Interim report
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Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Consolidated Financial Results for the Nine Months Ended November 30, 2025 (under IFRS) January 14, 2026 Company name: WingArc1st Inc. Listing: Tokyo Stock Exchange Securities code: 4432 URL: https://www.wingarc.com/en/ Representative: Jun Tanaka, President, Executive Officer and CEO Inquiries: Taisuke Fujimoto, Director, Executive Officer and CFO TEL: +81-3-5962-7400 Scheduled date to commence dividend payments: – Preparation of supplementary material on financial results: Yes Holding of financial results presentation meeting: Yes (for institutional investors and analysts) (Amounts are rounded down to the nearest million yen.) 1. Consolidated financial results for the nine months ended November 30, 2025 (from March 1, 2025 to November 30, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Revenue Operating profit Profit before income taxes Profit Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % November 30, 2025 22,502 4.1 6,211 (5.0) 6,217 (5.1) 4,406 (5.9) November 30, 2024 21,610 9.8 6,536 4.5 6,551 4.8 4,685 4.7 Profit attributable to equity holders of the parent Total comprehensive income Basic earnings per share Diluted earnings per share Nine months ended Millions of yen % Millions of yen % Yen Yen November 30, 2025 4,422 (6.0) 7,090 58.8 127.65 126.89 November 30, 2024 4,702 4.5 4,465 (20.1) 136.45 135.27 Note: Effective the fiscal year ended February 28, 2022, the Company has adopted a share-based remuneration system which utilizes an officer remuneration BIP trust, and shares of the Company held by the trust are included in treasury shares. In line with this, for the calculation of basic earnings per share and diluted earnings per share, the number of the Company’s own shares held by the trust was included in the number of treasury shares, which are excluded from the calculation for the weighted average number of ordinary shares outstanding during the period. (Reference) EBITDA Nine months ended Millions of yen % November 30, 2025 7,352 (3.3) November 30, 2024 7,603 5.6 Note: The Group uses EBITDA as an important management indicator. For information about the indicator, refer to “(Notes when referring to summary information)” below.
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(2) Consolidated financial position Total assets Total equity Equity attributable to equity holders of the parent Ratio of equity attributable to equity holders of the parent As of Millions of yen Millions of yen Millions of yen % November 30, 2025 72,210 45,155 45,117 62.5 February 28, 2025 68,436 41,846 41,792 61.1 2. Cash dividends Dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Annual total Yen Yen Yen Yen Yen Fiscal year ended February 28, 2025 0.00 42.00 0.00 62.00 104.00 Fiscal year ending February 28, 2026 0.00 52.00 0.00 Fiscal year ending February 28, 2026 (Forecast) 52.00 104.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Consolidated earnings forecasts for the fiscal year ending February 28, 2026 (from March 1, 2025 to February 28, 2026) (Percentages indicate year-on-year changes.) Revenue Operating profit EBITDA Profit attributable to equity holders of the parent Fiscal year ending Millions of yen % Millions of yen % Millions of yen % Millions of yen % February 28, 2026 31,200 8.7 8,950 8.9 10,460 8.4 6,400 7.9 Note: Revisions to the earnings forecasts most recently announced: None * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None
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(3) Number of issued shares (ordinary shares) a. Total number of issued shares at the end of the period (including treasury shares) As of November 30, 2025 35,000,970 shares As of February 28, 2025 34,932,870 shares b. Number of treasury shares at the end of the period As of November 30, 2025 329,732 shares As of February 28, 2025 389,428 shares c. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) For the nine months ended November 30, 2025 34,646,094 shares For the nine months ended November 30, 2024 34,462,020 shares * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None * Proper use of earnings forecasts, and other special items (Caution concerning forward-looking statements) The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual business and other results may differ substantially due to various factors. (Notes when referring to summary information) 1. EBITDA = Operating profit + Depreciation and amortization expenses 2. From the fiscal year ended February 29, 2020, due to the adoption of IFRS 16, the right of use related to office leases is recognized as a right-of-use asset, and depreciation related to this asset is also recorded. However, in the calculation of EBITDA, depreciation related to this right-of-use asset is excluded from “Depreciation and amortization expenses.” 3. EBITDA is not a measure prescribed by IFRS, but rather is a financial measure that the Group believes is useful for investors to evaluate the Group’s performance. 4. EBITDA should not be considered as an alternative measure to other measures presented in accordance with IFRS, as it excludes some of the items that affect profit and has significant limitations as a means of analysis. EBITDA for the Group may not be comparable to the measures used by other companies in the industry due to different calculation methods from those used for the same or similar measures. As a result, its usefulness may be reduced.
