Trend Micro Keeps Two Calendars

Deferred revenue in current liabilities of ¥236,085m (US$1,441.3m) at 31 December 2025 sits against ¥275,984m (US$1,684.9m) of revenue recognised in the year — 312 days' worth, up from 296. A management figure the deck labels Pre-GAAP fell 1.0% while reported revenue rose 1.2%, and the regional rows show where the two series part.

On the consolidated balance sheet at 31 December 2025 there is a line called 繰延収益 — deferred revenue — of ¥236,085 million (US$1,441.3 million), against ¥221,386 million (US$1,351.6 million) a year earlier. The consolidated revenue recognised in the twelve months to that same date is ¥275,984 million (US$1,684.9 million). One of those numbers is a year that happened. The other is a balance the report places in current liabilities and describes as being recognised as revenue from the following consolidated year onward, in line with contract periods; the non-current side of the same balance sheet carries two lines, retirement benefit liabilities of ¥6,482 million (US$39.57 million) and other of ¥6,150 million (US$37.55 million), so the ¥236,085 million (US$1,441.3 million) is the whole of the account. They are close enough in size to be worth putting side by side.

This is what a contract with a service period does to an income statement. The consideration attaches to a period, the service is delivered across that period, and the revenue is recognised across it. The report's note on the basis of its key management indicators records that the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, 31 March 2020) was applied from the beginning of the 34th term and that the indicators from the 34th term onward are on that basis — a note about the comparability of the indicator table, not about this balance. For the balance the report says what it says above: current liabilities, recognised from the following consolidated year onward, in line with contract periods. The consequence is that the year in which an agreement is made and the year in which it becomes revenue are different years, and the difference is carried on the balance sheet.

The size of the difference, in days: 236,085 ÷ 275,984 = 0.8554, which multiplied by 365 is 312 days of revenue at the year's average rate of recognition. The same arithmetic on the prior year: 221,386 ÷ 272,638 = 0.8120, or 296 days. Sixteen days more of contracted, not-yet-recognised revenue stood on the balance sheet at the end of 2025 than at the end of 2024. Both denominators are the consolidated revenue reported for the year in question — ¥275,984 million (US$1,684.9 million) and ¥272,638 million (US$1,664.5 million) — each taken from that year's own annual securities report.

The two lines moved at different speeds. The balance rose by ¥14,699 million (US$89.74 million), which is 6.64% of the opening balance. Recognised revenue rose 1.23% (275,984 ÷ 272,638), a comparison drawn across two annual reports rather than within one; the 2025 report's own prior-year comparative is not among the lines read here. A balance measured at a year-end position is not directly comparable with a flow measured across twelve months, and whether currency movement contributed to either number is not stated in the lines read here. The direction of the divergence is the subject: the stock of what has been contracted grew faster than the flow of what has been earned.

The identity underneath is simple. Closing balance equals opening, plus what is added during the period, minus what is recognised out of it, plus whatever translation does to balances held in other currencies. Rearranged, revenue recognised plus the change in the balance gives what was added. The report supplies the terms. Its revenue-recognition note says the contract liability relates mainly to 前受収益 — amounts received in advance from customers on software-licence, support-service and hardware transactions — that it corresponds to performance obligations to be satisfied from the following consolidated year onward, and that it is carried on the consolidated balance sheet inside the current liability 繰延収益; the contract-liability balances the note gives, ¥221,386 million (US$1,351.6 million) at the start of the year and ¥236,085 million (US$1,441.3 million) at the end, are that line. The audit report's key audit matter puts the mechanism in one clause — 契約負債である繰延収益, the deferred revenue that is the contract liability — recognised because consideration for the whole contract period is as a rule received when the product licence is granted, drawn down as the performance obligation is satisfied, with the same amount taken to sales. On that basis the balance-sheet change gives 275,984 + 14,699 = ¥290,683 million (US$1,774.6 million), and the cash-flow statement's own 繰延収益の増減額 of +¥4,112 million (US$25.10 million) gives 275,984 + 4,112 = ¥280,096 million (US$1,710.0 million). The two answers differ by ¥10,587 million (US$64.63 million). Of the terms in the identity, the translation one is what the lines read here do not state separately, so the difference stays a residue.

