TOKYO, May 15 (Pulse News Wire) – Convano Inc. (6574.T) reported its fiscal year 2026 earnings fell short of forecasts due to impairment losses related to cryptocurrency holdings.
The company's operating profit missed expectations, but underlying revenue growth exceeded initial projections. For the fiscal year ending March 31, 2026, Convano’s consolidated revenue was higher than forecast, reaching ¥15.50 billion compared to the previous estimate of ¥14.95 billion. However, operating profit came in lower at ¥260 million versus the expected ¥410 million. lower net profit stood at -¥951 million, largely attributed to a crypto asset impairment charge of ¥810 million recorded in “other expenses.” Despite the impairment, Convano highlighted robust performance across key segments. Consulting services saw a significant boost, with revenue growing by 27.2%, while healthcare operations showed modest gains.
Conversely, nail care and investment advisory businesses lagged behind forecasts, contributing to overall profitability challenges. The company emphasized that the impairment loss is non-cash and does not impact operational cash flow. It noted that should cryptocurrency prices recover, a portion of this impairment could be reversed in future quarters. Convano maintains its strategic view of cryptocurrencies as long-term assets and plans to continue its covered call strategy alongside potential partial sales to fund mergers and acquisitions, digital talent investments, and financial stability improvements. In a separate statement, Convano detailed adjustments made to exclude the crypto impairment effect, showing improved underlying metrics such as pre-tax income and operating profit exceeding initial estimates.
The firm reiterated its commitment to transparency and will disclose further developments regarding the next quarter's crypto valuation results promptly.
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