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WingArc1st Inc. Consolidated Financial Results - 1 - Condensed Quarterly Consolidated Financial Statements (1) Condensed quarterly consolidated statements of financial position (Unit: thousand yen) As of February 28, 2025 As of November 30, 2025 Assets Current assets Cash and cash equivalents 14,715,413 12,222,562 Trade and other receivables 2,451,376 2,989,553 Other financial assets 81,750 98,511 Other current assets 575,509 912,953 Total current assets 17,824,050 16,223,581 Non-current assets Property and equipment 2,076,237 1,739,951 Goodwill 27,674,087 30,155,126 Other intangible assets 15,055,624 14,445,506 Investments accounted for using equity method 454,516 461,720 Other financial assets 5,315,992 9,135,502 Other non-current assets 36,443 49,231 Total non-current assets 50,612,902 55,987,038 Total assets 68,436,952 72,210,620 Liabilities and equity Liabilities Current liabilities Trade and other payables 988,411 1,354,761 Contract liabilities 8,082,590 8,879,160 Current portion of long-term borrowings 1,452,125 1,432,784 Income taxes payable 1,291,671 413,250 Other financial liabilities 613,887 893,362 Other current liabilities 2,411,553 1,946,495 Total current liabilities 14,840,239 14,919,814 Non-current liabilities Long-term borrowings 7,106,203 6,396,614 Provisions 192,820 245,166 Other financial liabilities 243,757 54,550 Deferred tax liabilities 4,207,737 5,439,335 Total non-current liabilities 11,750,519 12,135,667 Total liabilities 26,590,758 27,055,481 Equity Issued capital 1,228,008 1,245,493 Capital surplus 12,399,974 12,483,598 Other components of equity 2,059,091 4,741,988 Retained earnings 26,611,769 27,075,271 Treasury shares (506,450) (428,959) Equity attributable to equity holders of the parent 41,792,393 45,117,392 Non-controlling interests 53,800 37,746 Total equity 41,846,194 45,155,138 Total liabilities and equity 68,436,952 72,210,620
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WingArc1st Inc. Consolidated Financial Results - 2 - (2) Condensed quarterly consolidated statements of profit or loss and condensed quarterly consolidated statements of comprehensive income (Condensed quarterly consolidated statements of profit or loss) (Unit: thousand yen) Nine months ended November 30, 2024 Nine months ended November 30, 2025 Revenue 21,610,900 22,502,637 Personnel expenses except those included in research and development costs (5,250,770) (5,949,565) Research and development costs (2,456,551) (2,710,692) Outsourcing expenses (2,122,947) (2,411,670) Commission expenses (987,205) (859,084) Other operating income 20,307 31,423 Other operating expenses (4,277,281) (4,391,736) Operating profit 6,536,450 6,211,311 Finance income 79,793 93,920 Finance costs (64,434) (105,893) Share of profit (loss) of investments accounted for using equity method – 18,453 Profit before income taxes 6,551,809 6,217,792 Income taxes (1,866,610) (1,811,242) Profit 4,685,198 4,406,549 Profit attributable to: Equity holders of the parent 4,702,558 4,422,603 Non-controlling interests (17,359) (16,053) Profit 4,685,198 4,406,549 Earnings per share Basic earnings per share (yen) 136.45 127.65 Diluted earnings per share (yen) 135.27 126.89
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WingArc1st Inc. Consolidated Financial Results - 3 - (Condensed quarterly consolidated statements of comprehensive income) (Unit: thousand yen) Nine months ended November 30, 2024 Nine months ended November 30, 2025 Profit 4,685,198 4,406,549 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income (226,214) 2,579,615 Total of items that will not be reclassified to profit or loss (226,214) 2,579,615 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 6,174 104,511 Total of items that may be reclassified to profit or loss 6,174 104,511 Other comprehensive income, net of income taxes (220,039) 2,684,127 Total comprehensive income, net of income taxes 4,465,159 7,090,676 Attributable to: Equity holders of the parent 4,482,518 7,106,730 Non-controlling interests (17,359) (16,053) Total comprehensive income 4,465,159 7,090,676
