Atrae, Inc. (6194) Q2 2026 Earnings Call Transcript

Atrae, Inc. Q2 Financial Results Briefing for the Fiscal Year Ending September 2026 May 14, 2026

Presentation Moderator: Thank you very much for taking time out of your busy schedules today to watch the live webcast of Atrae, Inc.’s Q2 Financial Results Briefing for the Fiscal Year Ending September 2026. Today’s session will begin with an explanation of the financial results by Representative Director, President and CEO Arai, followed by a question-and-answer session. We will take your questions in the Q&A section. You may enter your questions in the Q&A section during Arai’s presentation. President Arai, please begin.

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Arai: Thank you for the introduction. I am Arai of Atrae. Let me begin. Thank you for joining us. First, here is today’s agenda. It includes a company overview, results for Q2 of the fiscal year ending September 2026, enhanced shareholder returns, and an overview of our business, followed by reference materials at the end.

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First of all, let me give you an overview of our company. This is our vision. What we aspire to achieve is to create a company that attracts people from all over the world. The thoughts behind this vision are as follows: We are committed to creating an organization and businesses that all employees can take pride in, and we aim to remain an attractive company that people involved with us will want to support as fans. Furthermore, as a global company representing Japan, we aspire to become an entity that is needed by people around the world. These aspirations are embodied in this vision.

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In addition, our mission—our raison d’être—is to create businesses that expand people’s potential through technology and to realize a society where people find fulfillment in both work and life. We refer to this business domain as “People Tech,” a term we have coined. Let me read a passage here. We believe that not only building a highly engaged organization within our own company, but also expanding people’s potential across society and increasing the number of individuals who feel fulfilled in their work will enhance productivity, drive economic development, and ultimately lead to the realization of a society where people feel a strong sense of purpose in life. By leveraging technology, we aim to deliver value faster and to more people, thereby contributing to the advancement of humanity and society. Through initiatives in this business domain, we aim to develop our services, achieve sustainable growth, and continue taking on challenges that create meaningful value for society.

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Next, I would like to explain the philosophy that Atrae values. We believe that a company—especially a jointstock company—is a mechanism created by humanity to enable all people involved to achieve happiness. Those involved include our employees, the customers who use our services and pay for the value we provide, the shareholders who support our activities, the partners who work with us to advance our businesses, and society as a whole. We believe that the systems of joint-stock companies and capitalism were created through human wisdom to ensure that all these stakeholders can pursue happiness.

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Our vision is to create a company that attracts people from all over the world, and we believe that realizing this vision requires continuously driving this cycle. It is no exaggeration to say that management itself is the act of keeping this cycle in motion, and at the very foundation of it is the happiness of our employees. In particular, in a knowledge-based society such as ours, we believe that people are a company’s greatest source of competitiveness. Rather than relying on large facilities or proprietary technologies, our greatest strength lies in having talented and motivated individuals. By pursuing the fulfillment and happiness of our employees, we are able to attract and empower exceptional talent. This, in turn, leads to the creation of valuable products. When users, companies, and clients recognize the value of these products and pay appropriate compensation for them—and when we manage that compensation appropriately—we generate solid profits, which then translate into returns to our shareholders. Furthermore, by attracting additional investment from shareholders, we can broaden our contributions to society. Not only through business investment, but also through job creation, tax payments, and patronage in areas such as the arts and sports, including donations and other forms of social contribution. This, in turn, reinforces employees’ pride in the Company, enabling us to hire even more outstanding people. They take pride in their organization. It in turn helps us to attract even better talent. As this cycle continues to turn and expand on a global scale, we believe we will move closer to realizing our vision.

