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Earnings presentation7035and factory,incInformation and Communications, Services and Others

Second-Quarter Financial Results Presentation for the Fiscal Year Ending August 2026

Cumulative second-quarter revenue was slightly below plan, while the operating loss narrowed due to cost reductions and a review of unprofitable services. The full-year forecast remains unchanged, and the company continues to target a return to operating profitability.

Worth reading
59In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
44
Millions of yen (year-on-year improvement in operating income/loss, standalone Q2)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending August 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,424 million-11.9%
Operating profit¥-90 million
Results for the three months of the current quarter
Net Sales
1Q¥699 million
2Q¥724 million
Operating profit (loss)
1Q¥-72 million
2Q¥-18 million
Full-year earnings forecast
Net Sales
¥3,072 million
Operating profit
¥0 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 Sales46.4%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue was slightly below plan, while operating income/loss came in above plan
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Uncertainty
Net Sales−¥50 million to +¥50 million
Operating profit−¥50 million to +¥50 million
New initiatives
  • The bridge business will be transferred from narrative through an absorption-type company split, and a specialist division will be established
  • Completed development of a generative AI-powered manga drawing support tool
  • Plans to begin joint development of a large-scale D2C project with top creators
  • Plans to launch a virtual talent management business
  • Expansion into manga production processes using the manga drawing support tool
Key KPIsA metric the company considers important as a management benchmark.
  • Manga app MAU812 10,000 people
    Year on year against the same period last yearDecreased
  • Manga app paying-user ARPU
    Year on year against the same period last yearHigher
  • Manga app advertising ARPU
    Year on year against the same period last yearFlat
  • &AND HOSTEL average occupancy rate88.9 %
  • Advertising expense ratio (to app business revenue)28 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
MAUDecreased
Paying-user ARPUIncrease from the previous quarter
Advertising ARPUFlat
HOSTEL average occupancy rateApproximately 88.9%, prioritizing occupancy by lowering ADR
Segment results
Manga Business
Net Sales
¥485 million
Operating profit
¥45 million
Entertainment businesses
Net Sales
¥210 million
Operating profit
¥-11 million
RET business
Net Sales
¥17 million
Operating profit
¥2 million
Other
Net Sales
¥11 million
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Net Sales−¥50 million to +¥50 million
Operating profit−¥50 million to +¥50 million
DetailsUncertainty from the third quarter onward
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending August 2026
Net Sales¥1,424 million (YoY -11.9%)
Operating profit¥-90 million
Results for the three months of the current quarterNet Sales 1Q ¥699 million / 2Q ¥724 million / Operating profit (loss) 1Q ¥-72 million / 2Q ¥-18 million
Full-year earnings forecastNet Sales ¥3,072 million / Operating profit ¥0 million
Progress against full-year forecastNet Sales 46.4%
Self-assessment against the planRevenue was slightly below plan, while operating income/loss came in above plan
Segment resultsManga Business Net Sales ¥485 million / Operating profit ¥45 million / Year on year against the same period last year Not disclosed / Entertainment businesses Net Sales ¥210 million / Operating profit ¥-11 million / Year on year against the same period last year Not disclosed / RET business Net Sales ¥17 million / Operating profit ¥2 million / Year on year against the same period last year Not disclosed / Other Net Sales ¥11 million / Operating profit Not disclosed / Year on year against the same period last year Not disclosed
Key KPIsIndicator name Manga app MAU / Value 812 10,000 people / Year on year against the same period last year Decreased, Indicator name Manga app paying-user ARPU / Value Not disclosed / Year on year against the same period last year Higher, Indicator name Manga app advertising ARPU / Value Not disclosed / Year on year against the same period last year Flat, Indicator name &AND HOSTEL average occupancy rate / Value 88.9 % / Year on year against the same period last year Not disclosed, Indicator name Advertising expense ratio (to app business revenue) / Value 28 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsMAU Decreased / Paying-user ARPU Increase from the previous quarter / Advertising ARPU Flat / HOSTEL average occupancy rate Approximately 88.9%, prioritizing occupancy by lowering ADR
Assumptions Underlying the Business OutlookUncertainty Net Sales −¥50 million to +¥50 million / Operating profit −¥50 million to +¥50 million
Risk amount incorporated into the outlookNet Sales −¥50 million to +¥50 million / Operating profit −¥50 million to +¥50 million / Details Uncertainty from the third quarter onward
New initiativesThe bridge business will be transferred from narrative through an absorption-type company split, and a specialist division will be established, Completed development of a generative AI-powered manga drawing support tool, Plans to begin joint development of a large-scale D2C project with top creators, Plans to launch a virtual talent management business, Expansion into manga production processes using the manga drawing support tool
Items this document does not state (17)
Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesBreakdown of Factors Affecting the ChangeNumber of stores and locationsNumber of employeesMedium-term management plan targetsFinancial targetsAnnual 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.

The improvement in operating income/loss was attributed to identifying unprofitable services and optimizing cost of sales and SG&A expenses, as well as reviewing infrastructure and system costs, advertising expenses and personnel costs. The decline in revenue was attributed to sluggish growth in the core manga app, lower revenue from the fortune-teller service, and the absence of the one-time real estate advisory fee recorded in the previous year.

How to read this page

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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.
Second-Quarter Financial Results Presentation for the Fiscal Year Ending August 2026 | and factory,inc (7035) timely disclosure | Komori