SHIFT, Inc. — MarketDX

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SHIFT shares rise over 30% in a month, but profit stalls despite revenue growth

Shares of software quality assurance firm SHIFT have climbed more than 30% over the past month, closing at 956 yen on August 14. Cumulative revenue for the first three quarters of the fiscal year ending August 2026 rose 21.4% year on year to 115.8 billion yen, but operating profit fell 4.3% to 11.3 billion yen and net profit dropped 36.6% to 3.9 billion yen. The company said profit was pressured by higher hiring costs as recruitment activity normalized and by a temporary decline in utilization rates after it added sales staff to pursue large deals. Gross profit rose 16.1%, but selling, general and administrative expenses grew faster at 27.6%, and an equity-method investment loss of 3.8 billion yen further widened the decline in net profit.

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SHIFT revises capital allocation policy, to begin dividends from fiscal year ending August 2026

SHIFT announced on the 15th that it has revised its capital allocation policy and will begin paying dividends from the fiscal year ending August 2026. The company had previously continued growth investments such as business expansion and M&A, but it has determined that it now has the financial capacity to balance shareholder returns while continuing to invest. Using profits earned through fiscal 2028 as a source, it will set the total payout ratio at 20%. Of that, 10% will be allocated to dividends, and the remaining 10% will be used for flexible measures such as dividends or share buybacks depending on the circumstances at the time. The dividend forecast for the fiscal year ending August 2026 is set at 4.10 yen.

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