Consolidated Financial Results for the six months ended December 31, 2025(Japanese GAAP)

Consolidated Financial Results

for the six months ended December 31, 2025 (Japanese GAAP)

January 30, 2026

Company name: AVANT GROUP CORPORATION Stock exchange listing: Tokyo Code number: 3836 URL: https://www.avantgroup.com/ Representative: (Title) Group CEO & Founder (Name) Tetsuji Morikawa

For inquiry: (Title) Director, Finance (Name) Naoyoshi Kasuga (Tel) 03-6388-6739 Securities report issue date: February 10, 2026 Dividend payment: -

Supplementary information for financial statements: Available

Explanatory meeting to be held: Yes (for analysts)

(Millions of yen, rounded down to the nearest unit)

1. Consolidated financial results for the six months ended December 31, 2025 (July 1, 2025 to December 31, 2025)

   1. Consolidated operating results (Percentages indicate year-on-year changes)

      	Net sales		EBITDA*		Operating profit		Ordinary profit		Net income attributable to owners of parent
      Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      December 31, 2025	15,202	8.5	2,991	7.5	2,745	8.2	2,731	7.5	1,744	10.1
      December 31, 2024	14,011	19.3	2,783	30.9	2,537	34.2	2,540	34.2	1,584	30.2

      (Note) Comprehensive income: Six months ended December 31, 2025 1,781 million yen (20.2%)

      Six months ended December 31, 2024 1,482 million yen (16.5%)

      	Earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      December 31, 2025	47.76	-
      December 31, 2024	43.44	-

      *EBITDA is operating profit + depreciation + amortization of goodwill

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio
      As of	Millions of yen	Millions of yen	%
      December 31, 2025	23,755	16,289	68.6
      June 30, 2025	24,373	15,597	63.9

      (Reference) Shareholders' equity As of December 31, 2025 16,289 million yen

      As of June 30, 2025 15,582 million yen

2. Dividends

   	Dividend per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   FY ended June 30, 2025	-	0.00	-	25.00	25.00
   FY ending June 30, 2026	-	0.00
   FY ending June 30, 2026 (forecast)			-	32.00	32.00

   Change of dividend forecast from the most recent dividend forecast : No

3. Consolidated earnings forecast for the fiscal year ending June 30, 2026 (July 1, 2025 to June 30, 2026)

(Percentages indicate year-on-year changes)

Change of earnings forecast from the most recent financial forecast : No

Notes

1. Significant changes in the scope of consolidation during the period : No

2. Adoption of specific accounting policies for consolidated semiannual financial statements

3. Changes in accounting policies, accounting estimates and restatement

   : No

   1. Changes in accounting policies due to revision of accounting standards : No

   2. Changes in accounting policies due to reasons other than item 1) above : No

   3. Changes in accounting estimates : No

   4. Restatement : No

4. Number of issued shares (common stock)

1. Total number of issued shares including treasury shares

2. Number of treasury shares held

3. Average number of shares (cumulative from the beginning of the fiscal year)

   Note: Beginning with the fiscal year ended June 30, 2024 (28th term), the Company introduced a share issuance trust for employees and executive officers, and from the fiscal year ending June 30, 2025 (29th term), a share issuance trust for directors. The shares of the Company held by these trusts are included in the number of treasury shares held at the end of the period and the average number of treasury shares held during the period.

   • Review of attached semiannual consolidated financial statements by a certified public accountant or an audit firm

   • Using forecasted information and others

: No

The forward-looking statements in this document are based on information currently available to the Company and certain assumptions that the Company deems reasonable and are not intended to be a promise by the Company that they will be achieved. Actual results may differ significantly due to various factors. Please refer to "Explanation on forward-looking statements such as consolidated earnings forecasts" on page 8 of the quarterly financial results (attached material) for the assumptions used in forecasting business performance and matters to be noted when relying on forecasts.

1. Overview of the operating results, etc 2

   1. Operating results for the current consolidated semiannual period 2

   2. Financial position for the current consolidated semiannual period 7

   3. Explanation on forward-looking statements such as consolidated earnings forecasts 9

2. Semiannual consolidated financial statements and notes 10

   1. Semiannual consolidated balance sheet 10

   2. Semiannual consolidated statement of income and semiannual consolidated statement of comprehensive income 12

      Semiannual consolidated statement of income 12

      Semiannual consolidated statement of comprehensive income 13

   3. Semiannual consolidated statement of cash flows 14

   4. Notes to semiannual consolidated financial statements 16

(Going concern assumption) 16

(Significant changes in the amount of shareholders' equity) 16

(Additional information) 16

(Segment information) 17

(Revenue recognition) 18

(Subsequent events) 18

1. Overview of the operating results, etc.

   1. Operating results for the current consolidated semiannual period

      Consolidated financial results for the semiannual cumulative period (hereinafter referred to as the "first half") are as follows.

