Money Forward,Inc. Q2 FY2026 earnings call

Core Game Project Updates

• Multiple major game projects are in late-stage development; despite added workload from sudden client change requests, operations remained solid under proper management. All scheduled work for a paused major project with a major overseas game client was completed before the pause, with no negative impact on interim results.
• Revenue growth was driven by strong progress across active major projects, additional work orders from existing projects, and the launch of multiple small and medium-sized development projects starting from the first quarter.
• A new major project (Project E) has been launched, and will gradually contribute to revenue going forward. All major ongoing projects with expected total revenue of over 500 million yen between 2026 and 2027 August fiscal years are progressing well, except for the paused Project D.

1. Game Business Segment:
   • Total revenue: 3.272 billion yen, 17.6% increase year-over-year (YoY). Segment operating profit: 324 million yen, 22.6% increase YoY.
   • Console/PC game development sub-segment: Revenue of 2.71 billion yen, 28.7% increase YoY, contributing 82.8% of total Game Business revenue.
   • Smartphone-related sub-segment: Revenue of 559 million yen, 16.8% decrease YoY, contributing 17.1% of total Game Business revenue.
   • Amusement/pachinko/pachislot-related sub-segment: Revenue of 2 million yen, contributing 0.1% of total Game Business revenue.
2. Other Business Segment:
   • Total revenue: 186 million yen, 49.7% decrease YoY. Segment operating profit: 7 million yen, 86.8% decrease YoY.

Overall consolidated interim results: Total consolidated revenue is 3.459 billion yen, operating income is 331 million yen, ordinary income is 363 million yen, and net income attributable to parent company shareholders is 242 million yen (a large YoY increase driven by the absence of special losses recorded in the prior year interim period).

• Full-year 2026 August fiscal year earnings guidance, including segment-level sales and profit forecasts, is maintained unchanged from the prior announcement.
• Management notes that interim results were solid for both revenue and profit, and there remains potential for additional work orders on major ongoing projects.
• The company is prioritizing early new project awards and smooth launch to maximize resource utilization amid upcoming project transition uncertainty, and will announce any necessary guidance revisions promptly once forecast certainty improves.
• Dividend guidance is maintained: the company targets an annual dividend of 25 yen per share, with a core policy of maintaining stable dividends while building internal reserves for business expansion and strengthening corporate fundamentals.

• A major development project with a major overseas game client was paused indefinitely due to the client's policy change, creating unexpected unused development capacity starting from the third quarter, as scheduled post-interim work has been delayed.
• Late-stage projects are expected to see gradually declining utilization, and the third quarter and beyond will see overlapping launch of multiple new projects and reallocation of development resources, creating near-term operational and utilization uncertainty.
• For the Other Business segment, home karaoke music distribution revenue has underperformed initial forecasts, leading to lower-than-expected interim revenue and profit progress against full-year targets.

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