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 Six Months Ended August 31, 2026 (under IFRS) October 14, 2026 Company name: WingArc1st Inc. Listing: Tokyo Stock Exchange Securities code: 4432 URL: https://ir.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 file semi-annual securities report: October 14, 2026 Scheduled date to commence dividend payments: November 9, 2026 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 six months ended August 31, 2026 (from March 1, 2026 to August 31, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Revenue Operating profit Profit before income taxes Profit Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % August 31, 2026 16,498 12.1 5,168 25.8 5,306 28.0 3,782 29.1 August 31, 2025 14,712 (1.1) 4,108 (17.2) 4,144 (17.0) 2,929 (18.3) Profit attributable to equity holders of the parent Total comprehensive income Basic earnings per share Diluted earnings per share Six months ended Millions of yen % Millions of yen % Yen Yen August 31, 2026 3,796 29.2 3,967 (13.1) 109.26 108.80 August 31, 2025 2,938 (18.3) 4,567 24.1 84.84 84.31 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 Six months ended Millions of yen % August 31, 2026 5,921 21.9 August 31, 2025 4,856 (14.3) 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 % August 31, 2026 76,745 49,280 49,261 64.2 February 28, 2026 73,490 47,032 47,000 64.0 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, 2026 0.00 52.00 0.00 52.00 104.00 Fiscal year ending February 28, 2027 0.00 54.00 Fiscal year ending February 28, 2027 (Forecast) 0.00 54.00 108.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Consolidated earnings forecasts for the fiscal year ending February 28, 2027 (from March 1, 2026 to February 28, 2027) (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, 2027 34,300 10.8 10,600 17.9 12,100 14.9 7,420 14.2 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 August 31, 2026 35,056,670 shares As of February 28, 2026 35,009,470 shares b. Number of treasury shares at the end of the period As of August 31, 2026 276,110 shares As of February 28, 2026 329,732 shares c. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) For the six months ended August 31, 2026 34,742,006 shares For the six months ended August 31, 2025 34,635,621 shares * Semi-annual financial results reports are exempt from reviews conducted by certified public accountants or an audit corporation. * 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 Semi-annual Consolidated Financial Statements (1) Condensed semi-annual consolidated statements of financial position (Unit: thousand yen) As of February 28, 2026 As of August 31, 2026 Assets Current assets Cash and cash equivalents 13,339,865 16,608,224 Trade and other receivables 3,899,849 3,231,070 Other financial assets 96,735 109,304 Other current assets 676,673 1,253,153 Total current assets 18,013,124 21,201,753 Non-current assets Property and equipment 1,859,489 2,097,297 Goodwill 30,209,905 30,236,928 Other intangible assets 14,199,585 13,752,566 Investments accounted for using equity method 490,589 515,989 Other financial assets 8,667,453 8,888,429 Other non-current assets 50,663 52,940 Total non-current assets 55,477,686 55,544,150 Total assets 73,490,811 76,745,904 Liabilities and equity Liabilities Current liabilities Trade and other payables 1,128,270 1,163,058 Contract liabilities 8,091,691 9,726,189 Current portion of long-term borrowings 1,431,236 1,429,231 Income taxes payable 1,266,199 1,288,652 Other financial liabilities 593,083 539,004 Other current liabilities 2,790,033 2,545,623 Total current liabilities 15,300,514 16,691,760 Non-current liabilities Long-term borrowings 5,685,875 4,977,047 Provisions 245,638 244,876 Other financial liabilities 147,698 412,281 Deferred tax liabilities 5,078,489 5,139,483 Total non-current liabilities 11,157,702 10,773,689 Total liabilities 26,458,217 27,465,450 Equity Issued capital 1,247,675 1,259,794 Capital surplus 12,532,674 12,540,037 Other components of equity 4,495,920 4,688,408 Retained earnings 29,152,827 31,132,989 Treasury shares (428,959) (359,251) Equity attributable to equity holders of the parent 47,000,138 49,261,978 Non-controlling interests 32,455 18,475 Total equity 47,032,593 49,280,453 Total liabilities and equity 73,490,811 76,745,904
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WingArc1st Inc. Consolidated Financial Results - 2 - (2) Condensed semi-annual consolidated statements of profit or loss and condensed semi-annual consolidated statements of comprehensive income (Condensed semi-annual consolidated statements of profit or loss) (Unit: thousand yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Revenue 14,712,285 16,498,365 Personnel expenses except those included in research and development costs (3,891,530) (4,305,388) Research and development costs (1,814,127) (1,816,785) Outsourcing expenses (1,559,306) (1,744,141) Commission expenses (570,440) (560,595) Other operating income 28,787 24,371 Other operating expenses (2,796,807) (2,927,084) Operating profit 4,108,859 5,168,740 Finance income 82,553 174,617 Finance costs (77,725) (73,211) Share of profit (loss) of investments accounted for using equity method 31,122 36,650 Profit before income taxes 4,144,810 5,306,796 Income taxes (1,215,422) (1,524,642) Profit 2,929,387 3,782,153 Profit attributable to: Equity holders of the parent 2,938,535 3,796,133 Non-controlling interests (9,147) (13,980) Profit 2,929,387 3,782,153 Earnings per share Basic earnings per share (yen) 84.84 109.26 Diluted earnings per share (yen) 84.31 108.80
