Globe-ing Inc. (277A): FY2025 Results Summary — Operating Profit Up 47.9% on 39.4% Revenue Growth

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Globe-ing Inc. does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The company labels this period the fiscal year ended May 2026; this site classifies the most recent completed fiscal year as FY2025, while the labels used in the text and tables follow the source materials.

On July 15, 2026, Globe-ing released its results presentation materials for the fiscal year ended May 2026 (full year). Consolidated results for the period were net sales of 11,512 million yen (up 39.4% year on year), operating profit of 4,142 million yen (up 47.9%, operating margin 36.0%) and profit attributable to owners of parent of 3,051 million yen (up 72.6%), finishing the year with higher sales and higher profit relative to the initial forecast as well. Compared with the full-year forecast revised on January 14, operating profit came in 3.6% higher and profit attributable to owners of parent 8.6% higher. For the fiscal year ending May 2027 the company plans revenue of 16.1 billion yen and operating profit of 4.83 billion yen on an IFRS basis.

Consolidated Results (FY Ended May 2026, Actual)

Net sales rose 39.4%, from 8,255 million yen to 11,512 million yen. Gross profit was 7,736 million yen (margin 67.2%) and operating profit was 4,142 million yen (margin 36.0%), a substantial profit increase achieved while absorbing the impact of costs related to the Prime Market listing. Profit attributable to owners of parent was 3,051 million yen (margin 26.5%).

Item	FY5/2026 (Current Year)	FY5/2025 (Prior Year)	Change
Net sales	11,512 million yen	8,255 million yen	+39.4%
Operating profit	4,142 million yen	2,800 million yen	+47.9%
Operating margin	36.0%	33.9%	+2.1pt
Profit attributable to owners of parent	3,051 million yen	1,768 million yen	+72.6%
Net profit margin	26.5%	21.4%	+5.1pt

Business KPIs

As key performance indicators, the company discloses the adjusted number of consultants and average consultant annual compensation, together with the Joint Initiative (JI) revenue ratio and the AI-related revenue ratio. In the fiscal year ended May 2026 the JI revenue ratio rose to 60% (6.89 billion yen) and the AI-related revenue ratio to 49% (5.66 billion yen), with JI revenue reaching a record high level on the expansion of strategic accounts. In the fourth quarter of the fiscal year ended May 2026, the AI-related share of consolidated net sales rose to 58%.

Indicator	FY5/2026	FY5/2025
Adjusted number of consultants	203	178
Average consultant annual compensation	20.04 million yen	20.12 million yen
Joint Initiative revenue ratio (amount)	60% (6.89 billion yen)	44% (3.60 billion yen)
AI-related revenue ratio (amount)	49% (5.66 billion yen)	30% (2.47 billion yen)

Full-Year Forecast (FY Ending May 2027)

The full-year consolidated forecast for the fiscal year ending May 2027 (IFRS basis) calls for revenue of 16,100 million yen (up 39.8% year on year), operating profit of 4,830 million yen (up 20.6%, operating margin 30.0%) and profit for the year of 3,381 million yen (up 17.7%). On an underlying basis before investment the company could secure an operating margin of 35%, but the full-year forecast margin is set at 30.0% because it incorporates additional investment in talent recruitment as well as investment in AI and M&A. The fiscal year ended May 2026 figures shown for comparison are approximate, unaudited amounts restated on an IFRS basis.

Item	FY5/2027 Forecast	FY5/2026 Actual (IFRS, approximate)	YoY
Revenue	16,100 million yen	11,512 million yen	+39.8%
Operating profit	4,830 million yen	4,005 million yen	+20.6%
Operating margin	30.0%	34.8%	△4.8pt
Profit for the year	3,381 million yen	2,871 million yen	+17.7%
Net profit margin	21.0%	24.9%	△3.9pt
Earnings per share	118.56 yen	100.84 yen	+17.6%

Shareholder Returns

In the fiscal year ended May 2026 the company began paying dividends, distributing 16.10 yen per share for the second half (payout ratio 15%). For the fiscal year ending May 2027 it plans two dividend payments a year with an annual payout ratio of around 30%: 14.20 yen at the interim, 21.40 yen at the year-end and 35.60 yen for the full year. In pursuing management that is conscious of the cost of capital and the share price, the company’s policy is to emphasize the optimal balance between growth investment and shareholder returns and to carry out continuous and disciplined shareholder returns.

Category	Interim	Year-End	Full Year	Annual Payout Ratio
FY5/2026 Actual	0 yen (before dividends began)	16.10 yen	16.10 yen	15% (second-half portion)
FY5/2027 Forecast	14.20 yen	21.40 yen	35.60 yen	30%

Medium-Term Management Policy

As its medium- to long-term growth strategy, the company sets out three pillars: (1) JI x AI-X (base business), (2) AI-PF (challenge business) and (3) investment and M&A (growth business). For JI x AI-X it targets a revenue CAGR of 35% and an operating margin of 35% from the fiscal year ending May 2027 through the fiscal year ending May 2031, and a CAGR of 20% with an operating margin of 35% from the fiscal year ending May 2032 through the fiscal year ending May 2040. For AI-PF it targets revenue of 4.0 billion yen and an operating margin of 50% as of the fiscal year ending May 2031, and a revenue CAGR of 70% with an operating margin of 50% from the fiscal year ending May 2032 through the fiscal year ending May 2040. For investment and M&A it targets revenue of 60.0 billion yen in the fiscal year ending May 2031 and plans a revenue CAGR of 40% or more from the fiscal year ending May 2032 through the fiscal year ending May 2040. Company-wide, it has indicated a policy of maintaining growth of approximately 60% a year through the fiscal year ending May 2031.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.