Worth reading
76Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
17.3
% (year-on-year increase in operating income)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings briefing transcriptFirst 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¥4,391 million-0.7%
Operating profit¥496 million+17.3%
Ordinary income¥528 million+16.0%
Net income¥419 million +26.0%profit attributable to owners of the parent
Gross Profit Margin32.0%
Operating profit margin11.3%
Selling, general and administrative expenses¥910 million
Results for the three months of the current quarterFor the three months of the quarter: revenue of ¥4,219 million, gross profit of ¥1,589 million, operating profit of ¥301 million, ordinary profit of ¥376 million, and quarterly net income attributable to owners of the parent of ¥223 million. However, because the figures do not correspond consistently with the cumulative 1Q column as presented in the materials, the reported figures have been extracted as stated.
Full-year earnings forecast
Net Sales
¥18,300 million
Operating profit
¥1,600 million
Ordinary income
¥1,615 million
Profit attributable to owners of the parent
¥1,050 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 Sales24.0%
Operating profit31.0%
Profit attributable to owners of the parent40.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance is tracking at the level initially expected. Revenue and operating profit came in at 115.6% and 124.1% of plan, respectively.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profitOperating profit increased by ¥73 million, from ¥423 million in the previous year’s quarter to ¥496 million
Gross profit+¥71 million
Personnel expenses (SG&A)Up ¥4 million
Recruitment costsDown ¥2 million
Training and development expenses¥3 million decrease due to higher operating expenses
Advertising expenses-¥5 million
Rent+¥6 million
Goodwill amortization-¥38 million
Total selling, general and administrative expensesDown ¥2 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The forecast assumes a quiet period for projects during which investment activity by companies with March year-ends temporarily declines, onboarding and training for new graduates, and a decline in projects associated with the change in fiscal year. Numerical assumptions: Not disclosed.New initiatives
- Adjusting the talent portfolio to transition to business operations based on generative AI
- Higher compensation structure in the Strategic Consulting area
- Higher starting salaries for new graduates entering consulting positions
- Launching sales of AntiSocial Checker®
- Entering into a ¥1 billion commitment line agreement
- Establishment of HRBP and FP&A functions
- Group-wide integration of internal control processes and ISO certifications
Key KPIsA metric the company considers important as a management benchmark.
- Number of new client companies16 companies
- Front-line employees859 PeopleYear on year against the same period last yearNet decrease of 35 people
- Total employees1,052 People
- Customer Base127 companies
- Average Revenue per Customer¥20.1 million
Unit price and quantity metricsThese figures show sales broken down by price and volume.
127 clients, 16 new clients, and average revenue per client of ¥20.1 million.Segment results
The company has a single segment, the Transformation Services business. For reference, by service area: strategic consulting revenue was ¥240 million, down 5.1% year on year; DX consulting revenue was ¥2,127 million, up 10.1%; DX engineering revenue was ¥1,339 million, up 2.5%; and Platform & Agent revenue was ¥901 million, down 16.1%.Medium-term management plan targets
The presentation covered progress under the 2nd Growth Plan (2025–2027). Actual performance relative to the numerical targets: Not disclosed.Financial targets
Net cash of ¥513 million, a net D/E ratio of -0.10, and an equity ratio of 48.8%. Whether these figures are stated as targets: Not disclosed.Number of employees
Number of EmployeesTotal employees: 1,052; frontline employees: 859
Change during the periodThe number of frontline employees decreased by a net 35 people year on year. Fifty-four new graduates joined the company in April 2026.