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Turning to today’s main topic, I would like to explain the results for Q2 of the fiscal year ending September 2026. First, net sales for the first six months totaled JPY3,821 million. This represents a 7.2% increase YoY and progress of 44.4% against the disclosed plan. Operating profit was JPY568 million, down 17.2% from the previous year, but at 51.6% of the disclosed plan. As for the business situation, Green’s Q2 net sales declined 6.1% YoY. As you can see, Green has not yet entered a recovery trend in terms of sales. On the other hand, through efforts to secure and focus on target talent and through product improvements such as Green AI, the document screening pass rate has improved by about two percentage points. We are gradually making progress not only in quantity but also in quality. Wevox, on the other hand, exceeded the plan and recorded JPY1.029 billion in net sales, up 43.3% YoY. Overall, Wevox continues to perform extremely well. With the accumulation of rare and proprietary data, Wevox has established an unshakable competitive advantage even in the age of AI. Despite recent discussions such as “SaaS is dead,” Wevox maintains strong competitiveness because it possesses scarce, proprietary data and because it is a service whose value is created precisely through direct use by a large number of employees. This structure gives Wevox a competitive edge that remains solid even in the AI era.

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Wevox itself is also undergoing a major update. It has evolved from a so called “survey tool” into a full-fledged product that supports the enhancement of organizational capabilities. I will explain the details later. Wevox has also revamped its pricing plan. The full-scale renewal began in April and is progressing as expected. As a result, we anticipate an improvement in unit price. As for Qooa, which we are preparing to launch as a new business, it is progressing extremely well toward its official release in Q4. We are currently conducting test marketing with a limited number of users, and we expect to be able to officially release the product to users in Q4. Finally, here are the topics. The YoY decrease in operating profit for the first six months was the result of solid investments in the development of new features for Wevox, advertising expenses for both Wevox and Green, and human capital investments such as higher employee salary levels and personnel expenses associated with hiring. As a result of executing these investments appropriately, operating income declined YoY. As I mentioned at the previous financial results briefing, we are committed to executing investments properly, and we evaluate that our investment execution is progressing smoothly in line with the plan. As for our capital policy, in order to enhance the attractiveness of investing in Atrae’s stock, we plan to introduce our first-ever shareholder benefit program. In addition, we plan to hold a total of six briefings for individual investors during this fiscal year. We hope that not only institutional investors but also many individual investors will become fans and support us, thereby helping to firmly sustain our stock price.

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Here are the details of net sales. As I explained earlier, Green’s net sales declined 6.1% YoY, coming in at JPY1,023 million. Wevox, on the other hand, exceeded the plan with a 43.3% YoY increase, recording JPY1.029 billion. For the first time since the launch of Wevox, its quarterly net sales surpassed those of Green. Operating profit also increased 24.8%, with no significant change in overall trend.

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Continuing on, here are the details of operating expenses. Cost of sales may appear to have increased slightly, but this is due to the inclusion of some spot sales from Wevox and the temporary recording of costs related to new development in cost of sales. We do not consider this to be a significant issue. Net sales for the period were JPY2,063 million, and Green’s advertising expenses accounted for a little over 30% of that amount. Advertising expenses remained roughly at the same level, with a slight increase. For Wevox, we reduced advertising and marketing activities this quarter and shifted our strategic focus toward community-driven expansion. As a result, advertising expenses were contained and came in at a lower level. We expect to continue with this strategic direction in Q3 and Q4 as well.

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Next, this page shows the quarterly performance trends. As you can see, net sales for Q2 were JPY2,063 million. Looking at the results from FY2023 onward, this represents the second-highest quarterly net sales level in our history.

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Next, I would like to explain how we are strengthening shareholder returns. First, regarding shareholder returns, as I explained earlier in the topics section, we have decided to take on the challenge of offering shareholder benefits for the first time as Atrae. By implementing this program, we aim to increase interest among a broader base of shareholders. The forecast for shareholder returns for the fiscal year ending September 2026 is shown in the rightmost column. We expect total dividends to amount to JPY736 million. We project a dividend payout ratio of 97.4%. In addition, we have resolved to repurchase and retire treasury shares at a cost of approximately JPY500 million. As a result, the total payout ratio is expected to be 163.6%. We plan to introduce the new shareholder benefit program alongside these measures.

