Information Strategy Technology Co., Ltd. (TSE: 155A) released Q1 results for the fiscal year ending December 2026, prepared in accordance with Japanese GAAP. The consolidated financial statements have not been reviewed by independent auditors, as is customary for quarterly tanshin disclosures.
Net sales reached ¥2,348 million, up 44.2% from ¥1,628 million. Operating profit surged to ¥222 million from ¥48 million — growth of 359.6%. Ordinary profit rose 341.3% to ¥218 million; profit attributable to owners of the parent jumped 568.5% to ¥129 million. Basic Q1 EPS was ¥12.67 (versus ¥1.88); diluted EPS was ¥12.13. The dramatic profit expansion reflects significant operating leverage — cost of sales rose 45.8% to ¥1,716 million while SG&A increased only modestly to ¥408 million from ¥403 million.
"Zero-tier DX" model deepens enterprise accounts
The company operates as a single segment focused on DX-related business. Management characterizes the group's positioning as "Zero-tier DX" (0次DX) — a model in which the company collaboratively supports clients' in-house system development rather than acting purely as an external contractor, working alongside large enterprise customers in manufacturing, hospitality, food services and equipment leasing.
Performance was driven by sustained IT investment demand among major corporate clients, deeper penetration of existing accounts, and the acquisition of new customers. The average monthly billing rate for company engineers (excluding new graduates in training) reached ¥1.28 million as of quarter-end, and the engineer headcount stood at 339. Consolidated subsidiary WhiteBox Inc. made progress with the beta release of its workflow automation product "OmniSquare" and rapid growth in the closed-beta utilization balance of its payment platform "WhiteBox PayAssist," while total member companies increased from 3,188 at the prior fiscal year-end to 3,294.
Balance sheet reinforced for growth
Total assets stood at ¥4,743 million, up ¥671 million from ¥4,072 million at the prior fiscal year-end. Current assets rose ¥659 million to ¥3,642 million, primarily reflecting a ¥523 million increase in cash and deposits to ¥2,510 million. Total liabilities increased ¥531 million to ¥2,864 million on a new ¥300 million short-term borrowing, a ¥272 million increase in long-term borrowings, and ¥60 million more in long-term borrowings due within one year. Net assets rose ¥140 million to ¥1,879 million. The equity ratio declined to 39.6% from 42.7%.
| Metric | Q1 FY12/26 | Q1 FY12/25 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 2,348 | 1,628 | +44.2% |
| Operating profit (¥ million) | 222 | 48 | +359.6% |
| Ordinary profit (¥ million) | 218 | 49 | +341.3% |
| Net profit attrib. to owners (¥ million) | 129 | 19 | +568.5% |
| EPS (¥) | 12.67 | 1.88 | +574.0% |
| Engineer monthly billing rate (¥ million) | 1.28 | — | — |
| Engineer headcount | 339 | — | — |
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.