【ASIRO Q3 FY2026 Earnings Analysis】Breaking Free from High-Ticket Dependency with 21.6% Underlying Growth, Mid-to-Long Term Profit Expansion, and a 98% Total Payout Ratio

ASIRO, Inc.'s financial results for the third quarter of the fiscal year ending October 2026 (both cumulative and quarterly) demonstrate a successful transition in the company's profit structure while maintaining steady revenue growth, even as it prioritizes infrastructure development and investments for future high-growth phases.

This report extracts 10 key topics from the disclosure materials that investors should monitor, providing a neutral and detailed analysis of current performance, the progress of structural reforms, segment-specific trends, mid-to-long-term growth scenarios, and shareholder return policies.

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1. Earnings Highlights and Full-Year Progress

The consolidated financial results for the first nine months of the fiscal year ending October 2026 (November 2025 – July 2026) are as follows:

• Revenue : 5,312 million JPY ( +5.3% YoY)
• Operating Profit : 964 million JPY ( -18.3% YoY)
• Profit Attributable to Owners of Parent : 635 million JPY ( -22.1% YoY)

For the third quarter alone (May – July 2026), the company reported Revenue of 1,751 million JPY ( +2.9% YoY) and Operating Profit of 313 million JPY ( -4.9% YoY).

Progress against the full-year forecast (Revenue: 7,000 million JPY, Operating Profit: 1,500 million JPY, Net Profit: 980 million JPY) stands at 75.9% for revenue , which is in line with the plan. However, operating profit progress is at 64.3% and net profit at 64.8% . The slightly slower pace in profit is attributed to proactive growth investments (increased headcount, development costs, and new service launches) aimed at driving high growth from the next fiscal year (FY27) onwards.

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2. Transformation of Revenue Structure: Moving Away from High-Ticket Dependency toward Organic Growth

Historically, ASIRO’s revenue structure in the legal media business was somewhat dependent on advertising placements from specific large-scale clients (high-ticket products). However, this fiscal year, the company is intentionally reducing the ratio of these volatile high-ticket products and shifting toward a "stable revenue structure based on organic growth" centered on standard products.

As shown in the slide above, consolidated revenue, excluding the impact of high-ticket products that are susceptible to temporary budget fluctuations, has continued to show strong double-digit growth of +21.6% year-on-year. The growth rates excluding high-ticket products by business segment are as follows:

• Legal Media (Standard Products) : +13.9%
• Legal Alliance : +29.9%
• Legal Protect : +11.2%
• HR Business : +13.8%

As demonstrated, all core businesses are achieving steady revenue growth. While the headline figures show a decline in profit, the underlying trend confirms that the business scale is expanding and the corporate structure is strengthening.

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3. Segment Performance and Initiatives

The status of ASIRO’s business segments in Q3 is summarized below:

① Legal Media Business

• Q3 Revenue : 798 million JPY (-20.6% YoY)
• Q3 Operating Profit : 330 million JPY (-21.6% YoY) Despite a decline in revenue and profit due to continued advertising budget adjustments by large clients, standard products grew steadily (+4.8% YoY). The company is developing new customer acquisition channels, such as creating legal consultation opportunities through comprehensive partnership agreements with local governments (e.g., Takaishi City, Osaka) and strengthening responses to AI search (SGE, etc.).

② Legal Alliance Business (formerly Derivative Media Business)

• Q3 Revenue : 855 million JPY ( +36.4% YoY)
• Q3 Operating Profit : 180 million JPY ( +78.2% YoY) This segment recorded significant growth in both revenue and profit, driven primarily by the job change media "Carythm." Improved efficiency in ad operations boosted profit margins, acting as a key driver that largely offset the profit decline in the media business.

③ Legal Protect Business (formerly Insurance Business)

• Q3 Revenue : 21 million JPY ( +23.5% YoY)
• Q3 Operating Profit : -51 million JPY (Loss narrowed from 54 million JPY in the same period last year) This segment is in a phase of proactive investment for new services such as the legal SaaS "LegalBase" and the individual attorney database "Bennavi crown," alongside the attorney fee insurance "bonobo," with a focus on expanding sales channels through agencies and partners.

④ HR Business

• Q3 Revenue : 77 million JPY ( +45.3% YoY)
• Q3 Operating Profit : -8 million JPY (Loss narrowed from 12 million JPY in the same period last year) Specializing in recruitment for attorneys, legal professionals, and administrative departments, the company has successfully "systematized" the process from registration to placement. The increase in placement fees is contributing to a narrowing of losses.

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4. Mid-to-Long Term Growth Scenario: Targeting 2 Billion JPY in Operating Profit for FY27 and 4 Billion JPY for FY30

ASIRO has designated the current fiscal year (FY26) as an "investment phase for business infrastructure development" and has mapped out a roadmap to accelerate monetization from the next fiscal year.

The company’s mid-to-long-term goals are to achieve approximately 2 billion JPY in operating profit by the fiscal year ending October 2027 (FY27) , and to reach 20 billion JPY in revenue and approximately 4 billion JPY in operating profit by the fiscal year ending October 2030 (FY30) .

This growth is supported by four key drivers:

1. Continuous Growth of Existing Businesses : Stable growth of Bennavi standard products and expansion of the Alliance business.
2. Inter-business Collaboration and Referral Synergies : Monetizing the legal consultation user base of Bennavi by referring them to adjacent markets (HR, real estate, research, finance, etc., which represent tens of trillions of yen in scale).
3. Monetization of New Services : Full-scale launch of legal SaaS and database businesses.
4. Disciplined Investment : Improving profit margins through the optimization of personnel allocation and development investments.

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5. Aggressive Shareholder Returns: Executing a Total Payout Ratio of Approximately 98%

While continuing to invest in growth, the company is implementing highly aggressive shareholder return policies, supported by a robust financial position (equity ratio of 66.5%).

The shareholder return results and plans for the fiscal year ending October 2026 are as follows:

• Annual Dividend : 65 JPY per share (24 JPY interim, 41 JPY year-end forecast) / Total dividend: approx. 459.8 million JPY
• Share Buybacks : 311,800 shares (Total acquisition cost: approx. 497.2 million JPY , completed at the end of June 2026)
• Total Return Amount : approx. 957.0 million JPY (Against a net profit forecast of 980 million JPY, resulting in a total payout ratio of approx. 98% )
• Cancellation of Treasury Shares : All 311,800 acquired shares (4.20% of total issued shares) were fully cancelled on July 31, 2026 .

By raising the dividend payout ratio target from 30% to "40% or more" and combining it with large-scale share buybacks and cancellations, the company is simultaneously improving capital efficiency and preventing the dilution of earnings per share (EPS).

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6. Summary and Future Outlook

ASIRO’s Q3 FY2026 results show that despite a temporary decline in operating profit due to budget adjustments by some large clients, the company is steadily progressing in its "break from high-ticket dependency" and "underlying growth across all core businesses (+21.6% YoY)."

Key points to watch moving forward include:

• The degree of achievement of the full-year plan (7 billion JPY revenue, 1.5 billion JPY operating profit) in Q4.
• Progress in the monetization of proactive investments (new products and alliance expansion) for FY27.
• The sustainability of shareholder return policies, including the ~98% total payout ratio, and trends in capital efficiency.

Following the completion of infrastructure development, attention will be focused on the company's return to a growth trajectory toward its stated operating profit targets of 2 billion JPY and 4 billion JPY in the coming fiscal years.