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Regarding our initiatives for shareholder returns and shareholder benefits, our intention is to enhance shareholder value by providing solid returns to our shareholders through the introduction of a shareholder benefit program, in addition to our ongoing dividend increases and share repurchases and cancellations. As we currently view this period as an investment phase for building the future across our various businesses, we position these initiatives as measures to secure continued support from our shareholders during this time. As you can see, in addition to dividends and the repurchase and cancellation of treasury stock, we will introduce a new shareholder benefit program, which will begin at the end of October 2026. In the first year, there will be no requirement for continuous shareholding. Shareholder benefit points can be exchanged for e-money or merchandise through a dedicated website. These points will be allocated based on the number of shares held. This allows us to provide greater benefits to those who have supported us the most.

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As we have consistently explained, in order to ensure that the annual securities report is disclosed at least three weeks prior to the general meeting of shareholders, we have decided to postpone the record dates for voting rights and dividends by approximately one month to October 31, 2026. Accordingly, beginning with the next general meeting of shareholders, the annual general meeting will be held in January 2027. In addition, we intend to align the record date for shareholder benefits with this dividend record date, setting it as of October 31, 2026.

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Our policy regarding future engagement with the stock market. As we aim to ensure that both institutional investors and individual investors gain a solid understanding of our company, our business, and our organization, we intend to strengthen our communication with individual investors as well. To that end, we plan to hold investor briefings for individual investors on May 17, August 18, August 19, and August 29.

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Next, I would like to explain our businesses. First, regarding Atrae’s overall business overview, we aim to pursue challenges and business activities that enhance fulfillment in both life and work across society. First, I would like to introduce the values and philosophy that Atrae holds dear. We uphold the philosophy of continuing to be a company that we can be proud of in front of the people who matter most to us. In addition to this, we have the vision I explained earlier: to create a company that attracts people from all over the world. Based on these two principles, we create businesses and products that we believe have true social value. We will create businesses and products that we believe have true social value. As a result, we operate businesses that we refer to as “People Tech.” “People Tech” embodies our commitment to creating businesses that expand people’s potential through technology and to realizing a society where individuals find fulfillment in both work and life. With this concept at the core, we launch and operate our businesses. Specifically, we are currently pursuing two major challenges. The first is the challenge of realizing optimal matching between people and organizations. We aim to achieve this through our two services, Green and Qooa, each leveraging technology in its own way to create better matches. The second is the challenge of maximizing team performance. Through initiatives such as building organizations where people find fulfillment in their work and enhancing overall organizational capabilities, we are committed to taking on this challenge.

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I would now like to explain each business individually. First is Green. Green is a success-fee-based recruitment media with a strong focus on IT personnel. The first point is that it is the industry’s first success-fee-based recruitment platform. The second point is that its uniform fixed fee structure enables cost-effective hiring. The third point is that we have accumulated a large volume of proprietary, non-public data. We have made a few new updates here. This includes closed data from both companies and users—data that is unique to the Japanese market and cannot be accessed by generative AI. This accumulation of non-public information is precisely why Green continues to be chosen as a matching and career-change service. In this way, Green’s value lies in the fact that it possesses all of its own service data, which serves as a significant competitive advantage.

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The business model. Traditional recruiting firms operate an analog model in which intermediaries match job seekers with hiring companies and earn high success fees—often around 35% of the candidate’s annual salary. In contrast, Green is taking on the challenge of making this matching process between companies and individual job seekers more rational, efficient, and comfortable through technology. As an easy-to-understand example, we have shown a case in which Internet services such as Expedia have replaced the traditional functions of travel agencies. In the same way, we believe that areas where intermediary value is not particularly high will inevitably be replaced by technology. This trend is irreversible. Green is challenging itself to lead this transformation.

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Regarding our competitive advantage, Green has established a unique position in the market. First, we have accumulated a large volume of proprietary data, which we leverage to enhance the accuracy and quality of matching. This is one of our major strengths. Second is our price competitiveness. Compared to traditional recruitment agencies, Green can operate at a significantly lower cost because it does not require professional career advisors or physical counseling facilities. Third, we have a strong first-mover advantage. Having operated for nearly 20 years, we possess not only extensive data but also a large base of companies using our service and a substantial number of registered users. This scale itself has become a major strength.

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Initially, Green was mainly used by companies in the IT industry. However, in recent years, a wide range of companies—regardless of whether they are in IT—have begun using Green to acquire IT talent for initiatives such as DX, IT implementation, and more recently, AI adoption. We see a clear trend of increasing demand and a broadening range of industries using the service.

