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Appier Reports Impressive Financial Gains in Q3 FY26

In an impressive display of financial performance, Appier Group, Inc. has announced its results for the third quarter of fiscal year 2026. The company, known for its AI-driven marketing solutions, reported a staggering revenue figure of JPY 13.9 billion, marking a year-on-year increase of 21.8%. Additionally, organic revenue, which excludes external growth factors, grew by an impressive 27.1%, surpassing previously set forecasts of over 25%.

This significant growth can be attributed to Appier's continuous focus on enhancing operational efficiencies driven by AI. The company stated that its gross profit soared to a record JPY 8.5 billion, up 38% from the previous year, resulting in a remarkable gross margin of 61.3%. This figure represents an increase of 7.2 percentage points compared to the same quarter last year, showcasing the company's commitment to improving profitability.

Operating Income Doubles

Another highlight of the financial report was a more than doubled operating income, which jumped by 104.7% year-on-year to a record JPY 2.1 billion. This remarkable feat not only indicates an increase in operating efficiency but also showcases the effectiveness of the company’s refined operating model. The operating margin expanded to 15.2%, demonstrating that Appier is not merely increasing sales but doing so profitably.

The increase in revenue and profit is bolstered by strong growth in its primary markets, particularly in the United States and Europe, the Middle East, and Africa (EMEA), where organic revenue surged by 49%. The company also reported growth across major verticals, especially in E-commerce and Online Travel, which are pivotal to its revenue streams.

Exceptional Free Cash Flow

Appier's core free cash flow reached an impressive JPY 1.9 billion, boasting a staggering 501.3% increase year-on-year. This improved cash flow margin of 13.5% is indicative of the company's strong profitability and efficient cash management practices. Additionally, Appier has turned its core free cash flow positive for the first time in its history, with a total of JPY 1.25 billion generated year-to-date.

Upward Revision of FY26 Guidance

Given this stellar performance, Appier has revised its full-year guidance for FY26 upwards for the second consecutive quarter. The updated projections target gross profit at JPY 31.9 billion, with an operating income uptick to JPY 5.9 billion and a robust net income hitting JPY 5.0 billion. Moreover, the company announced an increased dividend forecast, now set at JPY 2.50 per share, reflecting its improved cash position and commitment to returning value to shareholders.

Dr. Chih-Han Yu, CEO and Co-founder of Appier, emphasized the importance of AI in driving business value, stating, "Our AI technology earns its place by growing our clients' business, and those partnerships deepen as the value compounds."

Strategic Focus on Long-term Value

As Appier continues to grow, it remains committed to a disciplined capital allocation strategy aimed at long-term shareholder value. By investing in vertical-specific AI for marketing and expanding its market reach, the company is poised to deliver additional shareholder returns in the future, including share buybacks as its cash generation increases.

In summary, Appier's latest report not only highlights its strong Q3 performance but also reflects the underlying effectiveness of its AI-driven business model. By maintaining momentum in organic growth and profitability while focusing on cash flow, the company has positioned itself for a successful remainder of FY26 and beyond.