Worth reading
52Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
40
Year-on-year change in operating profit (%)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&ASecond quarter of the fiscal year ending August 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profitAmount not stated-40.0%
Gross Profit Margin42.7 %
Results for the three months of the current quarterRevenue from the DX support products and services business increased year on year in the second quarter. The overall gross profit margin was 42.7%. Standalone figures for revenue and profit at each stage for the quarter were Not disclosed
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales42.8
Operating profit28.5
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
As of the second quarter, results were tracking slightly below planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Reasons for the decline in revenue and profit: project recognition timing, project mix, withdrawal from low-profitability projects, and upfront investment
- Full-year forecast: forecast unchanged; six-month cumulative progress was 42.8% for revenue and 28.5% for operating profit
- Recovery measures for the second half: expanding the customer base, shifting the business portfolio toward higher value-added offerings, and using AI
- Personnel plan: 220 employees, down 4 from the first quarter; hiring results were 17 new graduates and 7 mid-career hires
- Growth strategy: Indian subsidiary, new company, EBAAD, and partnership with 国際航業
- Shareholder returns: no decisions have been made regarding share repurchases or dividends, with priority given to growth investment
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Delays in the start of projects
- Transition period for smart mobility-related projects
- Strategic withdrawal from low-profitability projects
- Increase in the mix of low-margin projects
- Upfront investment in hiring and training personnel, the sales platform, and research and development
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Investment costs are weighted toward the first half
- Revenue and profit recognition are weighted toward the second half
- Project progress in the second half is expected to be broadly in line with the initial assumptions for the fiscal year
New initiatives
- Establishment of the strategic consulting subsidiary 『社会価値変革研究所』
- Launch and rollout of the AI agent design service 『EBAAD』
- Establishment of a new account management organization
- Basic agreement toward a business partnership with 国際航業
- Strengthening of the global development structure, including the Indian subsidiary
- Preparations to hold an information session for individual investors during the current fiscal year
Key KPIsA metric the company considers important as a management benchmark.
- Enterprise customer count20 companiesYear on year against the same period last year+4 companies
- Number of consultant and engineer employees220 People
- New graduate hires (six-month cumulative)17 People
- Mid-career hires (six-month cumulative)7 People
- Employee turnover rate (fiscal year-end August 2025)8.2 %
Segment results
DX Promotion Support BusinessDelays in the timing of recognizing certain projects, the transition period for smart mobility-related projects, and withdrawal from low-profitability projects affected revenue. Figures were Not disclosed
Digital Services Co-creation BusinessDelays in the start of certain projects shifted revenue recognition toward the second half. Figures were Not disclosed
DX Support Products and Services BusinessRevenue increased year on year in the second quarter. The mix of low-margin products temporarily increased. Figures were Not disclosed
Financial targets
Equity ratio
Actual results74.5 %
Number of employees
Number of Employees220 People
Change during the periodDown 4 from the first quarter
採用実績Six-month cumulative: 17 new graduate hires and 7 mid-career hires
Acquisition of treasury shares
There are no matters decided at this time that require disclosure. Share repurchases will be considered going forward| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending August 2026 |
| Operating profit | 非開示 (YoY -40.0%) |
| Gross Profit Margin | 42.7 % |
| Results for the three months of the current quarter | Revenue from the DX support products and services business increased year on year in the second quarter. The overall gross profit margin was 42.7%. Standalone figures for revenue and profit at each stage for the quarter were Not disclosed |
| Progress against full-year forecast | Net Sales 42.8 / Operating profit 28.5 |
| Self-assessment against the plan | As of the second quarter, results were tracking slightly below plan |
| Segment results | DX Promotion Support Business Delays in the timing of recognizing certain projects, the transition period for smart mobility-related projects, and withdrawal from low-profitability projects affected revenue. Figures were Not disclosed / Digital Services Co-creation Business Delays in the start of certain projects shifted revenue recognition toward the second half. Figures were Not disclosed / DX Support Products and Services Business Revenue increased year on year in the second quarter. The mix of low-margin products temporarily increased. Figures were Not disclosed |
| Breakdown of Factors Affecting the Change | Delays in the start of projects, Transition period for smart mobility-related projects, Strategic withdrawal from low-profitability projects, Increase in the mix of low-margin projects, Upfront investment in hiring and training personnel, the sales platform, and research and development |
| Key KPIs | Indicator name Enterprise customer count / Value 20 companies / Year on year against the same period last year +4 companies, Indicator name Number of consultant and engineer employees / Value 220 People / Year on year against the same period last year Not disclosed, Indicator name New graduate hires (six-month cumulative) / Value 17 People / Year on year against the same period last year Not disclosed, Indicator name Mid-career hires (six-month cumulative) / Value 7 People / Year on year against the same period last year Not disclosed, Indicator name Employee turnover rate (fiscal year-end August 2025) / Value 8.2 % / Year on year against the same period last year Not disclosed |
| Number of employees | Number of Employees 220 People / Change during the period Down 4 from the first quarter / 採用実績 Six-month cumulative: 17 new graduate hires and 7 mid-career hires |
| Assumptions Underlying the Business Outlook | Investment costs are weighted toward the first half, Revenue and profit recognition are weighted toward the second half, Project progress in the second half is expected to be broadly in line with the initial assumptions for the fiscal year |
| Financial targets | Equity ratio Actual results 74.5 % / Target Not disclosed |
| Acquisition of treasury shares | There are no matters decided at this time that require disclosure. Share repurchases will be considered going forward |
| Key points of the Q&A | Reasons for the decline in revenue and profit: project recognition timing, project mix, withdrawal from low-profitability projects, and upfront investment, Full-year forecast: forecast unchanged; six-month cumulative progress was 42.8% for revenue and 28.5% for operating profit, Recovery measures for the second half: expanding the customer base, shifting the business portfolio toward higher value-added offerings, and using AI, Personnel plan: 220 employees, down 4 from the first quarter; hiring results were 17 new graduates and 7 mid-career hires, Growth strategy: Indian subsidiary, new company, EBAAD, and partnership with 国際航業, Shareholder returns: no decisions have been made regarding share repurchases or dividends, with priority given to growth investment |
| New initiatives | Establishment of the strategic consulting subsidiary 『社会価値変革研究所』, Launch and rollout of the AI agent design service 『EBAAD』, Establishment of a new account management organization, Basic agreement toward a business partnership with 国際航業, Strengthening of the global development structure, including the Indian subsidiary, Preparations to hold an information session for individual investors during the current fiscal year |
Items this document does not state (15)
Net SalesOrdinary incomeNet incomeOperating profit marginSelling, general and administrative expensesFull-year earnings forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioCapital expendituresOrders received and order backlogMarket Size / Share
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The start of some projects was delayed, shifting revenue recognition toward the second half; smart mobility-related projects were in a transition period before the start of the next projects; the company strategically withdrew from low-profitability projects; the mix of low-margin projects increased; and upfront investments in hiring and training personnel, the sales platform, and research and development were incurred concurrently.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.