Slide 1: Q3 FY2026 Financial Results
Q3 FY2026.11 Financial Results October 6, 2026 note inc. (TSE Growth: 5243) Notice: This document has been translated by AI based on the Japanese original for reference purposes. In the event of any discrepancy between this translated document and the Japanese original, the latter shall prevail. not
Slide 2: Contents
Contents 01 Summary of Financial Results and Earnings Forecasts 02 Growth Strategies for note in the AI Era and Current Initiatives 03 Stock Status and IR note inc. 2
Slide 3: Contents
Contents 01 Summary of Financial Results and Earnings Forecasts 02 Growth Strategies for note in the AI Era and Current Initiatives 03 Stock Status and IR note inc. 3
Slide 4: Executive Summary
Executive Summary FY2026 Q3 Financial Highlights In addition to the steady performance of the note and note pro Net sales 1,453 million yen YoY +35.1 % businesses, sales in the AI-Related Business expanded, leading to p.6~ significant revenue growth Increased net sales drove significant profit growth,
Slide 5: Summary of Consolidated Financial Results for Q3 FY2026
Summary of Consolidated Financial Results for Q3 FY2026 Significant revenue and profit growth due to the steady growth of each business. Productivity improved through the active promotion of AI utilization, and each level of profit is progressing at a pace exceeding the full-year forecast. FY2026 Unit:
Slide 6: Quarterly Trends in Net Sales and EBITDA Margin
Quarterly Trends in Net Sales and EBITDA Margin Net sales continue to show high growth at +35.1% YoY, and EBITDA Margin remains in the 20% range. Net sales (Millions of yen) / EBITDA Margin (%) Track Record of Revenue Growth Rate FY2024 Full Year +19.3% FY2025 Full Year +25.0% FY2026 1Q +27.3% FY202
Slide 7: Adjusted EBITDA and Operating Profit Trends
Adjusted EBITDA and Operating Profit Trends Adjusted EBITDA and Operating profit both expanded approximately 3-fold YoY due to factors such as sales growth. Adjusted EBITDA (Millions of yen) Operating profit (Millions of yen) * Adjusted EBITDA = Operating profit + Depreciation + Stock compensation expen
Slide 8: Operating Profit Increase/Decrease Analysis
Operating Profit Increase/Decrease Analysis (FY2025 Q3 → FY2026 Q3) The increase in net sales drove profit expansion, with operating profit increasing approximately 3-fold YoY. While enhancing productivity through AI utilization, we are also proceeding with hiring for necessary positions to support bus
Slide 9: Efficient Business Operations Through Active AI Utilization
Efficient Business Operations Through Active AI Utilization We are actively utilizing AI tools company-wide, improving productivity across all operations. While net sales continue to grow, the number of personnel remains flat, enabling efficient business operations. Promotion of Active AI Utilization Num
Slide 10: Headcount Trends / Ratio of Personnel Expenses to Net Sales
Headcount Trends / Ratio of Personnel Expenses to Net Sales While actively utilizing AI throughout the company, we are conducting selective hiring limited to necessary positions. Due to efficient business operations, the number of personnel has remained flat, and the ratio of personnel expenses to net
Slide 11: Progress Against Full-Year Forecast
Progress Against Full-Year Forecast (Announced July 7) Both net sales and Adjusted EBITDA have expanded each quarter, progressing as expected. Cumulative Progress Rate by Quarter 1Q 2Q Q3 4Q Net sales Full-Year Forecast FY2026 21.6% 24.5% 25.7% As of Q3: 71.8% 5,650 million yen FY2025 23.1% 24.5% 26
Slide 12: Q4 Outlook and Landing Forecast
Q4 Outlook and Landing Forecast All major indicators are progressing steadily, and we expect each level of profit to land above the full-year forecast. Q3 Full-Year Q3 Progress Q4 Outlook Landing Forecast Cumulative Forecast (million yen) rate (million yen) (million yen) Net sales 1,453 4,058 5,650 7
Slide 13: Reference: Key Financial Metrics and Business KPIs
Reference: Key Financial Metrics and Business KPIs Our policy is to aim for sustainable corporate value enhancement by balancing revenue growth through business scale expansion and Adjusted EBITDA growth through profitability improvement. As key business KPIs, we emphasize GMV for our core note busin
Slide 14: Net sales breakdown