Hiring planApproximately 50 new graduates will be hired. The company will increase experienced hires for consulting positions while restraining hiring of engineers.
| Item | Details |
|---|---|
| Document type | Earnings briefing transcript |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Net Sales | ¥4,391 million (YoY -0.7%) |
| Operating profit | ¥496 million (YoY +17.3%) |
| Ordinary income | ¥528 million (YoY +16.0%) |
| Net income | ¥419 million (profit attributable to owners of the parent) (YoY +26.0%) |
| Gross Profit Margin | 32.0% |
| Operating profit margin | 11.3% |
| Selling, general and administrative expenses | ¥910 million |
| Results for the three months of the current quarter | For the three months of the quarter: revenue of ¥4,219 million, gross profit of ¥1,589 million, operating profit of ¥301 million, ordinary profit of ¥376 million, and quarterly net income attributable to owners of the parent of ¥223 million. However, because the figures do not correspond consistently with the cumulative 1Q column as presented in the materials, the reported figures have been extracted as stated. |
| Full-year earnings forecast | Net Sales ¥18,300 million / Operating profit ¥1,600 million / Ordinary income ¥1,615 million / Profit attributable to owners of the parent ¥1,050 million |
| Progress against full-year forecast | Net Sales 24.0% / Operating profit 31.0% / Profit attributable to owners of the parent 40.0% |
| Self-assessment against the plan | Performance is tracking at the level initially expected. Revenue and operating profit came in at 115.6% and 124.1% of plan, respectively. |
| Segment results | The company has a single segment, the Transformation Services business. For reference, by service area: strategic consulting revenue was ¥240 million, down 5.1% year on year; DX consulting revenue was ¥2,127 million, up 10.1%; DX engineering revenue was ¥1,339 million, up 2.5%; and Platform & Agent revenue was ¥901 million, down 16.1%. |
| Breakdown of Factors Affecting the Change | Change in operating profit Operating profit increased by ¥73 million, from ¥423 million in the previous year’s quarter to ¥496 million / Gross profit +¥71 million / Personnel expenses (SG&A) Up ¥4 million / Recruitment costs Down ¥2 million / Training and development expenses ¥3 million decrease due to higher operating expenses / Advertising expenses -¥5 million / Rent +¥6 million / Goodwill amortization -¥38 million / Other Not disclosed / Total selling, general and administrative expenses Down ¥2 million |
| Key KPIs | Indicator name Number of new client companies / Value 16 companies / Year on year against the same period last year Not disclosed, Indicator name Front-line employees / Value 859 People / Year on year against the same period last year Net decrease of 35 people, Indicator name Total employees / Value 1,052 People / Year on year against the same period last year Not disclosed, Indicator name Customer Base / Value 127 companies / Year on year against the same period last year Not disclosed, Indicator name Average Revenue per Customer / Value ¥20.1 million / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | 127 clients, 16 new clients, and average revenue per client of ¥20.1 million. |
| Number of employees | Number of Employees Total employees: 1,052; frontline employees: 859 / Change during the period The number of frontline employees decreased by a net 35 people year on year. Fifty-four new graduates joined the company in April 2026. / Hiring plan Approximately 50 new graduates will be hired. The company will increase experienced hires for consulting positions while restraining hiring of engineers. |
| Assumptions Underlying the Business Outlook | The forecast assumes a quiet period for projects during which investment activity by companies with March year-ends temporarily declines, onboarding and training for new graduates, and a decline in projects associated with the change in fiscal year. Numerical assumptions: Not disclosed. |
| Medium-term management plan targets | The presentation covered progress under the 2nd Growth Plan (2025–2027). Actual performance relative to the numerical targets: Not disclosed. |
| Financial targets | Net cash of ¥513 million, a net D/E ratio of -0.10, and an equity ratio of 48.8%. Whether these figures are stated as targets: Not disclosed. |
| New initiatives | Adjusting the talent portfolio to transition to business operations based on generative AI, Higher compensation structure in the Strategic Consulting area, Higher starting salaries for new graduates entering consulting positions, Launching sales of AntiSocial Checker®, Entering into a ¥1 billion commitment line agreement, Establishment of HRBP and FP&A functions, Group-wide integration of internal control processes and ISO certifications |
Items this document does not state (9)
Number of stores and locationsRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition 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.Profitability in the DX consulting business recovered, increasing gross profit, while the company controlled the increase in selling, general and administrative expenses. The presentation also explained that growth slowed in the Platform & Agent business and utilization declined in the DX engineering business.
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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.