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As for the definition of our KPIs, they are shown here. We monitor these KPIs closely and review them in detail on a daily basis as we operate the business.

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Here is the trend of our KPIs. First, the number of active users. The figure for Q2 was 54,103, which means that the number has remained almost flat.

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Although we are actively investing in web advertising, the number of users has been somewhat sluggish because our marketing focuses strongly on quality and on precisely identifying our target talent. That said, because of this emphasis on quality, we are seeing a slight increase in the number of applications. The application rate has improved. It currently stands at 22.3%, which we consider a reasonably good level at this stage. We believe this is the result of our quality-focused marketing efforts.

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The application rate has increased. The document screening pass rate now stands at 22.4%. This represents an improvement of approximately two percentage points. This improvement reflects not only our ability to attract candidates with higher market value, but also the impact of various product enhancements using AI, including Green AI.

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On the other hand, this improvement in the screening pass rate only began to appear in the latter half of the fiscal period. As a result, the number of hires has not yet caught up and remains down 8.2% YoY. However, since both the application rate and the screening pass rate have improved over the past two quarters, we expect to see positive results from Q3 onward.

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As for the number of companies using our service, there has been no major change, and the number continues to increase steadily. We do not see any particular issues in this area.

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The number of job postings at the end of the quarter has also remained stable at around 30,000. We have conducted several rounds of screening to ensure that only job postings of sufficient value remain on the platform. Even after this screening, the number has stayed at around 30,000, and given our current user base, we believe this volume is sufficient to provide meaningful value.

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This is a summary of the overall KPI status. The number of active users, the number of applications, and the application rate all show some signs of improvement, but they are not yet at a satisfactory level, so we have marked them with a triangle (△). On the corporate side. The number of companies using the service and the number of job postings are both marked with a circle (○), as there are no particular issues in these areas. The number of hires, however, has not yet shown a recovery and remains weak, so we have given it a cross (×). We expect the number of hires to improve from Q3 onward, and we are actively working toward that.

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Green’s growth potential. The market size of recruitment agencies in Japan is estimated to be around JPY450 billion across all industries. When converted to the scope relevant to Green, this represents approximately JPY270 billion, indicating that Green’s current revenue still accounts for only a very small portion of the overall market. If Green can further strengthen its differentiation, we believe there remains substantial room for growth within this market. We intend to continue enhancing Green’s differentiation and competitiveness.

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Next is Qooa, our AI career agent. We describe Qooa as achieving matching beyond human capability through just 10 minutes of dialogue. Through interaction with the AI, candidates can be assessed with high accuracy and depth—what we refer to as assessment—and matched with a wide range of career opportunities. Rather than a traditional human-led recruitment model, Qooa represents a new model of AI driven recruitment.

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In this area, we are organizing memory, knowledge, and a vast amount of data using an RAG framework. We are also developing advanced conversational capabilities. These enable the AI to draw out a candidate’s strengths, characteristics, and values through only a small amount of dialogue. In terms of assessment capabilities, the AI is designed to evaluate a candidate’s abilities and attributes at a high level using unstructured data. Looking ahead, we aim to take on the challenge of how AI can replace the more than JPY400 billion recruitment market that has traditionally been handled by human agents.

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High added value, high profitability, and a strong customer base. This blue-chip client base is, needless to say, one that Green has cultivated over nearly 20 years. Many highly influential companies use Green, and by leveraging this customer base while providing high added value beyond human capability, we aim to continue generating solid earnings.

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Green×Qooa. Through these two services, we aim to create an optimal and ideal matching experience between individuals and companies and ultimately replace the more than JPY400 billion recruitment market in Japan.

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Next is Wevox. We highlight three key points as a product that supports organizational capability development: (1) visualizing engagement, (2) leveraging technology, and (3) supporting organizational transformation through the use of rare, proprietary data. Like Green, Wevox is described as a vertically integrated platform that utilizes unique, hard-to-obtain data to provide strong, hands-on support for practices that cannot be replaced by generative AI. I would like to add a bit more detail on this later.