There is a third measure, in a different document. The CFO presentation for the fourth quarter and full year carries a reference table it labels Pre-GAAP, described on the page as an internal management figure that may be changed or revised, and marked unaudited. Its 2025 quarterly figures are ¥60,499m, ¥65,101m, ¥68,287m and ¥105,118m (US$369.35m, US$397.44m, US$416.89m and US$641.75m), summing to ¥299,005 million (US$1,825.4 million). Consolidated revenue for the same year is ¥275,984 million (US$1,684.9 million); the same reference table's own quarterly sales totals sum to ¥275,982 million (US$1,684.9 million). The difference is ¥23,021 million (US$140.54 million) on the first basis and ¥23,023 million (US$140.56 million) on the second. The deck defines the term on the face of its Pre-GAAP charts. The heading reads Pre-GAAP（繰延収益考慮前売上金額）and the note beneath it 「Pre-GAAP とは繰延収益ほか、返品引当金を考慮する前の売上金額をあらわしております」 — the sales amount before deferred revenue and the returns allowance are taken into account. The annual securities report uses the same gloss, Ｐｒｅ－ＧＡＡＰ(繰延収益考慮前売上高). On that definition the difference is the deferral and the returns allowance together; how it divides between the two is not in the lines read here.

The shape matters more than the level. Quarter by quarter in 2025, Pre-GAAP divided by the same quarter's sales in that same unaudited reference table — ¥67,501m, ¥66,407m, ¥68,844m and ¥73,230m (US$412.09m, US$405.42m, US$420.29m and US$447.07m) — runs 0.896, 0.980, 0.992 and 1.436. The fourth quarter carries 35.2% of the annual Pre-GAAP figure (105,118 ÷ 299,005) against 26.5% of the table's own annual sales (73,230 ÷ 275,982). One series is back-loaded; the other is close to flat across the year. The deck says what moves the first: on its chart of Enterprise year-on-year growth excluding exchange effects it writes 「Pre-GAAPは大規模案件(通常、複数年契約)のクローズタイミングにより左右され、ブレが大きくなる傾向。一方で、Net Revenueは安定的な推移。」 — Pre-GAAP is swung by the closing timing of large, usually multi-year, deals and tends to move more, while net revenue runs steadily. How much of the fourth quarter's 1.436 sits in any one deal is not in the lines read here.

It is not a single year's pattern. The same ratio for 2024 runs 0.993, 1.010, 0.956 and 1.462, with the fourth quarter's ¥102,307 million (US$624.58 million) at 33.9% of that year's Pre-GAAP total of ¥302,167 million (US$1,844.7 million), against 25.7% for the fourth quarter's ¥69,979 million (US$427.22 million) within consolidated revenue of ¥272,638 million (US$1,664.5 million). The annual ratio of Pre-GAAP to consolidated revenue was 1.108 in 2024 and 1.083 in 2025. The gap between the two was ¥29,529 million (US$180.27 million) in 2024 and ¥23,021 million (US$140.54 million) in 2025 — and the two levels moved in opposite directions, the Pre-GAAP total falling 1.0% (299,005 ÷ 302,167) while consolidated revenue rose 1.2%.

The regional rows in the same table sum, for 2025, to Japan ¥89,093m (US$543.91m), Americas ¥57,482m (US$350.93m), Europe ¥70,766m (US$432.03m) and APAC, Middle East and Africa ¥81,659m (US$498.53m). Those four total ¥299,000 million (US$1,825.4 million) against the ¥299,005 million (US$1,825.4 million) in the table's own totals row — ¥5 million (US$30,500) of rounding across sixteen quarterly cells stated in millions of yen. Divided by each region's consolidated sales for the year, the ratios are Japan 1.014, Americas 1.042, Europe 1.152 and APAC 1.142.

Europe is where the two series sit furthest apart. Its fourth-quarter Pre-GAAP figure of ¥32,409 million (US$197.86 million) is 1.91 times its fourth-quarter sales of ¥16,998 million (US$103.77 million), and 45.8% of its own annual Pre-GAAP sum. Japan's fourth quarter is 1.106 times — ¥24,481 million (US$149.46 million) against ¥22,129 million (US$135.10 million) — and 27.5% of Japan's annual sum. Pre-GAAP is the sales amount before deferred revenue and the returns allowance, and the deck puts its swings on the closing timing of large, usually multi-year, deals. What the lines read here do not carry is a regional split of that effect, so how much of Europe's 1.91 sits in any one contract is not in them; the figure is marked internal and unaudited.

