Money Forward,Inc. Q1 FY2026 earnings call

Growth Drivers of Business Segment

• ARPA improvement from SMB price adjustment: Average revenue per account (ARPA) for SMB customers increased 17% YoY, driven by a base price adjustment for SMB plans. This allowed the segment to boost revenue growth independent of customer count increases.
• Stable customer growth via the professional channel: Money Forward recorded a record 9,918 net new corporate customers in the quarter, a historically slow season for enterprise SaaS. Growth is supported by a referral channel built on professional networks including tax accountants and accounting firms. This channel delivers consistent lead generation that is less sensitive to advertising market conditions and seasonal fluctuations, providing a stable foundation for customer base expansion.
• Sub-1% churn rate sustains scalable growth: The segment maintains a monthly churn rate of 0.8%, which is below the 1% threshold widely considered excellent for SaaS businesses. This low churn creates a structure where acquired customers accumulate steadily, supporting long-term recurring revenue growth.

Upcoming Growth Initiatives

• The new AI-powered service マネーフォワード AI Cowork is scheduled to launch in July 2026. The service autonomously handles back-office tasks including accounting, labor, and legal work via natural language conversation, and is natively integrated with マネーフォワード クラウド. Offering this AI service to the existing corporate customer base is expected to further lift ARPA and maintain high retention.

Total company revenue for the 1Q FY2026 (December 2025 to February 2026) was 14.67 billion yen, up 42% YoY. Quarterly operating profit hit a record high of 0.17 billion yen, compared to a 0.58 billion yen loss in the prior-year period. The core Business segment led overall company growth, with revenue up 59% YoY. Within the Business segment, transaction/flow revenue grew 200% YoY, while the high-recurring core corporate stock revenue grew 37% YoY. Total corporate annual recurring revenue (ARR) for the segment was 33.7 billion yen.

No specific revised full-year guidance is provided in the summary. Management frames the Business segment's growth as high-quality, driven by highly repeatable growth drivers that position the segment to sustain strong growth going forward. The key performance milestone to monitor is whether the company can maintain high overall growth while closing the customer acquisition gap with competitor freee.

• Competitor freee outperformed Money Forward on net new corporate customer growth by approximately 1,000 customers in the most recent reporting period, leaving room for improvement in customer acquisition competition. There is ongoing pressure to close this gap while maintaining the segment's current high growth rate.

No formal question and answer section is included in the provided earnings summary transcript.