Growth xPartners Incorporated (TSE: 244A) reported consolidated results for the first nine months of the fiscal year ending August 2026 (September 1, 2025 – May 31, 2026) under Japanese GAAP. Revenue fell 4.7% to ¥3,480 million, reversing the 10.1% growth recorded a year earlier, and operating profit dropped 40.4% to ¥344 million. Ordinary profit declined 38.8% to ¥368 million and net profit attributable to owners of the parent fell 41.9% to ¥227 million. Earnings per share came to ¥67.79 against ¥120.60 a year earlier, with diluted EPS of ¥64.65 versus ¥112.85. Comprehensive income held up better, easing 15.9% to ¥340 million on gains in the securities portfolio. The quarterly statements were not subject to auditor review.
Guidance cut leaves little room in the final quarter
The headline event of the day was a downward revision to full-year guidance, replacing the forecast issued on October 15, 2025. Citing the nine-month result and current order trends, the company now guides to full-year revenue of ¥4,657 million (−8.4%), operating profit of ¥413 million (−46.6%), ordinary profit of ¥444 million (−48.9%) and net profit of ¥272 million (−54.6%), for EPS of ¥81.28. The arithmetic is worth noting: with ¥344 million of operating profit already booked through May, the revised full-year figure implies only about ¥69 million of operating profit in the fourth quarter — a markedly thinner final stretch than the run-rate of the first three quarters. Details were published in a separate release, "Notice of Revision to Full-Year Consolidated Earnings Forecast for FY8/2026," on the same day.
DX Promotion Support slips as projects slide right
Growth xPartners runs a single reportable segment, "Enterprise DX," but discloses activity in three categories. The largest, DX Promotion Support — end-to-end work spanning consulting, application development and cloud adoption — was the source of the revenue decline. Digital-platform build-outs for enterprise clients in real estate, food and finance did expand, but three offsetting factors weighed on the period: the company deliberately scaled back or ended some lower-margin maintenance engagements in order to reallocate people to growth areas; smart-mobility projects fell into a gap between contract cycles; and a healthcare-sector project's decision cycle lengthened, pushing order intake and revenue recognition later than planned. New-client wins and additional projects at existing clients did not close quickly enough to fill the hole.
Products and co-creation keep growing
DX Support Products & Services, the second category, grew over the period. Contributions came from newer offerings including LumApps' cloud internal-communications platform and consulting for IBM i (formerly System i / AS/400) modernization, alongside expanded license sales and professional services around Qualtrics' experience-management platform and Contentserv's cloud product information management (PIM) product. The third category, Digital Service Co-creation, continued its medical-DX work supporting dialysis-treatment operations at healthcare institutions. The consolidated scope also widened: Institute for Social Value Transformation Inc., established in April 2026 to strengthen the group's strategy-consulting capability, was added as a new subsidiary during the period.
Balance sheet strengthens; equity ratio reaches 77.9%
Despite the profit decline, the balance sheet improved. Total assets edged up to ¥4,778 million from ¥4,726 million at the previous fiscal year-end, while net assets rose ¥351 million to ¥3,728 million and the equity ratio climbed to 77.9% from 71.4%. Current assets fell ¥264 million to ¥2,871 million as cash and deposits slipped ¥128 million to ¥1,933 million and receivables plus contract assets fell ¥130 million to ¥740 million. Non-current assets rose ¥316 million to ¥1,907 million, driven by a ¥218 million increase in investment securities and ¥123 million more in lease and security deposits. Current liabilities fell ¥316 million to ¥770 million, with short-term borrowings down ¥150 million and income taxes payable down ¥114 million, partly offset by a ¥58 million larger bonus provision. Non-current liabilities rose ¥17 million to ¥279 million. On the equity side, retained earnings added ¥227 million and the valuation difference on available-for-sale securities added ¥113 million.
No dividend planned; share count edges up
Growth xPartners paid no dividend for FY8/2025 and forecasts none for FY8/2026, unchanged from its prior plan — consistent with a TSE Growth company that listed as recently as September 26, 2024 and is prioritising reinvestment. Shares issued including treasury stock rose to 3,378,380 from 3,353,440 a year earlier, with 22,800 treasury shares outstanding, and the weighted-average share count used for EPS increased to 3,351,643 from 3,242,839 — a mild dilution effect layered on top of the profit decline. The company, led by President and CEO Shinichi Watanabe, serves large Japanese corporates across healthcare, retail and distribution, mobility, telecom, construction, manufacturing and finance. No material subsequent events beyond the guidance revision were disclosed.
| Metric | 9M FY8/2026 | 9M FY8/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 3,480 | 3,651 | −4.7% |
| Operating profit (¥ million) | 344 | 577 | −40.4% |
| Ordinary profit (¥ million) | 368 | 602 | −38.8% |
| Net profit (¥ million) | 227 | 391 | −41.9% |
| Comprehensive income (¥ million) | 340 | 404 | −15.9% |
| EPS (¥) | 67.79 | 120.60 | −43.8% |
| Total assets (¥ million, vs FY8/2025 year-end) | 4,778 | 4,726 | +1.1% |
| Net assets (¥ million, vs FY8/2025 year-end) | 3,728 | 3,377 | +10.4% |
| Equity ratio (%) | 77.9 | 71.4 | +6.5 pt |
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.