Within a region the two series move together in sign and apart in size. In the Americas the Pre-GAAP sum fell from ¥65,126 million (US$397.59 million) to ¥57,482 million (US$350.93 million), or 11.7%, while consolidated sales fell from ¥58,827 million (US$359.14 million) to ¥55,187 million (US$336.92 million), or 6.2%. In Europe both rose, and again by different amounts: Pre-GAAP by 1.2%, from ¥69,897 million (US$426.72 million) to ¥70,766 million (US$432.03 million), and consolidated sales by 4.9%, from ¥58,546 million (US$357.42 million) to ¥61,439 million (US$375.09 million). Both series are stated in yen, and the lines read here do not link any particular contract to any particular quarter of recognition. What they show is that one region has two growth rates, and the two need not be the same number.

A note on labels, because the two documents use different ones for the same money. The annual report's sales table calls the fourth region アジア・パシフィック and the deck calls it APAC, Middle East and Africa; both report ¥71,516 million (US$436.61 million) for 2025. The annual report gives year-on-year changes of 2.4%, −6.2%, 4.9% and 2.9%; the deck gives 2%, −6%, 5% and 3% for the same four figures. The four regional amounts — ¥87,840m, ¥55,187m, ¥61,439m and ¥71,516m (US$536.26m, US$336.92m, US$375.09m and US$436.61m) — sum to ¥275,982 million (US$1,684.9 million) against the ¥275,984 million (US$1,684.9 million) reported total, a residue of ¥2 million (US$12,200) from stating four numbers in millions of yen.

Currency did most of the fourth quarter's growth. Reported revenue rose from ¥69,979 million (US$427.22 million) to ¥73,230 million (US$447.07 million), an increase of ¥3,251 million (US$19.85 million), and the deck states an exchange impact of ¥2,426 million (US$14.81 million) for the quarter. The deck also gives fourth-quarter regional revenue twice, once as reported and once with the prior year's rates applied. Subtracting the second from the first: Japan, nothing — both bases give ¥22,129 million (US$135.10 million); Americas ¥402 million (US$2.45 million); Europe ¥1,606 million (US$9.80 million), being ¥16,998 million (US$103.77 million) against ¥15,392 million (US$93.97 million); and APAC, Middle East and Africa ¥418 million (US$2.55 million). Those four differences sum to ¥2,426 million (US$14.81 million), the exchange impact the deck states. In its own margin the deck prints the differences as (0), (- 401), (- 1,606) and (- 418), where the two bases as stated give 402 for the Americas; those four printed figures sum to ¥2,425 million (US$14.80 million). On those figures, exchange accounts for 2,426 ÷ 3,251 = 74.6% of the quarter's increase, and Europe for 1,606 ÷ 2,426 = 66.2% of the exchange impact. A separate slide, 売上増減分解（対前年同期）, bridges the two quarters bar by bar: from ¥69,979 million (US$427.22 million), APAC, Middle East and Africa up ¥1,034 million (US$6.31 million), Japan up ¥403 million (US$2.46 million) and Europe up ¥356 million (US$2.17 million), the Americas down ¥969 million (US$5.92 million), then the ¥2,426 million (US$14.81 million) of exchange impact, arriving at ¥73,229 million (US$447.06 million) against the ¥73,230 million (US$447.07 million) reported — a residue of ¥1 million (US$6,100) from stating the parts in millions of yen. Those four regional bars are the same movements with exchange taken out: each matches the difference between the prior-year-rate figure above and the same quarter of 2024 to within ¥1 million.

The remuneration section carries a company performance bonus indicator stated in millions of US dollars: annual recurring revenue from subscription products and perpetual-licence renewals, US$1,628 million for the prior first half against US$1,644 million in the year under review, and US$1,672 million against US$1,676 million for the second half. The note records that the prior-year figures are restated at the current year's rates, so the indicator is denominated in dollars without being free of translation. That is +0.98% and +0.24%. The stated target was year-on-year growth of 6% or more, and the report records both halves as 未達成 — not achieved. Separately, the deck's Enterprise ARR figures are stated at an internal fixed rate of ¥153.77 = US$1 used in the company's FY2025 budgeting, described as non-GAAP and for internal management purposes.

The same remuneration table carries a second indicator it calls Pre-GAAP margin, stated in millions of yen: first half ¥28,577 million (US$174.46 million) prior year against ¥21,893 million (US$133.66 million), second half ¥61,928 million (US$378.07 million) against ¥61,773 million (US$377.12 million), both recorded as not achieved against a target of a ¥500 million (US$3.05 million) year-on-year increase. This is a different quantity from the deck's Pre-GAAP line, whose first quarter alone is ¥60,499 million (US$369.35 million). One is a revenue series and the other an operating-income series: both the deck and the report put Pre-GAAP-based operating income — Ｐｒｅ－ＧＡＡＰ(繰延収益考慮前売上高)ベースの営業利益 — at ¥80,799 million (US$493.28 million) for the year, and the report defines the indicator that takes over from 2026, Post-GAAP margin, as operating income on that basis with certain costs added back, among them amortisation of intangibles arising on acquisitions. The two halves' ¥21,893 million (US$133.66 million) and ¥61,773 million (US$377.12 million) sum to ¥83,666 million (US$510.78 million) against that ¥80,799 million; what sits between the two figures is not in the lines read here. They should not be added, netted, or read as one series.