      (Millions of yen, rounded down to the nearest unit)

      	Six months ended December 31, 2024	Six months ended December 31, 2025	Year-on-year change
      			Amount	%
      Net sales	14,011	15,202	1,191	8.5
      Operating profit	2,537	2,745	207	8.2
      Ordinary profit	2,540	2,731	190	7.5
      Net income attributable to owners of parent	1,584	1,744	160	10.1

      Regarding net sales, investment demand among our Japanese corporate clients for maintaining and strengthening competitiveness through "upgrading corporate management and business activities using data and digital technologies"-a medium- to long-term trend-has moderated somewhat following the completion of basic IT infrastructure upgrades but remains solid overall. With the Consolidated Financial Disclosure business and Digital Transformation Promotion business continuing to achieve strong sales growth, net sales increased to ¥15,202 million (8.5% increase year-on-year).

      Regarding profits, despite increases in personnel, hiring and IT expenses in line with business expansion, office expenses associated with office expansion, and investment expenses to achieve future growth centered on strengthening the software business, profits increased due to improved profit margins from growth in the software business and a decrease in outsourced processing expenses to supplement inhouse resources. Operating profit was ¥2,745 million (8.2% increase year-on-year), ordinary profit was

      ¥2,731 million (7.5% increase year-on-year), and net income attributable to owners of parent was ¥1,744 million (10.1% increase year-on-year).

      Effective from the semiannual period of the current fiscal year, the Company has reviewed its business segment classification method and has changed the classification of its operating segments so that "Consolidated Financial Disclosure Business," "Digital Transformation Promotion Business," and "Management Solutions Business" consist of one company per segment, and other small companies are categorized as "Other." In accordance with this change, results for the same period of the previous fiscal year for each segment have been restated to reflect the amended segment categories.

      The status of each segment is as follows.

      1. Net sales

         (Millions of yen, rounded down to the nearest unit)

         	Six months ended December 31, 2024	Six months ended December 31, 2025	Year-on-year change
         			Amount	%
         Consolidated Financial Disclosure Business	4,038	4,719	680	16.9
         Digital Transformation Promotion Business	5,125	5,684	558	10.9
         Management Solutions Business	4,816	4,743	(72)	(1.5)
         Other	208	244	35	16.8
         Elimination of inter-segment transactions	(178)	(188)	(10)	-
         Consolidated net sales	14,011	15,202	1,191	8.5

      2. Operating profit

(Millions of yen, rounded down to the nearest unit)

In the Consolidated Financial Disclosure Business, net sales increased to ¥4,719 million (16.9% increase year-on-year) as in addition to a transfer of some maintenance service transactions from the Management Solutions Business starting in the semiannual period of the current fiscal year, the outsourcing business continued to maintain a high growth rate. In terms of profitability, operating profit increased to ¥1,535 million (42.7% increase year-on-year), significantly outpacing net sales growth due to an improved profit margin resulting from the effects of improved productivity and a revised pricing strategy in the software business, despite factors that increased costs, such as increased personnel expenses and office expenses due to an increase in the number of employees and the expansion of office space.

In the Digital Transformation Promotion Business, while demand has moderated somewhat as client needs have become more sophisticated, demand for leveraging data in management and business decision-making remains solid. Sales growth was driven by an increase in projects centered on "cloud and data platform development", resulting in net sales of ¥5,684 million (10.9% increase year-on-year). Although personnel expenses rose due to headcount increases to support sales growth, outsourcing costs to supplement internal resources declined, leading to operating profit of ¥1,114 million (17.6% increase year-on-year).

In the Management Solutions Business, net sales increased slightly to ¥4,743 million (1.5% decrease year-on-year), despite an increase in software business sales, due to the transfer of some maintenance service transactions to the Consolidated Financial Disclosure Business from the semiannual period of the current fiscal year. Operating profit was ¥539 million (43.4% decrease year-on-year) due to the above-mentioned factors that kept the sales growth at a low level, as well as an increase in personnel expenses to secure personnel for future growth and in research and development expenses and marketing expenses and outsourcing expenses to strengthen the software business.