Net sales breakdown In addition to the steady performance of note and note pro, sales in the AI-Related Business have expanded. Net sales breakdown (Millions of yen) 1,453 1,385 Other 1,218 IP 1,094 AI 1,075 1,013 Corporate services 957 Other IP note pro 845 850 804 811 Other note FY2024 FY2025 FY20
Slide 15: Breakdown of Cost of Sales + SG&A
Breakdown of Cost of Sales + SG&A While the cost of sales increased due to the progress of the GENIAC project, the ratio of costs to net sales has remained in the 76% range due to appropriate cost control. COGS + SG&A (Millions of yen) / Ratio of COGS and SG&A to net sales (%) Ratio to net sales Rat
Slide 16: note: GMV
note: GMV GMV continued to grow from Q2, maintaining strong performance. The subscriptions ratio rose to 29.4%, expanding the stable monetization base. Quarterly GMV (Millions of yen) / Take rate (%) GMV Trends There is a seasonal pattern where GMV expands significantly in 1Q each year and remains fla
Slide 17: Factors behind the declining trend in the take rate
[Reference] Factors behind the declining trend in the take rate A change in composition due to a decrease in the relative proportions of two items with high rates. This is an intentional change and not a problem. Take rate = Platform usage fees and Administration fees weighted average of Platform us
Slide 18: note: Number of Purchasers and ARPPU
note: Number of Purchasers and ARPPU The number of monthly purchasers continues to grow, up 20.7% YoY. ARPPU remains stable in the 2,700 yen range. Monthly purchasers (thousands) / ARPPU (yen) Factors behind the increase in the number of subscribers With the expansion of the platform, the base of su
Slide 19: note: Growth of the platform
note: Growth of the platform In addition to the network effect accompanying the expansion of the platform, the spread of generative AI has become a tailwind, with the growth pace of content and creators in particular accelerating. Sum total of User Accounts Amount of Published Content Cumulative Uniq
Slide 20: note: Creator Earnings Data / Subscriber Data
note: Creator Earnings Data / Subscriber Data (FY2025) The average annual sales of the top 1,000 creators reached 15.15 million yen, and the number of creators who can make a living solely through note is increasing. Another characteristic is the high frequency of article purchases, with over 90% pu
Slide 21: note pro: ARR and Churn Rate
note pro: ARR and Churn Rate ARR increased significantly by 29.5% YoY due to the conversion of contracts acquired in the large-scale campaign conducted in 2Q to paid status. ARR (Millions of yen) / Average monthly revenue churn rate (%) Factors for ARR increase Due to the conversion to paid status of
Slide 22: note pro: Number of Paid Subscriptions and ARPPU
note pro: Number of Paid Subscriptions and ARPPU Although the number of paid contracts decreased QoQ due to the reactionary effect of the large-scale 2Q campaign, it saw a significant YoY increase of +145. Number of Paid Subscriptions (contracts) / ARPPU (yen) Trends in the number of paid contracts +1
Slide 23: Balance Sheet Status
Balance Sheet Status Cash and deposits and shareholders' equity increased due to the investment from NAVER in December and KADOKAWA in April, as well as strong operating results. Borrowings were also repaid, leading to an increase in the shareholders' equity ratio. Unit: Millions of yen End of Novem
Slide 24: Contents
Contents 01 Summary of Financial Results and Earnings Forecasts 02 Growth Strategies for note in the AI Era and Current Initiatives 03 Stock Status and IR note inc. 24
Slide 25: In an era of radical changes in information distribution, note continues to grow
In an era of radical changes in information distribution, note continues to grow note inc. 25
Slide 26: External Environment: The spread of AI has irreversibly changed information distribution
External Environment: The spread of AI has irreversibly changed the distribution of information When people want to know something, they increasingly rely on AI rather than social media or search. As the number of people visiting websites decreases*, media and companies are being forced to rethink h
Slide 27: note has built a new distribution mechanism
