BUFFALO (6676): FY2025 Results Summary — Operating Profit Up 4.4% as the Continuing Business Makes a V-Shaped Recovery

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

Note: BUFFALO 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. This site classifies the most recent completed fiscal year as FY2025, while the company’s materials label the period as the fiscal year ended March 2026 (FY3/2026).

BUFFALO (securities code 6676) reported consolidated results for the fiscal year ended March 2026 (FY3/2026) with net sales of 117.3 billion yen (△18.0% year on year), reflecting the termination of the exclusive distribution agreement for the Airdog series (August 29, 2025) and the spin-off of Shimadaya. Meanwhile, higher selling prices from appropriate pricing in the continuing business (PC peripherals) and the company’s own cost-reduction activities secured profit growth: operating profit was 9.2 billion yen (up 4.4%), ordinary profit was 10.2 billion yen (up 13.2%), and profit attributable to owners of parent was 8.0 billion yen (up 34.4%). Operating profit of the continuing business alone increased 655.0%, from 0.8 billion yen to 6.6 billion yen, returning to an “earning level.”

Consolidated Results (Full Year)

The main causes of the decline in net sales were the removal of the food business following the spin-off (△21.8 billion yen) and lower sales of the Airdog series, etc. (△12.2 billion yen), partly offset by an increase in wholesale products in the continuing business (+5.8 billion yen) and higher unit prices (+2.4 billion yen). Operating profit increased from 8.8 billion yen to 9.2 billion yen, as higher unit prices in the continuing business (+3.6 billion yen), the company’s own cost-reduction activities (+1.0 billion yen), wholesale products (+0.6 billion yen), other subsidiaries (+0.4 billion yen), and a foreign-exchange tailwind (+0.4 billion yen) outweighed the profit decline in the Airdog series, etc. (△3.0 billion yen) and the removal of the food business (△2.6 billion yen).

Item	FY3/2025 (Previous FY)	FY3/2026 (FY under review)	YoY Change
Net sales	143.1 billion yen	117.3 billion yen	△18.0%
— Continuing business	97.5 billion yen	106.4 billion yen	9.1%
— Airdog series, etc.	23.5 billion yen	10.8 billion yen	△53.8%
— Food business	21.8 billion yen	－	－
Operating profit	8.8 billion yen	9.2 billion yen	4.4%
— Continuing business	0.8 billion yen	6.6 billion yen	655.0%
— Airdog series, etc.	5.3 billion yen	2.6 billion yen	△50.9%
— Food business	2.6 billion yen	－	－
Ordinary profit	9.0 billion yen	10.2 billion yen	13.2%
Profit attributable to owners of parent	6.0 billion yen	8.0 billion yen	34.4%

Results by Product Category

By product category in the continuing business (PC peripherals), wholesale products grew strongly to 32.8 billion yen (120.9% of the prior-year level) on increased demand for AMD “RYZEN” CPUs and graphics boards, and network devices also increased to 25.4 billion yen (109.1%) on appropriate pricing and wins of corporate projects. Meanwhile, Other (Airdog series, etc.) decreased to 10.8 billion yen (46.2%) owing to the termination of the exclusive distribution agreement.

Product category	FY3/2026 Net sales	YoY (vs. prior year)
Network devices	25.4 billion yen	109.1%
Memory and storage devices	38.9 billion yen	100.8%
Other peripherals	5.5 billion yen	107.5%
Related services	3.5 billion yen	111.4%
Wholesale products	32.8 billion yen	120.9%
Other	10.8 billion yen	46.2%

Full-Year Forecast

For the fiscal year ending March 2027 (FY3/2027), the company forecasts consolidated net sales of 110.0 billion yen (△6.2% versus the previous year), operating profit of 6.2 billion yen (△32.8%), ordinary profit of 6.2 billion yen (△39.3%), and profit attributable to owners of parent of 4.5 billion yen (△44.2%). Net sales of the continuing business are planned to exceed the previous year on stable supply, appropriate pricing and other factors, while operating profit is planned as an underlying figure that does not factor in the previous year’s temporary profit-boosting factors (such as the foreign-exchange tailwind); the exchange-rate assumption is 155 yen, anticipating a weaker-yen direction.

Item	FY3/2026 (Actual)	FY3/2027 (Forecast)	YoY Change
Net sales	117.3 billion yen	110.0 billion yen	△6.2%
— Continuing business	106.4 billion yen	110.0 billion yen	3.4%
— Airdog series, etc.	10.8 billion yen	－	－
Operating profit	9.2 billion yen	6.2 billion yen	△32.8%
— Continuing business	6.6 billion yen	6.2 billion yen	△6.2%
— Airdog series, etc.	2.6 billion yen	－	－
Ordinary profit	10.2 billion yen	6.2 billion yen	△39.3%
Profit attributable to owners of parent	8.0 billion yen	4.5 billion yen	△44.2%

Shareholder Returns

Under its profit distribution policy, the company aims for shareholder returns such as stable dividends with a consolidated payout ratio of 30–40% as a guideline. The annual dividend for FY3/2026 is 120 yen per share (before the stock split; interim 60 yen, year-end 60 yen), and the annual dividend forecast for FY3/2027 is 60 yen per share (after the 1-for-2 stock split effective April 1, 2026; interim 30 yen, year-end 30 yen). In share buybacks, the company acquired 3.4 million shares for 8.7 billion yen in FY3/2026 and cancelled 3.3 million shares. The share buyback announced on May 14, 2026 (up to 11.2 billion yen / 4 million shares, after the stock split) is also planned for FY3/2027.

Item	FY3/2026	FY3/2027 (Forecast)
Annual dividend	120 yen/share (before the stock split; interim 60 yen, year-end 60 yen)	60 yen/share (after the 1-for-2 stock split; interim 30 yen, year-end 30 yen)
Consolidated payout ratio guideline	30–40%	30–40%
Share buyback (actual / planned)	3.4 million shares / 8.7 billion yen (before the stock split)	Up to 11.2 billion yen / 4 million shares (after the stock split, planned)
Share cancellation	3.3 million shares (before the stock split)	－

Capital Policy

The company targets a consolidated ROE of 15% or higher as a management indicator, and ROE for FY3/2026 was 18.3%. ROA for the same period was 9.7% and ROIC was 14.1%. Assets were 71,444 million yen, net assets were 43,000 million yen, and interest-bearing debt was 1,548 million yen, with the cost of shareholders’ equity put at around 7–8% (estimated using CAPM).

Topics (Stock Split and Shareholder Benefit Program)

Effective April 1, 2026, the company conducted a stock split of its common stock at a ratio of two shares for each share (total shares issued: 12 million before the split, 24 million after the split). It also effectively expanded its shareholder benefit program: shareholders holding 100 shares (one unit) or more receive a digital gift worth 5,000 yen or a “Buffalo Product Selection” at each record date at the end of March and the end of September every year. Following the announcements of the stock split, the Shimadaya spin-off, the new shareholder benefit program and other measures, the number of individual shareholders roughly doubled in one year, from 5,871 at the end of March 2025 to 11,542 at the end of March 2026.

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.