The report puts the ¥236,085 million (US$1,441.3 million) of deferred revenue in current liabilities in its section on liquidity and sources of funds, beside cash and deposits and securities of ¥231,030 million (US$1,410.4 million) and its own statement that the balance of cash and cash equivalents, together with the cash operations generate, is sufficient for the working capital and capital expenditure of the next twelve months. The balance is an obligation to deliver service across contract periods rather than to pay cash. The cash-flow statement puts cash and cash equivalents at the end of 2025 at ¥230,458 million (US$1,406.9 million), up from ¥187,392 million (US$1,144.0 million) a year earlier. The discussion of financial position in the same report uses a different label — 現金及び預金, cash and deposits — and gives ¥220,092 million (US$1,343.7 million). The two labels are not the same measure, and the report's cash-flow note bridges them: cash and deposits of ¥220,092 million (US$1,343.7 million), less ¥223 million (US$1.36 million) of time deposits with terms over three months, plus ¥10,589 million (US$64.65 million) of short-term investments held inside the securities account, is ¥230,458 million (US$1,406.9 million). The ¥10,366 million (US$63.28 million) between the two labels is those two items.

Operating cash flow was ¥64,637 million (US$394.61 million), against ¥46,781 million (US$285.60 million) the prior year. The itemised lines available here are pre-tax income of ¥52,331 million (US$319.48 million), depreciation and amortisation of ¥26,390 million (US$161.11 million), the change in trade receivables and contract assets of −¥42 million (−US$0.26 million), the 繰延収益 movement of +¥4,112 million (US$25.10 million), and income taxes paid of −¥18,922 million (−US$115.52 million). Those five sum to ¥63,869 million (US$389.92 million), ¥768 million (US$4.69 million) below the reported total; the rest sits in items outside the lines read here. The 繰延収益 movement is 6.4% of operating cash flow.

Financing reconciles exactly. Treasury share purchases of −¥10,000 million (−US$61.05 million), treasury share disposals of +¥3,920 million (US$23.93 million), dividends paid of −¥23,489 million (−US$143.40 million), payments from non-controlling interests of +¥2,278 million (US$13.91 million) and refunds to them of −¥176 million (−US$1.07 million) sum precisely to the reported −¥27,467 million (−US$167.69 million). The dividend figure has a companion elsewhere: the statement of changes in equity records ¥24,158 million (US$147.48 million) at ¥184.00 per share (US$1.12), resolved 27 March 2025 on a 31 December 2024 record date, against ¥23,489 million (US$143.40 million) of cash paid — a ¥669 million (US$4.08 million) difference the lines read here do not decompose. The dividend for 2025, resolved 26 March 2026, is ¥24,175 million (US$147.59 million) at ¥185.00 per share (US$1.13), stated as 70.0% of net income attributable to owners of ¥34,523 million (US$210.76 million). Per share the payout rose 0.54%; in total, 0.07%. Under a board resolution of 12 November 2025, 1,322,500 shares were acquired for ¥9,999 million (US$61.04 million) between 13 November and 23 December 2025.

For 2026 the company forecasts revenue of ¥301,500 million (US$1,840.7 million), up 9%, and operating income of ¥56,400 million (US$344.32 million), down 2% from ¥57,777 million (US$352.73 million), on assumed rates of ¥156 = US$1 against ¥150 the prior year and ¥183 = €1 against ¥169, with revenue growth of 6% excluding the exchange effect; the deck describes a phase of cost-leading investment centred on R&D and sales and marketing hiring. Research and development expense for 2025 was ¥6,651 million (US$40.60 million) against ¥5,842 million (US$35.67 million), up 13.8%; the report records that this total sits inside general and administrative expenses, and the deck's hiring plan names research and development and sales and marketing together, so the expense line and the plan are not the same perimeter. Purchases of intangible fixed assets in investing activities were ¥21,699 million (US$132.47 million) against ¥23,720 million (US$144.81 million) — a different statement and a different measure, taken from the cash-flow statement rather than the income statement.

