Decline in profits due to increased upfront investment across the board and slower sales growth
First written in FY2018-Q2. 16 of 31 entries say "Mitigated", first in FY2019-Q1. Latest entry: 2026-10-15.
MetaReal moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2026: 19 of 79 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- 2026-10-15WorsenedEarnings
「Revenue and operating profit in the AI business declined year on year」
AI事業は売上高が18.6％減少し、前年同期のセグメント利益から44,988千円の損失へ転じた。 - FY2027-H1WorsenedAnnual report
「In the AI business, orders received totaled ¥1,163.275 million, down 23.1% year on year. Revenue was ¥1,142.360 million, down 18.6%, due to the decline in orders received from the previous period. Despite expense reductions resulting from structural reforms initiated in the previous period, the segment recorded a loss of ¥44.988 million, compared with segment income of ¥53.473 million in the same period of the previous year, partly due to one-off increases in expenses related to generative AI.」
In the AI business, expenses were reduced through structural reforms, but orders received and revenue declined, and one-off expenses related to generative AI resulted in a shift from segment income in the same period of the previous year to a segment loss. - FY2026WorsenedAnnual report
「In the AI business, orders received were ¥2,648.363 million, down 12.6% from the previous consolidated fiscal year. Revenue was ¥2,822.603 million, down 8.6%, due to the decline in orders received from the previous fiscal year. Segment profit was ¥273.061 million, down 44.7%, due to advertising and promotional activities to win new projects and improve brand recognition, investment in rebuilding the management structure and other factors.」
In the AI business, orders received, net sales, and segment profit all decreased, with the pressure on profit from advertising and promotional activities, investment to restructure the management structure, and other factors reflected in the full-year figures. - 2026-04-14MitigatedEarnings
「As a result, consolidated revenue for the current fiscal year was ¥4,487.157 million, up 9.9% from the previous consolidated fiscal year; operating profit was ¥214.000 million, up 82.4%; ordinary profit was ¥182.639 million, up 61.9%; and net income attributable to owners of the parent was ¥48.201 million, down 83.9%.」
Although net income declined, consolidated operating profit and ordinary profit increased, easing the decline in overall consolidated earnings caused by upfront investment and other factors. - FY2026-H1WorsenedAnnual report
「Although net sales and operating profit in the AI business decreased year on year, operating profit in the HT business increased and the loss incurred by the metaverse business narrowed. As a result, the Group's net sales for the interim consolidated accounting period were ¥2,204,048 thousand, up 3.7% year on year, while the operating loss was ¥26,833 thousand, compared with operating profit of ¥291,507 thousand in the same period of the previous year.」
Despite higher consolidated net sales, the Group shifted from operating profit in the same period of the previous year to an operating loss, mainly due to lower net sales and profit in the AI business. - FY2025WorsenedAnnual report
「In the AI business, orders received were ¥3,031,201 thousand, down 5.1% from the previous consolidated fiscal year. Net sales increased 1.0% to ¥3,086,624 thousand, reflecting the impact of commissioned projects and other factors, while segment profit decreased 47.2% to ¥493,905 thousand due to upfront investment in the new business, Metareal AI.」
In the AI business, net sales increased due to upfront investment in Metareal AI, while orders received decreased 5.1% and segment profit decreased 47.2%, quantifying the impact of investment on profit for the full fiscal year. - FY2025-H1WorsenedAnnual report
「In the AI business, orders received were ¥1,624,839 thousand, down 3.1% year on year. Net sales increased 6.9% year on year to ¥1,661,660 thousand, reflecting the impact of commissioned projects and other factors, while segment profit decreased 7.4% year on year to ¥451,391 thousand due to upfront investment in the new business, Metareal AI.」
In the AI business, net sales increased, but segment profit decreased 7.4% year on year due to upfront investment in Metareal AI, with the resulting pressure on profit again reflected in the figures. - FY2024MitigatedAnnual report
「For the fiscal year under review, net sales were ¥4,177,759 thousand, down 2.7% from the previous consolidated fiscal year, and operating profit was ¥746,324 thousand, up 44.8% from the previous consolidated fiscal year. Excluding the metaverse business, operating profit was ¥975,508 thousand, up 4.1%.」