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In this age of AI, the phrase “SaaS is dead” is often heard, but I would like to once again explain Wevox’s competitive advantage. First, one of the most important points for us is the accumulation of rare, proprietary data. Because Wevox collects real employee responses—particularly through monthly pulse surveys—this enables an accurate understanding of organizational conditions based on insights that generative AI alone cannot replicate. This is what makes our data both rare and uniquely valuable. By combining this proprietary dataset—one of the largest in Japan with over 450 million records—with generative AI, we aim to evolve Wevox into a truly one-of-a-kind service and product. Leveraging these unique data assets also allows us to support organizational transformation. When the service was first introduced, it primarily focused on “ask.” By expanding the scope to “analyze,” “discuss,” and “practice,” Wevox has evolved into a product that not only visualizes the current state of an organization but also provides end-to-end support for implementing concrete organizational reforms. In addition, by integrating various tools, Wevox promotes autonomous organizational improvement and even behavioral change at the individual level. The product is evolving in this direction.

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More specifically, Wevox has evolved into a product that provides end-to-end support across the entire process—from “ask,” to “analyze,” to “discuss,” and finally to “practice.” We believe this evolution into a fully integrated support model is one of Wevox’s greatest strengths today. Originally, Wevox focused on visualizing organizational conditions by measuring engagement. It has since evolved to enable analysis at the individual level. It will also allow for comparisons with other companies. The AI can interpret these insights and automatically compile reports. In addition, Wevox offers features that support team discussions, including dialogue-activation templates, with AI providing assistance throughout. A wide range of functions is available. Finally, under the “practice” stage, Wevox provides various learning and support functions—online learning, video content, seminars, and opportunities for interaction with others. Through all of these elements, Wevox delivers value as a comprehensive platform.

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I will explain a few of the new features. First is AI. This function instantly analyzes the organization’s status and any changes and automatically generates clear reports that summarize the situation. While the feature itself is not particularly complex, it allows AI to organize information that previously had to be interpreted manually, making it much easier to understand.

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In addition, Wevox includes a unique digital whiteboard feature. During meetings—especially online meetings using tools such as Zoom or Google Meet—this digital whiteboard helps activate discussions, much like a physical whiteboard does in brainstorming sessions. This is essentially a whiteboard function designed to further activate and enrich meeting discussions. Various formats and stamps are also available to facilitate smoother communication. This feature is already being used by many companies. We believe it represents an important capability that cannot be easily replaced by AI.

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Although Wevox is a SaaS tool, organizational change ultimately requires behavioral change among the people who use it. For this reason, Wevox also provides practical support. In particular, interaction with other companies has been highly valued by many users. It leads to solutions for organizational challenges and provides significant learning opportunities. We also provide an online academy, video learning programs, and workshop templates that help managers, leaders, HR professionals, and executives facing various challenges acquire the knowledge needed to strengthen their organizations. By focusing on people, Wevox supports meaningful individual growth that ultimately drives organizational change. Wevox places strong emphasis on enabling individual transformation that leads to organizational transformation.

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At this point, with the significant expansion of functionality and the evolution of Wevox into a service that firmly supports organizational transformation, we have introduced the Team Success Plan at JPY600 per month. We have revised our pricing to position this as the new standard plan.

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As with Green, adoption is accelerating across a wide range of industries. Wevox is now used by more than 4,300 companies and organizations.

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We see a growing number of cases in which listed companies utilize the Wevox engagement score in their human capital disclosures. Overall, we view these trends as a favorable tailwind.

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User response data. Naturally, as the number of companies and accounts using Wevox increases, user response data continues to accumulate. We believe this accumulation is the key factor in building Wevox’s competitive advantage and creating a strong barrier to entry against competing services.

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The number of companies using Wevox has grown to more than 4,300, and revenue has increased steadily in line with this growth. As mentioned in the previous quarter, one large company temporarily churned as part of its transition to a company-wide rollout but has since resumed use. As a result, revenue for the quarter came to JPY1,029 million. At the previous earnings briefing, we had projected revenue of JPY980 million. Due to some short-term spot revenue, results exceeded the plan, but overall, we consider the outcome to be broadly in line with expectations. The higher figure is attributable to the spot component, which is temporary. In terms of underlying performance, Wevox continues to show stable, steady growth. Churn remains low. Although the renewal of our pricing plans from March to April temporarily pushed monthly churn to 5%, this is within our expectations and does not present any significant concerns.

