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Overview of Convano's Financial Performance

Convano Inc., headquartered in Shibuya, Tokyo, recently released its financial results for the fiscal year ending March 2026. The firm demonstrated an exceptional performance, driven primarily by its extensive network of over 500 healthcare institutions and a shift towards a stock-based revenue model focusing on AI, consulting, and healthcare services.

Significant Financial Highlights

In the fiscal year ending March 2026, Convano reported the following impressive metrics:

• - Revenue: ¥15.5 billion, representing an increase of 378.3% year-on-year.
• - Non-GAAP Operating Profit: ¥6.6 billion, a staggering growth of approximately 49-fold compared to the previous year.
• - Gross Profit Margin: 48.8%, an increase of 10.4 percentage points from the previous year.

The remarkable growth can primarily be attributed to an increase in highly profitable consulting and healthcare services, leading to a significant rise in recurring revenue and an enhanced revenue structure.

Growth Drivers: AI and Healthcare

Convano has developed five proprietary AI products that are supporting this growth:
1. AI Scoring
2. AI Business Automation Platform - axon
3. AI Recruitment Platform
4. AI Medical Cosme CRM
5. AI Procurement System for Medical Supplies

These products capitalize on data gathered from its extensive network of healthcare institutions, functioning as a SaaS-based stock revenue model. This innovation fosters a sustainable, recurring revenue stream.

Consulting Services Expansion

The consulting segment has seen astronomical growth, rising to ¥8.3 billion, which is an expansion of 2844.2% year-on-year. Convano provides comprehensive AI and DX support, covering everything from strategy development to operational maintenance. In the healthcare domain, revenue reached ¥2.3 billion, a significant growth of 2239.0% due to the introduction of exclusive products and cross-selling strategies.

2027 Forecast: A Conservative Approach

Looking ahead to the fiscal year ending March 2027, Convano has adopted a conservative planning approach for its earnings and mid-term strategies:

• - Excluding all blockchain-related revenues from forecasts.
• - Avoiding unconfirmed M&A or large projects.
• - Calculating forecasts based solely on existing contracts and performance.

These measures are aimed at minimizing downside risks while maintaining potential for upside growth. The forecast for FY 2027 includes:

• - Revenue: ¥26.7 billion, a 72.6% increase year-on-year.
• - Operating Profit: ¥8.9 billion, a 399.0% rise compared to the previous year.

Despite expected growth in consulting and healthcare sectors, Convano has not incorporated any projections related to cryptocurrency revenues or exit earnings into its plans.

Strategic Vision: Axon and M&A

Convano's growth strategy centers around its proprietary business automation platform, axon. The combination of AI-driven automation, SaaS-like recurring revenues, physical AI technologies, and a proactive M&A strategy aims to create exponential growth opportunities. The company plans to leverage its existing network of over 500 institutions to accelerate horizontal expansion of its AI products.

Future Outlook

Looking forward, Convano aims to further expand its stock-based revenue model across various sectors, including AI, consulting, healthcare, beauty, and investment, to enhance sustainable corporate value.

About Convano Inc.

Convano Inc. operates a chain of nail service under the FASTNAIL brand, embodying the mission of 'creating new value and expanding opportunities.' By utilizing its capabilities in digital marketing and AI system development, the company is poised to expand its presence in the beauty and lifestyle sectors. With plans for robust entry into the WEB3 infrastructure field, Convano strives to establish its status as a next-generation platform originating from Japan.

Corporate Website: Convano