Worth reading
63In 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
723
¥ millionWording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Financial results presentationFY ending August 2026, third quarter5 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥15,879 million+18.5%
Operating profit¥602 million-32.3%
Net income¥328 million-42.7%
Selling, general and administrative expenses¥4,991 million
Results for the three months of the current quarter
Net Sales
¥5,217 million+16.1%
Gross profit
¥1,758 million+33.1%
Operating profit
¥77 million-4.1%
Net income
¥15 million-54.1%
Full-year earnings forecast
Net Sales
¥24,182 million
Gross profit
¥8,388 million
Operating profit
¥1,324 million
Net income
¥660 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 Sales65.7%
Gross profit66.7%
Operating profit45.5%
Net income49.7%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Increase in SG&A expenses¥440 million (increase attributable to growth investments)
Breakdown of selling, general and administrative expenses
Personnel Expenses2,246
Advertising spend472
Rent215
Fees paid644
Recruiting-related expenses575
Goodwill amortization315
Other521
New initiatives
- Launch of preparations for the IPO of M&A Succession Organization
- Change of corporate name from Digital Arrow Partners to TWOSTONE AIvita
- Strengthening proposal capabilities and improving matching accuracy through AI
- Specialization of sales functions
- Launch of new services in the AI and upstream consulting fields
- Active consideration of roll-up M&A
Key KPIsA metric the company considers important as a management benchmark.
- Consolidated number of engineers on assignment5,756 peopleYear on year against the same period last yearup 10.5% year on year
- Consolidated registered engineers68,674 peopleYear on year against the same period last yearup 19.8% year on year
- Active projects4,610 EngagementsYear on year against the same period last yearmaintained at the same level
- M&A opportunities under consideration343 EngagementsYear on year against the same period last yearup 69.8% year on year
- Full-time engineers hired49 people
- Consulting professionals hired14 people
Segment results
Midworks (engineer matching)
Quarterly revenue
¥4,069 million
Business profit
¥281 million
Year-on-year change in revenueup 7.6% year on year
Year-on-year change in profitup 36.4% year on year
Other engineer platformsOnly quarterly revenue disclosed in the charts
Marketing platformOnly quarterly revenue disclosed in the charts
Consulting and advisoryOnly quarterly revenue disclosed in the charts
OtherOnly quarterly revenue disclosed in the charts
Market Size / Share
Digital talent services market
2022¥12,482 100 million
2023¥13,615 100 million
2024¥14,928 100 million
2025 estimate¥16,257 100 million
2026 forecast¥17,598 100 million
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | FY ending August 2026, third quarter |
| Net Sales | ¥15,879 million (YoY +18.5%) |
| Operating profit | ¥602 million (YoY -32.3%) |
| Net income | ¥328 million (YoY -42.7%) |
| Selling, general and administrative expenses | ¥4,991 million |
| Results for the three months of the current quarter | Net Sales ¥5,217 million (YoY +16.1%) / Gross profit ¥1,758 million (YoY +33.1%) / Operating profit ¥77 million (YoY -4.1%) / Net income ¥15 million (YoY -54.1%) |
| Full-year earnings forecast | Net Sales ¥24,182 million / Gross profit ¥8,388 million / Operating profit ¥1,324 million / Net income ¥660 million |
| Progress against full-year forecast | Net Sales 65.7% / Gross profit 66.7% / Operating profit 45.5% / Net income 49.7% |
| Segment results | Midworks (engineer matching) Quarterly revenue ¥4,069 million / Business profit ¥281 million / Year-on-year change in revenue up 7.6% year on year / Year-on-year change in profit up 36.4% year on year / Other engineer platforms Only quarterly revenue disclosed in the charts / Marketing platform Only quarterly revenue disclosed in the charts / Consulting and advisory Only quarterly revenue disclosed in the charts / Other Only quarterly revenue disclosed in the charts |
| Breakdown of Factors Affecting the Change | Increase in SG&A expenses ¥440 million (increase attributable to growth investments) / Breakdown of selling, general and administrative expenses Personnel Expenses 2,246 / Advertising spend 472 / Rent 215 / Fees paid 644 / Recruiting-related expenses 575 / Goodwill amortization 315 / Other 521 |
| Key KPIs | Indicator name Consolidated number of engineers on assignment / Value 5,756 people / Year on year against the same period last year up 10.5% year on year, Indicator name Consolidated registered engineers / Value 68,674 people / Year on year against the same period last year up 19.8% year on year, Indicator name Active projects / Value 4,610 Engagements / Year on year against the same period last year maintained at the same level, Indicator name M&A opportunities under consideration / Value 343 Engagements / Year on year against the same period last year up 69.8% year on year, Indicator name Full-time engineers hired / Value 49 people / Year on year against the same period last year Not disclosed, Indicator name Consulting professionals hired / Value 14 people / Year on year against the same period last year Not disclosed |
| Market Size / Share | Digital talent services market 2022 ¥12,482 100 million / 2023 ¥13,615 100 million / 2024 ¥14,928 100 million / 2025 estimate ¥16,257 100 million / 2026 forecast ¥17,598 100 million |
| New initiatives | Launch of preparations for the IPO of M&A Succession Organization, Change of corporate name from Digital Arrow Partners to TWOSTONE AIvita, Strengthening proposal capabilities and improving matching accuracy through AI, Specialization of sales functions, Launch of new services in the AI and upstream consulting fields, Active consideration of roll-up M&A |
Items this document does not state (17)
Ordinary incomeGross profitOperating profit marginSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey 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 expansion in gross profit absorbed the ¥440 million increase in selling, general and administrative expenses, but operating profit remained roughly level with the previous year because the Company continued making growth investments aimed at medium- to long-term business expansion, including hiring full-time engineers, consulting professionals and executive talent.
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.