Fabrica Holdings Co.,Ltd. Q2 FY2026 earnings call

• Overall Consolidated Performance

  • First half 2026 cumulative consolidated revenue: 5.004 billion yen (12.8% YoY growth), EBITDA: 714 million yen (13.4% YoY growth), operating profit: 598 million yen. Double-digit growth achieved for both revenue and EBITDA.
  • Q2 2026 standalone revenue: 2.525 billion yen (10.7% YoY growth), EBITDA: 375 million yen (13.3% YoY growth). Reported net profit decline is only due to a one-off 56 million yen investment securities sale gain in the prior year period; core net profit is actually 6.6% YoY higher when excluding this factor.
  • Progress against full-year plan is strong overall: 51.3% for revenue, 59.8% for operating profit, 60.8% for ordinary profit, 64.2% for net profit. The balance sheet remains healthy with high equity ratio maintained and cash and investment assets increased from Q1.

• Key Operational Milestones by Segment

  • Business Communication: Cumulative contracted companies for SMS-related services reached 6,818 as of end-September 2025, increasing by 991 YoY and 236 quarter-over-quarter. Advertising cost as a percentage of sales has decreased, supporting efficient operations.
  • Automotive Platform: Car solution service accounts grew to 4,765, with a stable low revenue churn rate of 0.6%. The new cloud-based vehicle inspection billing system Quicar has been launched, with plans to add features and integrate with existing services going forward. Continued product development and talent investment, plus Autorex consolidation, have increased SG&A this quarter.
  • AI: The onBridge AI phone communication infrastructure (for automated call handling and identity verification) is currently being rolled out to early customers. Development of onVoice, a no-code platform for building custom voice AI services, is ongoing and targeted for launch within the current fiscal year. Combining these two offerings will enable easy automation of call center operations for any business.

• Shareholder Return

  • A 19 yen per share interim dividend has been declared as originally planned, with a full-year dividend target of 38 yen per share, which will mark the 5th consecutive year of dividend increases.
  • Shareholder benefits are maintained for holders of 200+ shares, offering up to 24,000 yen in annual benefits based on holding period to strengthen shareholder returns.

1. Business Communication Segment: Q2 2026 (April-September 2025) sales = 1.555 billion yen (11.1% YoY growth); first half cumulative sales = 3.124 billion yen (13.7% YoY growth), contributing 62.4% of total first half consolidated revenue. Q2 operating profit = 455 million yen (record high), with high operating margin maintained. First half full-year plan progress: 50.8% for sales, 58.5% for operating profit.
2. Automotive Platform Segment: Q2 2026 sales = 433 million yen (record high, boosted by the consolidation of newly acquired Autorex from Q2), first half cumulative sales progress against full-year plan = 46.8%. Q2 operating profit = 48 million yen (YoY decline), first half cumulative operating profit progress against full-year plan = 42.6% (slightly below plan), contributing 8.6% of total first half consolidated revenue.
3. AI Segment: First half cumulative sales progress against full-year plan = 71% (well above target), with investment in AI product development continuing to accelerate commercialization.
4. Auto Service Segment: Q2 2026 sales = 535 million yen (record high), first half cumulative sales = 1.025 billion yen (16.9% YoY growth), contributing 20.5% of total first half consolidated revenue. First half full-year plan progress: 57.8% for sales, 38.3% for operating profit, operating performance is in line with plan.

• Full-year plans for all segments are maintained overall, with most segments tracking ahead of or in line with plan
• Automotive Platform is currently slightly behind full-year plan due to weakness in its web marketing/media division, and management expects to recover performance in the second half through corrective mitigation measures
• AI business commercialization is being accelerated, with the onVoice platform targeted to launch within the current 2026 March fiscal year
• The 5th consecutive annual dividend increase is on track to be achieved, with the full-year 38 yen per share dividend target maintained

• The web marketing and media division of the Automotive Platform segment has experienced a profit decline due to negative impacts from Google AI Overview
• Current upper-half progress for Automotive Platform revenue and operating profit is slightly below full-year plan, requiring a second-half recovery

No question and answer section was included in the provided transcript.