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WingArc1st Inc. Consolidated Financial Results - 4 - (3) Condensed quarterly consolidated statement of changes in equity Nine months ended November 30, 2024 (Unit: thousand yen) Equity attributable to equity holders of the parent Issued capital Capital surplus Other components of equity Exchange differences on translation of foreign operations Stock acquisition rights Financial assets measured at fair value through other comprehensive income Total As of March 1, 2024 1,199,817 12,250,296 182,288 5,586 2,300,096 2,487,971 Profit – Other comprehensive income 6,174 (226,214) (220,039) Comprehensive income – – 6,174 – (226,214) (220,039) Dividends – Share-based payment transactions 12,252 – Exercise of stock acquisition rights 18,486 18,486 (972) (972) Total transactions with equity holders 18,486 30,738 – (972) – (972) As of November 30, 2024 1,218,303 12,281,034 188,463 4,614 2,073,881 2,266,959 (Unit: thousand yen) Equity attributable to equity holders of the parent Non-controlling interests Total Retained earnings Treasury shares Total As of March 1, 2024 23,700,677 (564,305) 39,074,456 21,993 39,096,449 Profit 4,702,558 4,702,558 (17,359) 4,685,198 Other comprehensive income (220,039) (220,039) Comprehensive income 4,702,558 – 4,482,518 (17,359) 4,465,159 Dividends (3,018,455) (3,018,455) (3,018,455) Share-based payment transactions 57,855 70,107 70,107 Exercise of stock acquisition rights 36,000 36,000 Total transactions with equity holders (3,018,455) 57,855 (2,912,347) – (2,912,347) As of November 30, 2024 25,384,780 (506,450) 40,644,627 4,633 40,649,261
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WingArc1st Inc. Consolidated Financial Results - 5 - Nine months ended November 30, 2025 (Unit: thousand yen) Equity attributable to equity holders of the parent Issued capital Capital surplus Other components of equity Exchange differences on translation of foreign operations Stock acquisition rights Financial assets measured at fair value through other comprehensive income Total As of March 1, 2025 1,228,008 12,399,974 156,416 4,104 1,898,570 2,059,091 Profit – Other comprehensive income 104,511 2,579,615 2,684,127 Comprehensive income – – 104,511 – 2,579,615 2,684,127 Dividends – Share-based payment transactions 65,827 – Exercise of stock acquisition rights 17,484 17,484 (919) (919) Forfeiture of stock acquisition rights 310 (310) (310) Purchase of treasury shares – Total transactions with equity holders 17,484 83,623 – (1,229) – (1,229) As of November 30, 2025 1,245,493 12,483,598 260,927 2,874 4,478,186 4,741,988 (Unit: thousand yen) Equity attributable to equity holders of the parent Non-controlling interests Total Retained earnings Treasury shares Total As of March 1, 2025 26,611,769 (506,450) 41,792,393 53,800 41,846,194 Profit 4,422,603 4,422,603 (16,053) 4,406,549 Other comprehensive income 2,684,127 2,684,127 Comprehensive income 4,422,603 – 7,106,730 (16,053) 7,090,676 Dividends (3,959,100) (3,959,100) (3,959,100) Share-based payment transactions 77,667 143,495 143,495 Exercise of stock acquisition rights 34,050 34,050 Forfeiture of stock acquisition rights – – Purchase of treasury shares (176) (176) (176) Total transactions with equity holders (3,959,100) 77,490 (3,781,732) – (3,781,732) As of November 30, 2025 27,075,271 (428,959) 45,117,392 37,746 45,155,138
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WingArc1st Inc. Consolidated Financial Results - 6 - (4) Condensed quarterly consolidated statements of cash flows (Unit: thousand yen) Nine months ended November 30, 2024 Nine months ended November 30, 2025 Cash flows from operating activities Profit before income taxes 6,551,809 6,217,792 Depreciation and amortization expenses 1,317,200 1,347,418 Finance income (80,891) (93,920) Finance costs 59,015 112,301 Decrease (increase) in trade and other receivables (603,657) (538,177) Increase (decrease) in trade and other payables 42,545 228,545 Increase (decrease) in contract liabilities 1,436,378 735,806 Others (128,257) (84,124) Subtotal 8,594,143 7,925,643 Interest and dividends received 73,133 93,897 Dividends received from investments accounted for using equity method – 11,250 Interest paid (43,964) (89,772) Income taxes paid (2,600,173) (2,808,310) Net cash flows from operating activities 6,023,138 5,132,707 Cash flows from investing activities Purchase of property and equipment (339,941) (119,767) Purchase of intangible assets (332,052) (313,534) Payments for leasehold and guarantee deposits (22,549) (1,509) Proceeds from refund of leasehold and guarantee deposits 9,418 206 Proceeds from sale and redemption of investments 622 2,027 Payments for acquisition of subsidiaries (410,059) (2,266,304) Others 1,720 (9,665) Net cash flows used in investing activities (1,092,841) (2,708,548) Cash flows from financing activities Repayments of lease liabilities (312,032) (315,965) Repayments of long-term borrowings (752,659) (738,473) Dividends paid (3,006,310) (3,944,227) Proceeds from issuance of new shares 36,000 34,050 Purchase of treasury shares – (176) Others (1,799) – Net cash flows used in financing activities (4,036,802) (4,964,792) Net foreign exchange differences 6,043 47,782 Net increase (decrease) in cash and cash equivalents 899,538 (2,492,850) Cash and cash equivalents at the beginning of the period 12,986,833 14,715,413 Cash and cash equivalents at the end of the period 13,886,371 12,222,562