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We describe this as pursuing further acceleration of growth through the sales contribution of SMBC Wevox Inc., a joint venture with Sumitomo Mitsui Financial Group. With this joint venture, outbound sales through more than 100 SMBC sales offices across Tokyo, Nagoya, and Osaka have become increasingly effective.

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As a result, Wevox has been gaining traction among a wide range of companies. It is now spreading steadily across the country. We intend to continue strengthening this initiative as we move forward.

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Wevox’s potential for growth. Our target audience remains broad, and there is still significant room for expansion. In terms of price competitiveness, we believe that JPY600 per user per month remains a low price point. The potential market is estimated at JPY480 billion, and we see ample opportunity within this space. Wevox still has considerable growth potential, and we intend to continue accelerating our efforts.

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Lastly, this slide—also shown previously as reference material—outlines our growth strategy and capital policy for this fiscal year and beyond, as well as our full-year earnings forecast. We remain committed to achieving sales of JPY8.6 billion and operating profit of JPY1.1 billion.

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For this fiscal year, our approach to growth investment includes making strategic investments in advertising, human capital, and new development initiatives to drive top-line expansion.

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We have also included information on our investment in human capital and the trend in sales per employee.

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Finally, regarding our shareholding structure. This remains unchanged from the previous earnings briefing. This concludes today’s financial results presentation. Thank you very much.

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Question & Answer

Moderator [M]: We will now begin the question-and-answer session. If you have any questions, please post them in the Q&A section on the right side of your screen. We will answer your questions submitted in the Q&A section in the order they are received. Let us begin with the first question. Participant [Q]: How would you evaluate the 51.6% progress rate of operating profit in the disclosed earnings forecast? Arai [A]: Thank you. At first glance, the figure appears extremely positive. However, we believe it reflects the fact that the timing of Green’s advertising investments was slightly delayed, which resulted in those investments being made more efficiently than initially planned. In H2, we intend to invest appropriately in advertising for Green to drive top-line growth. Therefore, while the 51.6% figure is positive in itself, it also includes the impact of investments that should have been made earlier but were not executed as originally intended. Participant [Q]: Green’s Q2 sales were negative YoY. When do you expect them to turn positive? What specific strategies are you implementing to achieve this? Arai [A]: Thank you. Currently, Green’s performance remains roughly flat. However, we are advancing various feature developments—particularly those utilizing AI—aimed at both users and clients. These enhancements have gradually created value, leading to improvements such as higher application rates and higher document-screening pass rates. In addition, we plan to invest steadily in advertising. If these initiatives progress as expected, we anticipate that YoY comparisons will turn positive in Q3 and Q4. Participant [Q]: How do you assess the two-percentage-point improvement in the document-screening pass rate in Q2, given the continued challenges in this area? Arai [A]: Thank you. While this data does not yet reflect actual hiring decisions or confirmed placements, and therefore we are not in a position to be overly optimistic at this stage, we believe the improvement is the result of our investments in developing various new features and in marketing efforts aimed at securing target talent. These initiatives have contributed to the higher screening pass rate observed in Q2. We intend to continue tracking this through to confirmed offers and actual hires, and to drive Green’s growth accordingly. Participant [Q]: In addition to dividends and share buybacks and cancellations, what is the background behind introducing shareholder benefits as part of your shareholder-return policy? Arai [A]: Thank you. As mentioned earlier, our two services—Green and Qooa—are not yet in a position to generate returns that can be distributed to shareholders. Green requires time and continued trial-and-error as we execute its growth strategy and further develop the product. Similarly, Qooa is a new service, and we expect some degree of trial-and-error to continue even after its release. We ask our shareholders to stay with us and look forward to the potential of these services. With this in mind, and while shareholder benefits are not the only form of shareholder return, we decided to introduce a shareholder benefit program for the first time as a way to increase shareholder engagement and enhance the attractiveness of our stock.