note has built a new distribution mechanism High-quality content that only specific individuals can write gathers, readers and content meet, and this spreads beyond note. note has built up a new distribution mechanism that generates this flow. 01 Gather 02 Meet 03 Spread Continuous creation of Creatin
Slide 28: A place visited by many, even in the AI era
A place visited by many, even in the AI era As a result of building this mechanism, even as more people obtain information via AI, many people continue to visit note. With over 90 million MAU, the number of accesses is now on par with major services used in daily life. Japan Web Site Access Ranking
Slide 29: Growing into one of Japan's largest platforms
Growing into one of Japan's largest platforms The Sum total of User Accounts for note continues to grow steadily, reaching 13.13 million at the end of August. The Amount of Published Content has reached 89.93 million, and the annual GMV is 21.3 billion yen, reaching one of the largest scales in Japa
Slide 30: Large-scale Specified Telecommunications Service Provider
Designated as one of the large-scale platforms defined by the government With the expansion of our scale, note has been designated as one of the 13 operators, alongside Google, Meta, LINE Yahoo, and others. We have taken on the responsibility of supporting the dissemination of information by more peo
Slide 31: Becoming a Platform for Social Information Distribution
Becoming a Platform for Social Information Distribution Government ministries and agencies, local governments, and educational institutions are increasingly using note for information dissemination. It has become a trusted platform that continues to be chosen as a place to deliver public information
Slide 32: Diversifying Revenue Sources Based on a Grown Platform
Diversifying Revenue Sources Based on a Grown Platform In addition to content payments from readers, we are generating compensation from companies, AI providers, and IP licensees, building a business portfolio that is not solely dependent on the volume of traffic. Expanding Revenue Sources to Companie
Slide 33: Easily cited by AI, and attracting people from there
Easily cited by AI, and attracting people from there. Gaining an advantage in the AI era note inc. 33
Slide 34: A place where highly reliable primary information accumulates
A place where highly reliable primary information accumulates, read by both humans and AI note gathers high-quality primary information found nowhere else, based on the experience and specialization of its creators. As a result, it is frequently referenced and cited when AI generates answers. Japan
Slide 35: Traffic from AI Search
note has become a place that is not only cited by AI but also attracts people from there While the number of people visiting websites is decreasing as they are satisfied with AI answers, note is cited in AI answers and continues to attract visitors from there. Traffic from AI search has become a new tr
Slide 36: AI Context Network and GENIAC project
Leveraging our strong competitive advantage in AI to further strengthen the flow of content to AI Within note, the AI Context Network; outside of note, the GENIAC project. We will further strengthen the flow of content to AI through these two channels. Strengthening distribution Strengthening distribu
Slide 37: Creator's Media Platform to Content Distribution Infrastructure
note to date Creator's Media Platform Future note Content Distribution Infrastructure for the AI Era Evolving into a presence that connects high-quality creation and primary information to "distribution, monetization, and redistribution" in the AI era note inc. 37
Slide 38: note's Growth Strategies in the AI Era
note's Growth Strategies in the AI Era The four growth assets that note possesses work in tandem to form the content distribution infrastructure of the AI era The engine for expanding content distribution Expanding monetization channels ● Service design and structure that is easily cited and referen
Slide 39: Specific Initiatives for Content Distribution Infrastructure
Specific Initiatives for Content Distribution Infrastructure AI Business Creative Data With the AI Context Network at the core, we are promoting various initiatives, including data distribution through GENIAC, strengthening recommendation engines, and providing multilingual support. Expansion of the
Slide 40: Expansion of the AI Context Network