While the metaverse business continues to carry investment costs, consolidated operating profit increased 44.8%, and operating profit excluding the metaverse business also increased 4.1%, easing the decline in consolidated earnings associated with upfront investment. - FY2024-Q2MitigatedAnnual report
「Revenue fell 2.3% year on year to ¥2,112.250 million, while operating profit increased 61.5% to ¥390.578 million, ordinary profit increased 55.3% to ¥419.871 million, and quarterly net profit attributable to owners of the parent increased 111.9% to ¥232.859 million.」
While upfront investment in Metareal AI and other initiatives continues, consolidated operating profit, ordinary profit, and profit attributable to owners of the parent exceeded the same period of the previous year, easing the impact of upfront investment on consolidated earnings. - FY2024-Q1WorsenedAnnual report
「In the MT business, order activity remained solid at ¥902.413 million, up 4.9% year on year, but revenue fell 3.6% to ¥711.461 million due to the impact of lower orders in the previous fiscal year. Segment profit fell 12.8% to ¥134.042 million due to the impact of upfront investment in the new Metareal AI business.」
Although order activity increased in the MT business, revenue and segment profit declined due to lower orders in the previous fiscal year and upfront investment in Metareal AI. The consolidated group posted higher profit, but the earnings pressure from upfront investment at the business-unit level has become evident. - FY2023-Q3MitigatedAnnual report
「During the cumulative third-quarter period, group revenue increased 5.9% year on year to ¥3,254.879 million, operating profit increased 154.0% to ¥369.452 million, ordinary profit increased 137.0% to ¥397.836 million, and quarterly net profit attributable to owners of the parent was ¥155.980 million, compared with a quarterly net loss attributable to owners of the parent of ¥80.314 million in the prior-year period.」
While expenses from upfront investment in the metaverse business continued, the consolidated group posted higher revenue and higher profit, moving from a quarterly net loss attributable to owners of the parent in the prior-year period to a profit. The negative impact of upfront investment on overall earnings eased from the same quarter of the previous fiscal year. - FY2023-Q2MitigatedAnnual report
「The MT business continued to perform well, but the metaverse business incurred expenses from upfront investment in research and development and other areas. As a result, during the cumulative second-quarter period, group revenue increased 5.4% year on year to ¥2,161.415 million, operating profit increased 177.2% to ¥241.803 million, ordinary profit increased 150.1% to ¥270.386 million, and quarterly net profit attributable to owners of the parent increased 100.2% to ¥109.871 million.」
While expenses from upfront investment in the metaverse business continued, the consolidated group posted higher revenue and higher profit, with operating profit, ordinary profit, and quarterly net profit attributable to owners of the parent all exceeding the prior-year period. The negative impact of upfront investment on overall earnings has eased. - FY2023-Q1MitigatedAnnual report
「As a result, during the cumulative first-quarter period, group revenue increased 2.4% year on year to ¥1,058.240 million, operating profit increased 169.3% to ¥104.933 million, ordinary profit increased 144.3% to ¥116.154 million, and quarterly net profit attributable to owners of the parent increased 75.8% to ¥55.879 million.」
While upfront investment in the metaverse business continued, the consolidated group posted higher revenue and higher profit, further easing the decline in overall earnings associated with the investment. - FY2022-Q3MitigatedAnnual report
「The MT business continued to perform well, but the metaverse business incurred expenses from upfront investment in research and development and other areas. As a result, during the cumulative third-quarter period, group revenue increased 4.3% year on year to ¥3,074.084 million, operating profit increased 147.1% to ¥145.475 million, ordinary profit increased 511.6% to ¥167.893 million, and quarterly net loss attributable to owners of the parent was ¥80.314 million, compared with a quarterly net loss attributable to owners of the parent of ¥58.680 million in the prior-year period.」
While expenses from upfront investment in the metaverse business continued, consolidated revenue, operating profit, and ordinary profit all exceeded the prior-year period. The quarterly net loss attributable to owners of the parent resulted from expenses related to the correction of prior-year financial results and other factors. - FY2022-Q2MitigatedAnnual report
「The MT business continued to perform well, but the GU business incurred expenses from upfront investment in research and development and other areas. As a result, during the cumulative second-quarter period, group revenue increased 5.3% year on year to ¥2,049.746 million and operating profit increased 12.2% to ¥87.236 million.」