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WingArc1st Inc. Consolidated Financial Results - 3 - (Condensed semi-annual consolidated statements of comprehensive income) (Unit: thousand yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Profit 2,929,387 3,782,153 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income 1,614,790 132,738 Total of items that will not be reclassified to profit or loss 1,614,790 132,738 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 22,895 53,014 Total of items that may be reclassified to profit or loss 22,895 53,014 Other comprehensive income, net of income taxes 1,637,686 185,752 Total comprehensive income, net of income taxes 4,567,074 3,967,906 Attributable to: Equity holders of the parent 4,576,222 3,981,886 Non-controlling interests (9,147) (13,980) Total comprehensive income 4,567,074 3,967,906
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WingArc1st Inc. Consolidated Financial Results - 4 - (3) Condensed semi-annual consolidated statement of changes in equity Six months ended August 31, 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 22,895 1,614,790 1,637,686 Comprehensive income – – 22,895 – 1,614,790 1,637,686 Dividends – Share-based payment transactions 17,980 – Exercise of stock acquisition rights 13,941 13,941 (733) (733) Forfeiture of stock acquisition rights 310 (310) (310) Purchase of treasury shares – Total transactions with equity holders 13,941 32,232 – (1,043) – (1,043) As of August 31, 2025 1,241,950 12,432,207 179,311 3,060 3,513,361 3,695,733 (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 2,938,535 2,938,535 (9,147) 2,929,387 Other comprehensive income 1,637,686 1,637,686 Comprehensive income 2,938,535 – 4,576,222 (9,147) 4,567,074 Dividends (2,151,660) (2,151,660) (2,151,660) Share-based payment transactions 77,667 95,647 95,647 Exercise of stock acquisition rights 27,150 27,150 Forfeiture of stock acquisition rights – – Purchase of treasury shares (176) (176) (176) Total transactions with equity holders (2,151,660) 77,490 (2,029,039) – (2,029,039) As of August 31, 2025 27,398,644 (428,959) 44,339,576 44,652 44,384,229
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WingArc1st Inc. Consolidated Financial Results - 5 - Six months ended August 31, 2026 (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, 2026 1,247,675 12,532,674 368,433 2,759 4,124,727 4,495,920 Profit – Other comprehensive income 53,014 132,738 185,752 Comprehensive income – – 53,014 – 132,738 185,752 Dividends – Share-based payment transactions (4,755) – Exercise of stock acquisition rights 12,118 12,118 (637) (637) Transfer from other components of equity to retained earnings 7,372 7,372 Total transactions with equity holders 12,118 7,362 – (637) 7,372 6,735 As of August 31, 2026 1,259,794 12,540,037 421,447 2,122 4,264,838 4,688,408 (Unit: thousand yen) Equity attributable to equity holders of the parent Non-controlling interests Total Retained earnings Treasury shares Total As of March 1, 2026 29,152,827 (428,959) 47,000,138 32,455 47,032,593 Profit 3,796,133 3,796,133 (13,980) 3,782,153 Other comprehensive income 185,752 185,752 Comprehensive income 3,796,133 – 3,981,886 (13,980) 3,967,906 Dividends (1,808,599) (1,808,599) (1,808,599) Share-based payment transactions 69,708 64,952 64,952 Exercise of stock acquisition rights 23,600 23,600 Transfer from other components of equity to retained earnings (7,372) – – Total transactions with equity holders (1,815,972) 69,708 (1,720,046) – (1,720,046) As of August 31, 2026 31,132,989 (359,251) 49,261,978 18,475 49,280,453
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WingArc1st Inc. Consolidated Financial Results - 6 - (4) Condensed semi-annual consolidated statements of cash flows (Unit: thousand yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Cash flows from operating activities Profit before income taxes 4,144,810 5,306,796 Depreciation and amortization expenses 885,485 887,955 Finance income (82,553) (169,613) Finance costs 65,636 76,693 Decrease (increase) in trade and other receivables 94,924 668,778 Increase (decrease) in trade and other payables 2,432 32,635 Increase (decrease) in contract liabilities 1,229,133 1,634,498 Increase (decrease) in other current liabilities (202,048) (361,851) Others (413,391) (551,026) Subtotal 5,724,430 7,524,867 Interest and dividends received 93,780 180,827 Interest paid (61,406) (60,460) Income taxes paid (1,418,220) (1,358,111) Net cash flows from operating activities 4,338,583 6,287,123 Cash flows from investing activities Purchase of property and equipment (84,479) (173,087) Purchase of intangible assets (238,070) (154,705) Payments for leasehold and guarantee deposits (226) (30,560) Proceeds from refund of leasehold and guarantee deposits 206 5,070 Proceeds from sale and redemption of investments 2,027 54,633 Payments for acquisition of subsidiaries (2,266,304) – Others (8,906) (50,949) Net cash flows used in investing activities (2,595,753) (349,598) Cash flows from financing activities Repayments of lease liabilities (211,463) (215,533) Repayments of long-term borrowings (737,463) (716,289) Dividends paid (2,147,751) (1,808,289) Proceeds from issuance of new shares 27,150 23,600 Purchase of treasury shares (176) – Net cash flows used in financing activities (3,069,705) (2,716,512) Net foreign exchange differences 1,556 47,347 Net increase (decrease) in cash and cash equivalents (1,325,317) 3,268,359 Cash and cash equivalents at the beginning of the period 14,715,413 13,339,865 Cash and cash equivalents at the end of the period 13,390,095 16,608,224