TOKYO, May 15 (Pulse News Wire) – Fonfun Corporation (2323.T) revised its fiscal year 2026 earnings forecast, reporting adjusted operating income and net profit figures that diverge from previous estimates. According to the company's statement released today, the adjustments reflect changes in stock price performance and tax asset considerations.
For the fiscal year ending March 31, 2026, Fonfun reported a revenue of ¥2.111 billion, compared to the previously estimated ¥2.101 billion. Operating profit came in at ¥242 million, down from the projected ¥266 million. However, due to improved prospects for future taxable income, the company recognized additional deferred tax assets, leading to a significant increase in net profit to ¥20.2 million per share, surpassing the earlier estimate of ¥15.5 million per share. The company attributed the variance primarily to robust stock price performance, which increased the likelihood of achieving exercise conditions for outstanding warrants.
As a result, non-recurring expenses related to equity-based compensation were recorded as operational costs, impacting overall profitability negatively. Despite this, the recognition of deferred tax assets positively influenced the bottom line, resulting in a substantial boost to net profit. In addition to these revisions, Fonfun noted that it had completed a three-for-one stock split effective January 30, 2026. This adjustment was applied retrospectively to calculate earnings per share for the prior fiscal year.
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