While expenses from upfront investment in the GU business continued, the consolidated group posted higher revenue and higher profit, and the negative impact of upfront investment on overall earnings eased from the previous quarter. - FY2022-Q1WorsenedAnnual report
「The MT business continued to perform well, but the GU business incurred expenses from upfront investment in research and development and other areas. As a result, during the cumulative first-quarter period, group revenue fell 1.8% year on year to ¥1,048.738 million, operating profit fell 65.4% to ¥62.860 million, ordinary profit fell 60.7% to ¥71.439 million, and quarterly net profit attributable to owners of the parent fell 59.5% to ¥49.437 million.」
Expenses from upfront investment in research and development and other areas in the GU business continued, causing consolidated operating profit to fall 65.4% year on year. Excluding the MT business, which maintained higher revenue and higher profit, operating profit outside the GU business also increased 15.0% year on year. - FY2021WorsenedAnnual report
「Revenue increased 4.2% year on year to ¥4,075.885 million, while operating profit fell 33.1% to ¥300.419 million. Excluding the GU business, operating profit was ¥469.017 million, up 4.5% year on year.」
Consolidated operating profit, including the GU business, fell 33.1%, whereas operating profit in the existing businesses excluding GU increased 4.5%. The source of the pressure on consolidated profit from upfront investment has been clarified as the cost burden of the new GU business. - FY2021-Q3WorsenedAnnual report
「As a result, during the cumulative third-quarter period, group revenue increased 2.9% year on year to ¥3,019.351 million, while operating profit fell 27.3% to ¥294.858 million, ordinary profit fell 34.7% to ¥263.443 million, and quarterly net profit attributable to owners of the parent fell 31.5% to ¥161.893 million.」
Although revenue continued to increase, operating profit, ordinary profit, and quarterly net profit attributable to owners of the parent all fell below the prior-year period. This disclosure does not identify upfront investment as a factor behind the decline. - FY2021-Q1MitigatedAnnual report
「As a result, during the cumulative first-quarter period, group revenue increased 9.4% year on year to ¥1,067.438 million, operating profit increased 6.5% to ¥181.637 million, ordinary profit increased 6.7% to ¥181.879 million, and quarterly net profit attributable to owners of the parent increased 10.2% to ¥121.949 million.」
The company continued to post higher revenue and higher profit in the current quarter after the previous period's lower profit and losses caused by upfront investment and higher expenses. The disclosure does not state that upfront investment itself was reduced, but the decline in earnings has eased. - FY2020MitigatedAnnual report
「For the consolidated fiscal year, revenue increased 34.5% year on year to ¥3,910.479 million and operating profit increased 32.8% to ¥448.860 million.」
The company moved from an operating loss caused by upfront investment in the previous fiscal year to higher revenue and higher profit in the current fiscal year. Upfront investment and higher selling, general and administrative expenses continued, but the decline in consolidated earnings eased. - FY2020-Q3MitigatedAnnual report
「As a result, during the cumulative third-quarter period, group revenue increased 42.5% year on year to ¥2,933.317 million, operating profit increased 125.9% to ¥405.690 million, ordinary profit increased 124.8% to ¥403.504 million, and quarterly net profit attributable to owners of the parent increased 83.3% to ¥236.463 million.」
From the prior period's lower profit and losses due to upfront investment and higher expenses, the cumulative third quarter brought higher revenue and higher profit, including 42.5% revenue growth and 125.9% operating profit growth, further easing the decline in earnings. - FY2020-Q2MitigatedAnnual report
「As a result, during the cumulative second-quarter period, group revenue increased 49.8% year on year to ¥1,935.744 million, operating profit increased 274.9% to ¥309.778 million, ordinary profit increased 269.8% to ¥310.918 million, and quarterly net profit attributable to owners of the parent increased 176.1% to ¥168.710 million.」
From the prior period's lower profit and losses due to upfront investment and higher expenses, the cumulative second quarter brought higher revenue and higher profit. The disclosure does not state that upfront investment itself was reduced, but the decline in earnings has eased further. - FY2020-Q1MitigatedAnnual report
