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; whether any further amount sits in non-current liabilities is not in the lines read here. 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 — but only if every yen of revenue passed through the balance, and the lines read here do not establish that: the excerpt names the account 繰延収益 and neither equates it with 契約負債 or 前受収益 nor states its scope. Taking the sum for what it is, 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). The lines read here do not separate that residue into its components, so it 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. What Pre-GAAP includes is not defined in the lines read here, so the difference is stated and not attributed.

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. What produces the difference between them is not defined in the lines read here, so the shape is an observation and not an explanation.

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. Why the two series differ, and why the difference is uneven across regions, is not stated in the lines read here; Pre-GAAP is described only as an internal management figure, 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 sum to ¥2,426 million, the stated exchange impact exactly. 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. The same note also lists regional increase amounts of Japan ¥1,034m, Americas ¥403m, Europe ¥356m and APAC, Middle East and Africa ¥969m (US$6.31m, US$2.46m, US$2.17m and US$5.92m), summing to ¥2,762 million (US$16.86 million); that is a different quantity from the two-basis differences above, and the basis on which it is stated is not given in the lines read here.

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). They share a prefix and sit at incompatible scales, and nothing in the lines read here maps one onto the other. They should not be added, netted, or read as one series.

Against ¥236,085 million (US$1,441.3 million) of deferred revenue in current liabilities, 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 second is 97.6% of the first. 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 two numbers differ by ¥10,366 million (US$63.28 million); the lines read here identify the labels but not the composition of the difference.

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%. 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 from the expense line, and 3.26 times its size.

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 lines read here give neither that numerator nor its composition. 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, Tel +81-3-4588-8572 and [email protected], without stating the language in which enquiries are answered.

What the listing settles ends there. The annual securities report — the document nearly every figure above comes from — does not appear in that listing, 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 same applies to the difference between the English set and the Japanese one, to the exact addresses of the FY2025 files, and to any SEC filing or depositary receipt: from the page as read, none of those can be affirmed or denied. Whether the 繰延収益 line, the Pre-GAAP reference table or the ARR indicator appear in the English materials is likewise not established. 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 a 745KB PDF, three presentation files, five recordings and a telephone number. What can be read from them, we have not verified.

A note on currency. Every yen amount above is converted at ¥163.8 = US$1, the rate 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 — 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 those are not this piece's rate.