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Participant [Q]: What is the risk of Green and Wevox being replaced by AI? What strategies are you implementing to address this? Arai [A]: Thank you. We do not believe that a world in which job changes are completed entirely by AI will arrive in the immediate future. Green will continue to leverage AI effectively, while Qooa is a service built with full commitment to AI. By combining these two services to achieve optimal matching between people and companies, we believe that Atrae as a whole can continue to create highly valuable services. As for Wevox, as mentioned earlier, the fundamental premise of the service is that all employees participate. We possess rare and unique data, and Wevox has evolved into a tool that teams use collectively to generate value. In addition to the tool itself, we also provide services that promote behavioral change—such as opportunities for people to gather and learn offline. We believe this aspect cannot be replaced by AI. Participant [Q]: How is the current level of hiring appetite among companies? Also, as AI adoption progresses, what is your outlook for corporate hiring appetite next fiscal year, the year after, and beyond? Arai [A]: Thank you. At this stage, it is still difficult to provide a clear outlook. Although we have not seen any indication at this stage that companies’ recruiting capability has significantly weakened, we believe that the evolution of AI is progressing at a pace beyond our initial expectations. As a result, we consider it highly likely that white-collar clerical and operational roles will eventually be replaced by AI. We expect that, particularly among more advanced companies, mismatches may emerge in these areas, or certain roles may no longer be required. However, even in such cases, individuals will continue to change jobs. Therefore, it is important for us to understand clearly how talent flows from one industry to another and to develop services that align with these shifts. Participant [Q]: How do you evaluate Wevox’s Q2 sales, which grew 43.3% YoY? Arai [A]: Thank you. We believe the results are very solid. However, as mentioned earlier, the figure includes spot revenue. For a SaaS business, the most important value lies in stable, recurring, and steadily increasing revenue. From that perspective, we do not view the fluctuations in Q1 and Q2 of FY2026 as particularly positive. That said, the underlying SaaS business continues to perform extremely well. Therefore, rather than focusing solely on the 43.3% growth rate, we view Wevox’s steady expansion—driven by the value it provides to a growing number of companies—as highly positive. Participant [Q]: Will Atrae be actively hiring in the future? Or will you pursue growth with minimal staffing by leveraging AI? Arai [A]: Thank you. Since its founding, Atrae has aimed to build a highly productive organization capable of developing a large business with a small team by maximizing the use of technology. In that sense, even in the age of AI, we do not expect that there will be members whose roles will be taken over by AI or whose work will no longer be necessary within the Company. Accordingly, we have no intention of reducing headcount. On the other hand, in terms of hiring, we intend to be even more rigorous in identifying candidates who can perform at a high level in a technology-driven company like Atrae, particularly in an era where AI plays a central role. By leveraging AI in our hiring process and strengthening our entry management, we believe we can build an even more competitive organization.