A B C D Key Topic Expansion of the AI Context Network The AI Context Network is a mechanism that uses AI to read the context of articles and automatically create pages for each work or product (keyword pages) that consolidate official information and review articles. Books, Visual Content, Games Over
Slide 41: People and AI come to places where information gathers
People and AI come to places where information gathers When information about works and products gathers on a single page, people who want to know about them visit, and it becomes easier for AI to reference them when providing answers. As readers write their impressions, more information gathers, an
Slide 42: Increasing opportunities for articles to be read
Increasing opportunities for articles to be read by expanding target categories and enhancing features By increasing the number of keyword pages and enhancing features within the pages, more people and articles will gather, increasing opportunities for articles to be read. Future plans and initiativ
Slide 43: Expansion of participating companies and works
Expansion of participating companies and works. Planning to offer paid services to companies in the future. We are increasing the number of participating cases for recognition expansion and effectiveness verification, with multiple major companies and works participating. We plan to offer paid services
Slide 44: Providing a Third Revenue Opportunity for Creators
Providing a Third Revenue Opportunity for Creators Considering a mechanism to redistribute revenue to creators when revenue is generated on keyword pages. Aiming to provide new revenue opportunities for creators in addition to paid content sales and compensation for AI training. Revenue Opportunitie
Slide 45: Building a Data Distribution Ecosystem through GENIAC
A B C D Building a Data Distribution Ecosystem through GENIAC Our RAG database development and collaboration track record with media organizations were recognized, leading to our selection for "GENIAC," a generative AI national project. We are promoting the construction of a database that aggregates
Slide 46: Launch of automated multilingual support
A B C D Launch of automated multilingual support to bring Japanese content to the world We are promoting automated multilingual support using AI to deliver content written in Japanese to readers worldwide. We began providing this service for free articles starting with English, and in late August, w
Slide 47: Start of note Article Citations in AI Responses on NAVER
A B C D Start of note Article Citations in AI Responses on South Korean Search Service "NAVER" In collaboration with our capital and business alliance partner, NAVER in South Korea, we have started citing note articles on the search screens provided by NAVER in South Korea. This initiative leverages
Slide 48: Strengthening the recommendation engine utilizing generative AI
A B C D Strengthening the recommendation engine utilizing generative AI Amid the explosive increase in content due to the spread of generative AI, we have strengthened the recommendation engine (an AI mechanism for recommending articles) to ensure readers can encounter articles that suit them. Overv
Slide 49: Expansion of note pro and corporate services
A B C D Expansion of note pro and corporate services In response to corporate needs and challenges such as "wanting to strengthen our own dissemination" and "wanting to increase opportunities to be talked about by users and fans," we provide a combination of the following four menus. Strengthening o
Slide 50: Examples of note pro and note Contest
Examples of note pro and note Contest: Adoption Expanding Across Various Companies Adoption is expanding among major companies for various purposes such as branding and recruitment PR. note pro / Optional Plans note Contest Okamura Netflix MOS FOOD SERVICES Adopted note as a place to convey the commi
Slide 51: Collaboration with Aomori Prefecture and Himeji City Boards of Education
A B C D Collaboration with Aomori Prefecture and Himeji City Boards of Education to support information dissemination using note pro To strengthen information dissemination from educational settings and reduce the burden on faculty and staff, we are promoting the free provision of note pro and operat
Slide 52: Rebuilding the Media Development Process promoted by Tales & Co.
