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Innovation, Ordinary Profit Forecast for the Fiscal Year Revised Downward to a Loss

Mon Feb 9, 2026 3:30 pm JST Earnings

3970 Innovation Inc. 【J-GAAP】

Earnings Report

Innovation Inc. <3970> [TSE Growth] announced its financial results after the market closed on February 9th (15:30). The consolidated ordinary profit/loss for the cumulative third quarter of the fiscal year ending March 2026 (April to December) turned into a loss of 440 million yen (compared to a profit of 221 million yen in the same period last year).

In addition, the full-year forecast for consolidated ordinary profit/loss has been revised downward from an expected profit of 340 million yen to a loss of 342 million yen (compared to a profit of 340 million yen in the previous period), turning to a loss outlook.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit/loss for the October to March period (second half) has been revised downward from an expected profit of 667 million yen to a loss of 15 million yen (compared to a profit of 159 million yen in the same period of the previous year), turning to a loss outlook.

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit/loss turned to a loss of 113 million yen (compared to a profit of 40 million yen in the same period last year). The operating profit/loss margin drastically worsened from 3.2% in the same period last year to -6.3%.

Kabutan News

Actual Results

Accumulated Results 3rd Quarter
Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Progress Rate vs. First Half Announce Accounting Standards
Apr - Dec, 2023 3,375 311 315 208 81.4 78.0 Feb 9, 2024 J-GAAP
Apr - Dec, 2024 3,892 226 221 25 9.7 65.0 Feb 10, 2025 J-GAAP
Apr - Dec, 2025 5,029 -366 -440 -437 -164.6 ー Feb 9, 2026 J-GAAP
YoY +29.2% － － － －

Guidance Update

Second Half Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Oct - Mar, 2025 Prev 4,931 651 667 469 175.4 40 Nov 10, 2025 J-GAAP
Oct - Mar, 2025 New 3,711 4 -15 -182 -68.1 40 Feb 9, 2026 J-GAAP
Revision Rate -24.7% -99.4% － － －

Full Year Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Mar, 2026 Prev 8,300 390 340 200 74.8 40 May 12, 2025 J-GAAP
Mar, 2026 New 7,080 -257 -342 -451 -168.7 40 Feb 9, 2026 J-GAAP
Revision Rate -14.7% － － － －

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Oct - Mar, 2024 2,752 166 159 44 16.7 40 May 12, 2025 J-GAAP
Oct - Mar, 2025 Guidance 3,711 4 -15 -182 -68.1 40 Feb 9, 2026 J-GAAP
YoY +34.8% -97.6% － － －

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Mar, 2024 4,813 399 404 244 95.1 40 May 10, 2024 J-GAAP
Mar, 2025 5,343 351 340 67 25.4 40 May 12, 2025 J-GAAP
Mar, 2026 Guidance 7,080 -257 -342 -451 -168.7 40 Feb 9, 2026 J-GAAP
YoY +32.5% － － － －

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Oct - Dec, 2024 1,301 41 40 2 0.8 3.2 Feb 10, 2025 J-GAAP
Jan - Mar, 2025 1,451 125 119 42 15.9 8.6 May 12, 2025 J-GAAP
Apr - Jun, 2025 1,591 -186 -245 -186 -70.3 -11.7 Aug 12, 2025 J-GAAP
Jul - Sep, 2025 1,778 -75 -82 -83 -31.4 -4.2 Nov 10, 2025 J-GAAP
Oct - Dec, 2025 1,660 -105 -113 -168 -63.3 -6.3 Feb 9, 2026 J-GAAP
YoY +27.6% － － － －

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