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Business overview
The Group primarily operates in the IT services industry, with its business centered on IoT-related professional services, the Web platform business, including embedded software such as the NetFront Browser series, and the network business, including the integrated Network OS for white-box equipment, "OcNOS." During the interim consolidated accounting period from 1 February 2026 to 31 July 2026, demand for digital transformation, including AI, expanded against a backdrop of steady IT investment. With each of the IoT, Web platform and network businesses performing, the Group’s overall net sales amounted to ¥10,578,037 thousand, up 16.8% year on year, while it recorded an operating loss of ¥779,895 thousand, an ordinary loss of ¥534,599 thousand and an interim net loss attributable to owners of the parent of ¥588,415 thousand. The IoT business recorded lower net sales year on year, due to the impact of large-scale projects, and segment profit also declined. The Group plans to build a stronger business foundation by expanding its customer base, appropriately identifying engineering resources, and collecting accounts receivable. In the Web platform business, net sales and segment profit declined year on year, due in part to the impact of domestic licensing revenue. In the network business, net sales and segment profit increased year on year, due to the impact of large-scale projects received last year. Overall, net sales increased year on year, but operating and ordinary losses continued. To address ongoing funding needs, the Group plans to strengthen its financial foundation by considering the optimization of working capital, continued software research and development expenditures, and financing through capital markets, bank borrowings and the establishment of commitment lines, among other measures.
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