note Nine-Month Operating Profit Jumps 6.7-Fold to ¥849 Million as Sales Grow 33%

Sales outrun a flat cost base

note inc. (TSE: 5243), the Tokyo-based operator of the creator platform note, reported consolidated results for the first nine months of FY11/2026, from December 1, 2025 to August 31, 2026, on October 6, 2026 under Japanese GAAP. Net sales rose 33.2% to ¥4,058 million and gross profit 26.4% to ¥3,610 million, while selling, general and administrative expenses grew only 1.2% to ¥2,761 million. Operating profit therefore jumped 567.0% to ¥849 million, a margin of 20.9% against 4.2% a year earlier; with ¥538 million earned in the first half, the third quarter alone contributed about ¥311 million. Adjusted EBITDA, which adds back depreciation, share-based compensation and one-off costs, rose 452.0% to ¥923 million.

Ordinary profit rose 513.6% to ¥858 million. Because the company recognised deferred tax assets, its tax line was a net credit of ¥135 million, so profit attributable to owners of the parent, at ¥994 million, came in above pre-tax profit and was up 368.1%, or ¥52.76 per share against ¥13.02.

The note platform keeps growing

The media platform business grew sales 24.9% to ¥3,743 million and segment profit 420.5% to ¥886 million. Sales of the consumer platform note rose 21.8% to ¥2,968 million, the corporate publishing service note pro grew 32.1% to ¥626 million, and corporate services such as sponsored note contests rose 77.5% to ¥115 million. Gross merchandise value in the June–August quarter rose 18.3% to ¥6,553 million; by the end of August note had 13.13 million registered members and 89.93 million published pieces, and note pro's annual recurring revenue had reached ¥839 million, up 29.5%.

The IP and content creation business, built around the subsidiary Tales & Co., grew sales 28.6% to ¥71 million, but its segment loss widened to ¥24 million from ¥8 million. The new AI-related segment, set up this fiscal year and centred on a project selected for the GENIAC generative-AI programme run by the Ministry of Economy, Trade and Industry and NEDO, recorded sales of ¥250 million and segment profit of ¥27 million.

Two strategic investors almost triple equity

Total assets rose 86.4% to ¥11,455 million from November 30 and net assets 183.7% to ¥8,166 million. note received about ¥2.0 billion from a third-party allotment to NAVER Corporation in December 2025 and ¥2,212 million from one to KADOKAWA Corporation in April 2026; cash and deposits rose by ¥4,850 million to ¥7,896 million, and the company repaid its ¥612 million of long-term borrowings in full. The equity ratio rose to 70.6% from 45.9%.

Raised forecast kept

note kept the FY11/2026 forecast it raised on July 7, 2026: net sales of ¥5,650 million (+36.4%), adjusted EBITDA of ¥1,220 million (+287.5%), operating profit of ¥1,100 million (+329.4%), ordinary profit of ¥1,130 million (+330.2%) and net profit of ¥1,200 million (+172.3%), or ¥63.17 per share. Nine-month operating profit already covers 77% of the full-year target. The company plans no dividend.

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.