So the balance sheet ends the year holding ¥236,085 million (US$1,441.3 million) on the line labelled 繰延収益: 1.80 times net assets of ¥131,126 million (US$800.53 million) and 81.1% of total liabilities of ¥291,111 million (US$1,777.2 million), on total assets of ¥422,238 million (US$2,577.8 million). Definitions repay attention even here — the prior year's stated equity ratio of 29.2% is not net assets over total assets, which is ¥119,446 million (US$729.22 million) ÷ ¥400,316 million (US$2,443.9 million) = 29.8%. The equity ratio takes shareholders' equity, not net assets, as its numerator, and the balance sheet gives the parts: 株主資本合計 of ¥71,543 million (US$436.77 million) plus accumulated other comprehensive income of ¥45,422 million (US$277.30 million) is ¥116,965 million (US$714.07 million), which over ¥400,316 million (US$2,443.9 million) is the 29.2% stated. Between that and 29.8% sit the ¥2,480 million (US$15.14 million) of share acquisition rights, inside net assets and outside shareholders' equity. By our own count from the EDINET XBRL ownership tags, 46.17% of voting units were held by foreign corporations and foreign individuals at 31 December 2025 (596,430 + 53,768 out of 1,408,396), against a 7.31% median across the 3,167 companies we measure. The 2026 accounts will say how much of the balance was recognised.

Every figure above is read from documents written in Japanese. In English, the company's investor relations page lists, under 2025 Fourth Quarter and Annual, three kinds of material. Earnings: one item, 2025 Q4 Financial Report Data, a PDF of 745KB. Presentation: three PDFs, under the names Mahendra Negi CFO, Representative Director (5.13MB), Eva Chen, Chief Executive Officer & Co-founder (1.27MB) and Kevin Simzer, Chief Operating Officer (6.03MB). Earnings Conference Audio and Video: five files — Negi (MP3, 5.74MB), Chen (MP4, 78.7MB), Simzer (MP4, 76.1MB), Akihiko Omikawa, Director (MP3, 6.46MB) and a Q&A (MP3, 25.5MB), 192.5MB of it, of which 25.5MB is questions and answers. What the page establishes is the listing: titles, formats and file sizes. What is inside those PDFs, and what is said across the audio and the video, is not established by the listing read here. The page also carries an IR contact in English, Tel +81-3-4588-8572 and [email protected].

What the quarterly listing settles ends there, and the page carries more than that listing. Its navigation also offers Financial Releases, Stock and bond information, Business Report, Annual GAAP, Quarterly GAAP, Corporate Governance, Financial Analyst Coverage, IR Fact Sheet, Risk Factors, SEC Fillings — a link out to an EDGAR company search — and financial data archives back to 2000. Business Report resolves to an English annual report for fiscal year 2025, and that document carries the deferred revenue line at ¥236,085 million (US$1,441.3 million), the split of it into ¥136,454 million (US$833.05 million) within one year and ¥99,631 million (US$608.25 million) beyond, and both remuneration indicators — Pre-GAAP margin and annual recurring revenue — at the same figures used above. Annual GAAP resolves to a table of the same consolidated totals in English, with a US dollar column of its own. The annual securities report — the document nearly every figure above comes from — is not itself among them, and an English translation of it is not among what the disclosure rules require of a Japanese filer; whether one is published elsewhere is outside what we read. The deck quoted throughout this piece is the Japanese CFO presentation for the fourth quarter and full year; the English page lists a Presentation for the same quarter under the CFO's name; whether the two carry the same tables is not something a list of file names and sizes can show. A holder outside Japan has, from this page, a 745KB PDF, three presentation files, five recordings, a telephone number, and everything the navigation points to. What is said across the recordings, we have not verified.

A note on currency. Every yen amount above is converted at ¥163.8 = US$1, the rate retrieved on 24 July 2026, applied uniformly to all periods including 2024 and 2023 figures; no period-end or average rate from the filings is used for conversion, and the dollar figures are therefore not the dollar amounts the company would report. Significant figures follow the yen originals. Percentages, ratios, multiples, day counts, per-share counts and share counts are left unconverted, and the two indicators the company itself states in US dollars are reproduced as stated rather than re-converted. The company's own disclosures use their own rates for their own purposes — ¥149.83 = US$1 in the English Annual GAAP table on its investor relations site, which puts FY2025 net sales at US$1,842.0 million where this piece's rate gives US$1,684.9 million; an internal fixed ¥153.77 = US$1 for the ARR indicator; and assumptions of ¥156 = US$1 and ¥183 = €1 for the 2026 forecast — and none of those is this piece's rate.