Strike Group FY2026 Full Year: Deal wins beat plan, profit hits ¥10.4bn

Strike Group reported revenue of ¥27.077 billion, operating profit of ¥10.401 billion and net income of ¥7.139 billion for FY2026. As this was its first year preparing consolidated financial statements, the company did not disclose year-on-year comparisons. Revenue exceeded the plan announced in April by 20.2%, and the operating margin was 38.4%.

• Deal completions: 332 deals, above the plan of 306, for an achievement rate of 108.5%. There were 64 large deals.
• Revenue: A buildup of higher-value deals lifted revenue ¥4.554 billion above the plan of ¥22.523 billion.
• Transactions and new engagements: The company completed 637 transactions, or 107.1% of plan. New engagements totaled 1,213, equal to 95.5% of plan.
• Costs and profit: More consultants and incentive pay increased cost of sales, but operating profit still reached ¥10.4 billion.

A buildup of higher-value deals pushed revenue above plan and shaped the year's results. Sales activity was also supported by ties with major financial institutions and an expanded direct channel, as well as the full-scale launch of M&A strategy consulting and financial advisory (FA) alongside brokerage. M&A demand is growing not only for business succession at companies without successors, but also for growth and talent acquisition. Whether Strike Group can convert its efforts to broaden deal quality and advisory services into more completions will be a key focus.

Strike Group operates M&A support and related services as a single segment and does not separately disclose revenue or profit by business in its earnings release. As a result, year-on-year comparisons and margins by business are unavailable; activity must instead be assessed through consolidated results and deal-related indicators.

• M&A brokerage and FA: The group completed 332 deals in which it acted as broker or FA, and 637 transactions. These were 108.5% and 107.1% of plan, respectively.
• Large deals: There were 64 completed deals with revenue of at least ¥100 million per deal. Higher-value transactions helped drive revenue growth.
• New engagements: New engagements, including brokerage agreements with sellers, totaled 1,213, or 95.5% of plan.

The company is expanding staff exchanges with financial institutions and accounting firms and strengthening its referral-based deal sourcing. It also aims to improve expertise and ethics through team-based deal support and training. New engagements fell short of plan, while completions exceeded it, underscoring that revenue depends not only on winning mandates but also on executing deals through to completion.

At year-end, total assets were ¥33.829 billion and the equity ratio was 74.4%. Cash and cash equivalents stood at ¥27.658 billion, with operating cash flow exceeding spending on investment and dividends.

The year-end dividend for FY2026 was ¥65 per share. Strike Group split each share into three in April 2026. The annual dividend of ¥180 in FY2025, before the split, is equivalent to ¥60 on a post-split basis, making the increase ¥5 per share on a like-for-like basis.

From FY2027 through FY2029, the company plans to pay annual dividends of ¥80 per share, with ¥40 each at the interim and year-end. It targets a payout ratio of about 50% of net income and says it will raise the annual dividend above ¥80 if the ratio falls below 50%. Strike Group has also approved a share buyback running from November 2026 through August 2027, with a maximum of 3 million shares and ¥4 billion, to improve capital efficiency and shareholder returns.

For FY2027, Strike Group forecasts revenue of ¥30.05 billion, operating profit of ¥11.454 billion and net income of ¥7.863 billion. The company gives year-on-year increases of 11.0%, 10.1% and 10.1%, respectively. Comparisons with FY2026 actual results should be treated with care because it was the first year of consolidated reporting.

To support growth, the company aims to expand both referrals from financial institutions and accounting firms and direct engagements, while using M&A strategy consulting and FA to support clients from the early stages of a deal. It will continue hiring and training consultants and pursue overseas expansion, including in Taiwan. The forecast is based on certain assumptions, and actual results may vary with factors such as the time required for deal decisions and completion trends.

In its first year as a consolidated group, Strike Group added M&A strategy consulting and FA to its traditional brokerage-led support, building a group-wide structure to assist clients from the early stages of a deal through completion. Under its holding-company structure, the company plans to strengthen coordination among group businesses and bolster its position as a comprehensive M&A services provider.

• Broader customer reach: Strengthen both referrals through partnerships with financial institutions and accounting firms and direct engagements through its own channels.
• Expanded advisory services: Add strategy consulting and FA to M&A brokerage to handle deals with more complex and lengthy decision-making processes.
• Investment in talent: Continue hiring consultants and use team-based work and training to deepen expertise, knowledge of regulations and accounting systems, and deal execution capabilities.
• Overseas expansion: Seek to grow cross-border business in regions including Taiwan.

Deal completions exceeded plan, while new engagements fell short. Future growth will depend on widening the pipeline, developing newly hired talent and guiding deals through to completion while maintaining appropriate service quality.

M&A market growth is expected to provide support, but deal timing and transaction conditions remain uncertain. As industry rules evolve, the company identifies service quality and compliance as areas requiring continued attention.

• Timing of deal completions: More complex or prolonged decision-making could delay deals and affect the number of completions or the timing of revenue recognition.
• Hiring and training: Expansion depends on securing consultants with specialized skills. If recruitment or training does not proceed as planned, the company's ability to handle engagements could be constrained.
• Regulation and compliance: The company must comply with the Small and Medium-Sized M&A Guidelines and industry self-regulatory rules, requiring investment in systems and personnel. Lapses in quality or ethics could damage trust among clients and in the market.
• Uncertain external environment: Geopolitical risks, inflation and monetary policies in major economies could affect financial markets and corporate activity, influencing M&A decisions.

Growing demand for business succession, alongside more M&A for strategic growth, is a tailwind. But Strike Group will need both the ability to bring deals to completion and management systems that can respond to regulatory changes.