TOKYO, Apr 13 (Pulse News Wire) – Elements,inc. (5246.T) reported robust performance for its fiscal 2026 first quarter ending January 31, 2026.
Revenue reached ¥1.291 billion (up 81% year-over-year), while EBITDA stood at ¥269 million (an improvement of ¥178 million). Operating profit was recorded at ¥119 million (a rise of ¥132 million), and net income attributable to shareholders amounted to ¥100 million (compared to ¥151 million last year). The revenue growth was primarily driven by the integration of PolariPhy as a subsidiary and strong performance from LIQUID eKYC. Additionally, the cumulative number of contracted companies in Group Zentai expanded by 27 to reach 682 compared to the previous quarter.
Despite a decline in gross margin due to PolariPhy's consolidation, the company managed to maintain a solid operating profit rate thanks to cost controls and operational efficiencies. EBITDA saw significant gains, reaching ¥269 million (improved by ¥178 million). However, the inclusion of PolariPhy-related M&A expenses reduced adjusted operating profit to ¥146 million (down from ¥159 million). The company noted that despite higher selling and administrative costs due to PolariPhy’s integration (¥176 million) and M&A expenses (¥27 million), the sales and general administration expense ratio improved by -24.0% year-over-year, standing at 66.6%.
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