A B C D Rebuilding the Media Development Process promoted by Tales & Co. Based on note/TALES works and Original Work developed with Registered Creators, we create novels, manga, merchandise, etc., and self-publish them on note and X. Based on reader response, we partner with optimal media and video
Slide 53: Various projects by Tales & Co. are progressing
Various projects by Tales & Co. are progressing Positioned as a medium- to long-term growth area, we are promoting the expansion and development of our lineup of works. Leveraging our track record in game scenario production and know-how in creative support, we are also promoting the verification of
Slide 54: Discontinuous growth through business alliances and M&A
A B C D Discontinuous growth through the utilization of business alliances and M&A In addition to initiatives in each business domain, we have executed various corporate actions, including the capital and business alliance with Google. Going forward, we will actively pursue alliances and M&A with in
Slide 55: Leveraging note's strengths in the AI era
Leveraging note's strengths in the AI era to expand the value provided and extend the ecosystem Leveraging growth assets in AI / Business / Creative / Data to expand each business and form a content distribution infrastructure. Actively collaborating with partner companies, including capital and bus
Slide 56: Future Revenue Growth Image
Future Revenue Growth Image Significantly grow the top line in four areas: note, note pro/Corporate services, AI Business, and IP Business. Actively consider M&A to expand the note ecosystem and aim for discontinuous growth. M&A/Alliances Aim for discontinuous growth and consider as needed in Further
Slide 57: Outlook for the Next Fiscal Year (FY2027)
Outlook for the Next Fiscal Year (FY2027) The budget for FY2027 is currently being formulated. We will build upon the initiatives of each business and aim for revenue and profit growth in the next fiscal year. FY2027 Initiatives by Business Segment Aim for revenue and profit growth in FY2027 as well no
Slide 58: Mid-to-Long-Term Financial Targets
Mid-to-Long-Term Financial Targets(Unchanged from initial announcement) We have set a financial target of Consolidated Revenue of ¥10.0 billion and an EBITDA Margin of 30-40% around FY2028-2030. We aim to achieve both continuous revenue growth and profit expansion, and expand to a level where the Prim
Slide 59: note Aims to Be a City for Creators
note Aims to Be a “City for Creators” on the Internet We aim to become a hub for Creation and economic activities where all kinds of people, individuals and corporations, can gather. The “city” that note is aiming for is a place where individuals and corporations of all kinds gather. Here, people fr
Slide 60: Contents
Contents 01 Summary of Financial Results and Earnings Forecasts 02 Growth Strategies for note in the AI Era and Current Initiatives 03 Stock Status and IR note inc. 60
Slide 61: Shareholder Benefit Program
Shareholder Benefit Program To express our appreciation to our shareholders and to deepen their understanding of our business, we have established a Shareholder Benefit Program. Overview of the Program Shareholder Benefit Coupon (Sample) Eligibility Shareholders who hold 100 shares or more listed on th
Slide 62: Stock Information
Stock Information (As of the end of May 2026) Due to the business and capital alliance, the ratio of domestic and foreign corporations increased, and the number of shareholders grew by over 1,000 compared to last year. We will continue to actively enhance our IR activities and work toward improving
Slide 63: IR Initiatives
IR Initiatives We are actively expanding our IR activities to help more investors learn about note. Selected for JPX Speaking at Briefings for IR Communication and Startup 100 Individual Investors Question Box on note Based on two growth indicators—revenue CFO Kashima will be speaking at the Kobe We
Slide 64: Dissemination of IR Information
Dissemination of IR Information In addition to disclosing information on TDnet, our company disseminates IR information through our IR website, note, and other channels. Please check the following URL and QR code. IR website X (formerly Twitter) We post notices and various information for shareholde
Slide 65: IR note Magazine
IR note Magazine: Delivering IR Articles from Listed Companies In response to the increasing number of companies using note to disseminate IR information, we are operating IR note Magazine with the aim of providing IR information of the participating companies all at once to investors to help them m
Slide 66: Disclaimer
Disclaimer This material contains forward-looking statements. These statements are based solely on information available at the time such statements were made. Furthermore, such statements are not guarantees of future results and involve risks and uncertainties. Please note that actual results may d
Slide 67: note inc.
note inc.