Worth reading
61In focus
Scored from 4 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
-64.6
% (year-on-year change in operating income)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary materials to the earnings reportSecond quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,708 million+9.4%
Operating profit¥94 million-64.6%
Ordinary income¥80 million-71.7%
Net income¥16 million-91.4%
Gross Profit Margin35.7 %
Operating profit margin2 %
Selling, general and administrative expenses¥1,588 million
Full-year earnings forecast
Net Sales
¥10,304 million
Operating profit
¥610 million
Ordinary income
¥603 million
Net income for the current fiscal year
¥428 million
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 Sales45.7
Operating profit15.4
Ordinary income13.3
Net income for the current fiscal year3.9
Cost of sales47
Gross profit43.5
Selling, general and administrative expenses48.8
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue: increase in new contracts and higher sales from the facial recognition and generative AI businesses. Operating profit: research expenses to strengthen facial recognition products, recruitment and employee training costs, personnel expenses associated with strengthening overseas staffing, and the costs of opening an employment facility for people with disabilities. Amounts for each factor are not disclosed.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Continued growth in each business, led by the ServiceNow business; advances in facial recognition technology; use of generative AI; and securing and developing personnel through revisions to the personnel system and expanded employee benefits. Numerical assumptions are not disclosed.New initiatives
- Establishment of a facial recognition research and development center in Poland
- Develop a health-check application for the preventive care sector and begin sales through 株式会社ジェネラス
- Obtain Japan's first Validated Practice certification in the ServiceNow HR field
- Opened the Hiroshima Sales Office
- Open the Nagoya Sales Office
- Plan to introduce a shareholder benefits program during the current fiscal year
Key KPIsA metric the company considers important as a management benchmark.
- Cumulative number of ServiceNow customers65 companies
- ServiceNow customer satisfaction4.83 Out of 5
- Number of ServiceNow-certified personnel122 people
- Cumulative number of certified personnel783 people
- Runners using facial recognition at the Kumamoto Castle Marathon16,000 people
- Rococo Farm-related personnel23 people
Segment results
ITO＆BPO
Net Sales
¥3,207 million+12.3%
Operating profit
¥61 million-59.9%
Operating profit margin
1.9 %
yoy_change_pt-3.4
Cloud Solutions
Net Sales
¥1,462 million+5.9%
Operating profit
¥63 million-44.2%
Operating profit margin
4.4 %
yoy_change_pt-3.9
Overseas Business
Net Sales
¥37 million-43.1%
Operating profit
¥-30 million-3,000.0%
Operating profit margin
-82.3 %
yoy_change_pt-80.9
Financial targets
Actual equity ratio: 62.0%. Financial targets are not disclosed. ROE, ROA, PBR and PER are shown in the reference charts, but the figures are not disclosed.Number of stores and locations
The Hiroshima Sales Office began operations on 2 February 2026, and the Nagoya Sales Office began operations on 6 August 2026. The total number of locations at the end of the period and the number of openings and closures at all locations during the period are not disclosed.Number of employees
Consolidated1,007 people
Standalone928 people
Record date30 June 2026
Annual Dividend
¥40 per share
Interim20
End of period20
Payout ratio
40% for the fiscal year ended December 2024 and 41% for the fiscal year ended December 2025. The forecast payout ratio for the fiscal year ending December 2026 is not disclosed.| Item | Details |
|---|---|
| Document type | Supplementary materials to the earnings report |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Net Sales | ¥4,708 million (YoY +9.4%) |
| Operating profit | ¥94 million (YoY -64.6%) |
| Ordinary income | ¥80 million (YoY -71.7%) |
| Net income | ¥16 million (YoY -91.4%) |
| Gross Profit Margin | 35.7 % |
| Operating profit margin | 2 % |
| Selling, general and administrative expenses | ¥1,588 million |
| Full-year earnings forecast | Net Sales ¥10,304 million / Operating profit ¥610 million / Ordinary income ¥603 million / Net income for the current fiscal year ¥428 million |
| Progress against full-year forecast | Net Sales 45.7 / Operating profit 15.4 / Ordinary income 13.3 / Net income for the current fiscal year 3.9 / Cost of sales 47 / Gross profit 43.5 / Selling, general and administrative expenses 48.8 |
| Segment results | ITO＆BPO Net Sales ¥3,207 million (YoY +12.3%) / Operating profit ¥61 million (YoY -59.9%) / Operating profit margin 1.9 % / Cloud Solutions Net Sales ¥1,462 million (YoY +5.9%) / Operating profit ¥63 million (YoY -44.2%) / Operating profit margin 4.4 % / Overseas Business Net Sales ¥37 million (YoY -43.1%) / Operating profit ¥-30 million (YoY -3,000.0%) / Operating profit margin -82.3 % |
| Breakdown of Factors Affecting the Change | Revenue: increase in new contracts and higher sales from the facial recognition and generative AI businesses. Operating profit: research expenses to strengthen facial recognition products, recruitment and employee training costs, personnel expenses associated with strengthening overseas staffing, and the costs of opening an employment facility for people with disabilities. Amounts for each factor are not disclosed. |
| Key KPIs | Indicator name Cumulative number of ServiceNow customers / Value 65 companies / Year on year against the same period last year Not disclosed, Indicator name ServiceNow customer satisfaction / Value 4.83 Out of 5 / Year on year against the same period last year Not disclosed, Indicator name Number of ServiceNow-certified personnel / Value 122 people / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of certified personnel / Value 783 people / Year on year against the same period last year Not disclosed, Indicator name Runners using facial recognition at the Kumamoto Castle Marathon / Value 16,000 people / Year on year against the same period last year Not disclosed, Indicator name Rococo Farm-related personnel / Value 23 people / Year on year against the same period last year Not disclosed |
| Number of stores and locations | The Hiroshima Sales Office began operations on 2 February 2026, and the Nagoya Sales Office began operations on 6 August 2026. The total number of locations at the end of the period and the number of openings and closures at all locations during the period are not disclosed. |
| Number of employees | Consolidated 1,007 people / Standalone 928 people / Record date 30 June 2026 / Change during the period Not disclosed / Hiring plan Not disclosed |
| Assumptions Underlying the Business Outlook | Continued growth in each business, led by the ServiceNow business; advances in facial recognition technology; use of generative AI; and securing and developing personnel through revisions to the personnel system and expanded employee benefits. Numerical assumptions are not disclosed. |
| Financial targets | Actual equity ratio: 62.0%. Financial targets are not disclosed. ROE, ROA, PBR and PER are shown in the reference charts, but the figures are not disclosed. |
| Annual Dividend | ¥40 per share |
| Payout ratio | 40% for the fiscal year ended December 2024 and 41% for the fiscal year ended December 2025. The forecast payout ratio for the fiscal year ending December 2026 is not disclosed. |
| New initiatives | Establishment of a facial recognition research and development center in Poland, Develop a health-check application for the preventive care sector and begin sales through 株式会社ジェネラス, Obtain Japan's first Validated Practice certification in the ServiceNow HR field, Opened the Hiroshima Sales Office, Open the Nagoya Sales Office, Plan to introduce a shareholder benefits program during the current fiscal year |
Items this document does not state (10)
Results for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A
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.Revenue increased due to growth in new contracts and higher sales from the facial recognition and generative AI businesses. Operating profit declined due to higher research expenses to strengthen facial recognition products, recruitment and employee training costs, personnel expenses associated with strengthening overseas staffing, and the costs of opening an employment facility for people with disabilities.
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.