ExaWizards, the Tokyo-listed AI software and consulting group, reported revenue of ¥3.45bn for the three months to June 30, 2026, up 41.0% from a year earlier, with operating profit rising 39.0% to ¥200mn. Net profit attributable to shareholders climbed 31.1% to ¥87mn. It was the strongest first quarter in the company's history for both sales and operating profit, according to the results presentation released alongside the earnings report.
The growth was uneven beneath the surface. Cost of sales jumped 89.2% year on year as ExaWizards spent more on staff, systems and depreciation, pulling gross margin down to 57.6% from 68.4% a year earlier. The AI Product business, which sells generative-AI tools including the newly renamed Exabase AI (formerly Exabase Generative AI, now adopted by 1,626 client organisations including a majority of Japan's prefectural governments), grew sales 50.6% to ¥1.59bn, but operating profit rose only 9.1% to ¥518mn as advertising and development costs ate into the segment's margin. The AI Solution Services unit, which runs corporate AI consulting projects, converted growth into profit more efficiently: sales rose 31.1% to ¥1.91bn and operating profit jumped 44.6% to ¥450mn.
| Segment | Sales | Sales YoY | Operating profit | Operating profit YoY |
|---|---|---|---|---|
| AI Product | ¥1.59bn | +50.6% | ¥518mn | +9.1% |
| AI Solution Services | ¥1.91bn | +31.1% | ¥450mn | +44.6% |
The bigger change sits on the balance sheet. ExaWizards completed a third-party share allotment to Sumitomo Mitsui Financial Group on April 16, 2026, raising capital and capital reserves by ¥2.70bn each, a combined ¥5.40bn increase. Total net assets rose to ¥10.16bn from ¥4.75bn at the end of March, and the equity ratio jumped to 70.1% from 48.1%. Total assets reached ¥14.34bn, up from ¥9.44bn, largely reflecting the cash the allotment brought in.
Management left its full-year guidance unchanged: sales of ¥15.6bn (up 30.0%) and operating profit of ¥2.3bn (up 44.3%) for the year to March 2027. The company also confirmed a year-end dividend forecast of ¥5.00 per share, its first payout since listing. Whether the new capital base translates into sustained margin recovery, rather than just a larger balance sheet, will be the test as the AI Solution Services segment keeps absorbing higher subcontracting costs tied to a tight market for AI engineering talent.