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In conclusion, we will continue to hire proactively, while maintaining a high bar for recruitment. Participant [Q]: Is Wevox’s rate revision and upselling progressing well? Arai [A]: Thank you. One of the reasons for the rate revision is the evolution of Wevox—from a simple survey tool into a platform that supports organizational transformation. In addition, for companies that had introduced Wevox but were not actively utilizing it, the new pricing structure encourages them to reassess their use. For customers who wish to fully leverage Wevox and generate value, the new plan provides access to all features. For customers who are committed to actively utilizing Wevox, the revision has been received very positively. On the other hand, for companies that had introduced Wevox but were not using it effectively, this timing allows them to review their usage, and in some cases, it may be appropriate for them to churn. From this perspective, we believe the transition is progressing smoothly. We view the temporary monthly churn of 5% during the March to April transition period as fully within our expectations and consider the overall progress positive. Participant [Q]: You have made a major update to Wevox, moving it to a full-fledged product that helps improve organizational performance. What are the differences compared to the previous version, and how have customers responded? Arai [A]: Thank you. In the past, even companies that wanted to make full use of Wevox often told us that they did not know how to use it effectively, or that while they could identify issues, they were unsure how to address them. Our customer success and support teams frequently receive inquiries of this nature. With the latest update, we now provide an integrated experience that includes learning resources and a full suite of features. As a result, we are seeing a growing number of teams that are able to learn and apply Wevox effectively, and we feel that this is steadily expanding. Overall, while the revision may result in higher fees for some customers, we are confident that the number of companies who recognize the value of Wevox—and feel that the value exceeds the price increase—will continue to grow. Participant [Q]: Is the development and release of Qooa progressing as expected? Arai [A]: Thank you. We believe it is progressing in line with expectations. We are currently conducting repeated user testing with the goal of releasing the service in Q4. Progress has been smooth, and the value of the service continues to increase, so we expect to be able to unveil it to the public in the near future. Participant [Q]: Wevox’s function development, AI investment, and human resource investment is ahead of the others. Which KPIs—such as ARPU, contract unit price, or churn rate—do you expect to improve, and at what timing will they contribute to operating profit? Arai [A]: Thank you. We believe that AI investments will generate significant value for Wevox, as well as for Qooa and Green. For Qooa, we are not expecting revenue within this fiscal year’s budget. For Green, AI investments in both Qooa and Green may enable us to incorporate Qooa’s features into Green in the future. We see Qooa as an important challenge that can contribute to Green’s long-term, steady growth. For Wevox, the recent evolution of the product and the development of additional AI-driven features will lead to a significant increase in contract unit price starting in April. Naturally, ARPU will also rise. We expect these improvements in ARPU and contract unit price to contribute meaningfully to Wevox’s growth going forward.

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Regarding churn, while the monthly churn rate temporarily reached 5% during March and April, we believe this is likely to be a one-time effect based on client feedback and the overall situation. We will continue to monitor the trend, but since many customers who intended to churn have already done so during this transition, we expect the churn rate to return to its historically low level. Participant [Q]: Green continues to see declining revenues. To what level do you expect it to recover with AIdriven improvements? Also, do you have criteria for reviewing resource allocation, downsizing, or withdrawing from the business if performance does not improve within a certain period? Arai [A]: Thank you. At this point, we are not considering downsizing or withdrawing from Green. Even now, the service is operated by a relatively small team. Despite this, Green is able to generate roughly the same level of quarterly gross profit as Wevox, and we believe it continues to provide sufficient value. We do not have a negative evaluation here, as many job seekers and hiring companies still find Green valuable and continue to use it, so we do not view the current situation negatively. On the other hand, regarding the question of whether we can achieve rapid growth, we do not currently have a clear indication that Green will experience a sharp upward trajectory. However, we believe there is ample potential for stable, steady growth. We see AI as the key to achieving this. By making solid investments in AI— particularly features designed for corporate users—we believe Green can return to a steady, upward growth trajectory. This is the direction we think Green should aim for. As a side note, Qooa will take on the challenge of AI development for individual users. If both services function effectively, we expect Green and Qooa together to achieve significant progress in this market. Participant [Q]: You explained that Wevox has a competitive advantage due to its proprietary data accumulation. Where do you think this advantage will remain as AI becomes more common in the future? Is it the volume of data, the customer base, or the operational know-how? Arai [A]: Thank you. We do not believe that the customer base or the volume of data alone will constitute a complete competitive advantage. No matter how much data exists, AI will inevitably be able to access it and derive insights from it. What we consider most important is that employees genuinely feel the value of this SaaS tool—using it to communicate, discuss issues, understand their organization, and learn together. This engagement within the tool is what truly matters. In addition, Wevox provides services that promote organizational transformation, reform, and even behavioral changes, including offline academies, learning opportunities, and in-person exchanges. We believe this aspect has very limited potential to be replaced by AI. For the parts that could be replaced by AI, we intend to proactively incorporate AI ourselves, evolving Wevox into a service that can coexist with AI. Therefore, we do not see this as a major concern. Moderator [M]: We have addressed all the questions received so far. If you have any additional questions, please submit them in the Q&A section on the right side of your screen. We have answered the questions received so far, and as there appear to be no further questions, we will conclude the question-and-answer session. This concludes the live webcast of Atrae, Inc.’s Q2 Financial Results Briefing for the Fiscal Year Ending September 2026. Thank you very much for your attention.

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