revenue: ¥1,800 million
• Consolidated Operating Loss: ¥799 million

The progress rate for operating revenue at the end of the third quarter is approximately 67.1% (¥1,208 million / ¥1,800 million) , and the operating loss stands at ¥684 million against the planned ¥799 million, indicating that progress is in line with the revised full-year outlook. For the fourth quarter, the company is focusing on closing existing deals and accumulating new deals through the new schemes described below.

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3. Revenue Trends by Service Segment

The company operates its business model across three segments: "Primary," "Growth," and "Secondary."

1. Primary Segment (FUNDINNO / FUNDINNO PLUS+)
   • Quarterly operating revenue was ¥233 million (down from ¥355 million in the previous quarter). Performance was sluggish due to stricter deal selection and longer consensus-building processes.
2. Growth Segment (FUNDOOR / FUNDINNO GROWTH)
   • Quarterly operating revenue was ¥75 million (down from ¥80 million in the previous quarter). The company continues to support post-funding growth and improve take rates through the shareholder management SaaS "FUNDOOR."
3. Secondary Segment (FUNDINNO MARKET / FUNDINNO MARKET PLUS+)
   • After recording significant results in Q2 via "FUNDINNO MARKET PLUS+" (¥52 million), there were no individual contributions in Q3. However, long-term initiatives as a liquidity platform for private equity are ongoing.

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4. Robust Financial Foundation and Capital Adequacy Ratio

Even during this phase of upfront investment and earnings adjustment, the company maintains an extremely high level of financial health.

• Cash and Deposits: ¥3,873 million (Cash and deposits account for the majority of total assets of ¥4,622 million)
• Interest-bearing Debt: ¥0 (Debt-free management)
• Equity Ratio: 94.7%
• Capital Adequacy Ratio: 602.1% (Significantly exceeding the 120% statutory threshold under the Financial Instruments and Exchange Act)

This abundant net cash and regulatory capital buffer provide a solid foundation that allows the company to patiently continue upfront investments in product development and the cultivation of corporate and institutional investors, even while market conditions remain temporarily adverse.

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5. Key KPI Analysis: GMV Trends and Qualified Investor Network

The trends for GMV (Gross Merchandise Value) and the number of Qualified Investors , the most critical KPIs for measuring platform growth, are as follows:

GMV and Large-Scale Deal Trends

Q3 GMV was ¥1,197 million , lower than both the same period last year (¥4,173 million) and the previous quarter (¥2,229 million). As the graph above shows, while two deals exceeding ¥1 billion were closed in the same period last year, this quarter saw one deal in the ¥500 million to ¥1 billion range and zero deals exceeding ¥1 billion .

The main reasons for the difficulty in deal origination are as follows:

1. Lag in Private Equity Valuation Adjustments : It is taking time to reach price consensus in the private market compared to the decline in multiples in the public market.
2. Verification of AI-Driven Business Substitution Risks : Stricter screening and selection regarding the business continuity and competitive advantages of investee companies.
3. Changes in Exit Structures : Concerns regarding longer investment recovery periods due to shifts in the IPO market environment.

Expansion of the Qualified Investor Network

Meanwhile, the number of Qualified Investors , who serve as the recipients of high-value-added deals, reached 1,919 , maintaining a net increase from the end of the previous quarter (1,895). Despite a reduction due to annual renewals at the end of July (124 members), new registrations have been flowing in at a stable pace of around 150 per quarter, and the renewal rate remains high at 93.9% , consistent with the previous period.

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6. Responses to Market Changes and Mid-to-Long-Term Growth Strategy

In response to changing market conditions, the company is expanding its policy from "systematization based on standardized criteria" to "implementing flexible functions that capture the diversifying needs of issuers and investors."

① FA Support Track Record for Institutional Investors and Corporate Entities (e.g., SkyDrive Investment)

Beyond crowdfunding led by individual investors, the company is strengthening its private placement support (FA function) involving corporate entities and professional institutional investors .

• FUNDINNO acted as an FA to mediate and support the investment in "SkyDrive Inc." (flying car developer) by a fund managed by Resona Asset Management (August 2026).
• Mediated a strategic synergy investment by Zenken Corporation into GRAPHIC Corporation (March 2026).

② Implementation of the "Common Stock + Shareholders' Agreement" Conflict Resolution Scheme

To resolve conflicts between existing shareholders and issuers concerned about down-rounds or an increase in the number of shareholders, the company developed a "funding scheme combining common stock with a shareholders' agreement." This allows for the protection of existing shareholders' rights while meeting investors' needs for angel tax incentives, leading to the discovery of high-quality companies that previously could not be turned into deals.

③ Adoption of Administrative Support Programs and Response to Stock Acquisition Rights

Selected for the Tokyo Metropolitan Government's "Funding Support Program Utilizing Crowdfunding," the company's funding using stock acquisition rights is now eligible for fee subsidies (up to ¥10 million, etc.) starting this fiscal year. The company's shareholder management tool, "FUNDOOR," also supports the management of stock acquisition rights, accelerating the acquisition of early-to-middle-stage companies.

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7. Conclusion and Future Outlook

FUNDINNO's Q3 FY2026 was a transitional period for earnings , impacted by price adjustments in the private market and stricter deal selection. However, the initiatives being promoted in this environment—"diversification of the investor base (institutional and corporate)," "evolution of funding schemes (shareholders' agreements and stock acquisition rights)," and "expansion of exit support (secondary and M&A)"—are efforts to solidify the platform's foundation for the mid-to-long term.

Leveraging its debt-free, abundant cash position of approximately ¥3.87 billion, attention will be focused on the scenario for GMV regrowth and a return to profitability from the next fiscal year onward, as these measures begin to make a full-scale contribution.