Hatch Work Co., Ltd. (TSE Growth: 148A) released Q1 results for the fiscal year ending December 2026, prepared on a non-consolidated basis under Japanese GAAP. The company operates two segments: the Monthly Innovation business (centered on the "At Parking Cloud" online monthly parking management service) and the Building Innovation business (rental meeting rooms and shared offices).
Net sales rose 15.6% year-on-year to ¥744 million, reflecting continued expansion of the core AP Cloud service. However, profitability declined sharply on strategic upfront investments. Operating profit fell 82.4% to ¥13 million, ordinary profit decreased 84.3% to ¥14 million, and quarterly net profit declined 84.3% to ¥9 million. EPS fell to ¥4.94 from ¥31.64; diluted EPS was ¥4.75 versus ¥30.31. The prior-year quarter had benefited from ¥20 million of subsidy income recorded as non-operating revenue.
Monthly Innovation flywheel keeps spinning
The Monthly Innovation business posted strong growth, with net sales increasing 28.0% to ¥520 million and segment profit rising 15.2% to ¥154 million. The "At Parking Cloud" service continued to expand its registered vehicle base, reaching 487,114 units at quarter-end (+23.7% YoY). Annual Recurring Revenue (ARR) climbed to ¥1,765 million from ¥1,343 million a year earlier, reflecting a competitive flywheel: broader parking-lot coverage drives higher user traffic, which in turn accelerates adoption by real estate management firms. The "Disaster Station" initiative with local governments and the alliance with the Hatomark Support Organization continue to expand.
By contrast, the Building Innovation segment recorded a 4.4% sales decline to ¥223 million and a 43.1% drop in segment profit to ¥27.7 million, reflecting investments tied to the April 1, 2026 opening of new rental meeting rooms in Minami-Aoyama and Shimbashi. The Other segment contributed ¥0.8 million in sales. Unallocated corporate expenses rose significantly to ¥169 million from ¥111 million, materially compressing reported operating profit.
Balance sheet reflects expansion
Total assets stood at ¥3,060 million, up ¥176 million from year-end. Non-current assets grew ¥108 million to ¥568 million, mainly from ¥84 million in additions to building fixtures and ¥21 million in tools/equipment associated with the office relocation and new meeting rooms. Total liabilities increased ¥165 million to ¥2,022 million. Net assets edged up ¥10 million to ¥1,038 million, reflecting the quarter's net profit. The equity ratio declined to 33.9% from 35.6%.
| Metric | Q1 FY12/26 | Q1 FY12/25 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 744 | 643 | +15.6% |
| Operating profit (¥ million) | 13 | 74 | -82.4% |
| Ordinary profit (¥ million) | 14 | 92 | -84.3% |
| Net profit (¥ million) | 9 | 60 | -84.3% |
| EPS (¥) | 4.94 | 31.64 | -84.4% |
| ARR (¥ million) | 1,765 | 1,343 | +31.4% |
| AP Cloud registered vehicles | 487,114 | 393,786 | +23.7% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.