「As a result, during the cumulative first-quarter period, group revenue increased 49.8% year on year to ¥975.364 million, operating profit increased 279.2% to ¥170.525 million, ordinary profit increased 268.6% to ¥170.443 million, and quarterly net profit attributable to owners of the parent increased 208.4% to ¥110.673 million.」
From the prior period's losses and lower profit due to upfront investment and higher expenses, the current quarter brought higher revenue and higher profit, further easing the impact of the risk of lower profit. - FY2019-Q3MitigatedAnnual report
「As a result, during the cumulative third-quarter period, group revenue increased 38.5% year on year to ¥2,058.739 million, operating profit rose to ¥179.585 million from ¥9.168 million in the prior-year period, ordinary profit rose to ¥179.477 million from ¥8.832 million, and quarterly net profit attributable to owners of the parent was ¥129.025 million, compared with a quarterly net loss attributable to owners of the parent of ¥17.236 million in the prior-year period.」
From the prior period's losses and sharp decline in profit due to upfront investment and higher expenses, the cumulative third quarter brought higher revenue and higher profit, further easing the decline in consolidated earnings. - FY2019-Q2MitigatedAnnual report
「During the cumulative second-quarter period, group revenue increased 29.9% year on year to ¥1,292.496 million, operating profit increased 149.6% to ¥82.627 million, ordinary profit increased 154.7% to ¥84.086 million, and quarterly net profit attributable to owners of the parent increased 680.3% to ¥61.104 million.」
The previous fiscal year saw lower profit and losses due to upfront investment and higher expenses, whereas the current cumulative quarter brought higher revenue and higher profit, easing the decline in consolidated earnings. The disclosure does not state that upfront investment itself was reduced. - FY2019-Q1MitigatedAnnual report
「As a result, during the cumulative first-quarter period, group revenue increased 22.1% year on year to ¥651.196 million, operating profit increased 20.3% to ¥44.969 million, ordinary profit increased 23.0% to ¥46.241 million, and quarterly net profit attributable to owners of the parent increased 103.7% to ¥35.883 million.」
The previous fiscal year saw a full-year operating loss and ordinary loss due to upfront investment and higher expenses, but this quarter brought higher revenue and higher profit, easing the decline in consolidated earnings attributable to upfront investment. - FY2018WorsenedAnnual report
「As a result, for the consolidated fiscal year, group revenue increased 5.2% year on year to ¥2,006.984 million, while the company recorded an operating loss of ¥12.750 million, compared with operating profit of ¥226.065 million in the prior year, an ordinary loss of ¥14.297 million, compared with ordinary profit of ¥234.437 million, and a net loss attributable to owners of the parent of ¥1,214.926 million, compared with net profit attributable to owners of the parent of ¥169.744 million.」
Under a management policy involving upfront investment and higher expenses, the company posted higher full-year revenue but an operating loss and an ordinary loss, as well as a net loss for the year. - FY2018-Q3WorsenedAnnual report
「We substantially increased upfront investment in development. As a result, during the cumulative third-quarter period, group revenue increased 5.8% year on year to ¥1,486.199 million, but operating profit fell 94.4% to ¥9.168 million and ordinary profit fell 94.5% to ¥8.832 million due to higher personnel and recruitment costs, among other factors. Quarterly net loss attributable to owners of the parent was ¥17.236 million, compared with quarterly net profit attributable to owners of the parent of ¥98.044 million in the prior-year period.」
Under the management policy of substantially increasing upfront investment in development, operating profit and ordinary profit declined sharply despite higher revenue, and the company recorded a quarterly net loss attributable to owners of the parent. - FY2018-Q2MaterialisedAnnual report
「In the current fiscal year, the company substantially increased expenses as upfront investment across the board, from product development to administrative functions, to expand its business going forward. However, revenue growth did not keep pace with the increase in expenses. As a result, during the cumulative second-quarter period, group revenue increased 16.8% year on year to ¥994.917 million, operating profit fell 66.6% to ¥33.106 million, ordinary profit fell 66.7% to ¥33.011 million, and quarterly net profit attributable to owners of the parent fell 86.7% to ¥7.830 million.」
Upfront investment expenses increased substantially from product development through administrative functions, while revenue growth failed to keep pace. As a result, operating profit, ordinary profit, and net profit declined despite higher revenue.