Notice regarding the recognition of extraordinary income (gain on negative goodwill), differences between the earnings forecast and actual results for the second quarter (interim period) of the fiscal year ending October 2026, and revisions to the full-year earnings forecast for the fiscal year ending October 2026 | TOP CULTURE Co.,Ltd. (7640) timely disclosure

Worth reading

76Important

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

747

¥ million

Wording

Avoiding a definitive answer

How definitive the wording is.

Revised forecast

Fiscal year ending October 2026 · Second quarter (interim period) and full yearPrevious forecast published 11 December 2025

Net SalesConsolidated · second quarter (interim period)9,626→9,398million

-2.3%

Net SalesNon-consolidated · second quarter (interim period)8,571→7,902million

-7.8%

Net SalesConsolidated - full year18,250→—million

—

Net SalesNon-consolidated - full year16,076→—million

—

Operating profitConsolidated · second quarter (interim period)273→142million

-47.8%

Operating profitConsolidated - full year395→—million

—

Operating profitNon-consolidated · second quarter (interim period)—→—million

—

Operating profitNon-consolidated - full year—→—million

—

Ordinary incomeConsolidated · second quarter (interim period)227→113million

-50.0%

Ordinary incomeNon-consolidated · second quarter (interim period)155→30million

-80.6%

Ordinary incomeConsolidated - full year295→—million

—

Ordinary incomeNon-consolidated - full year77→—million

—

Profit attributable to owners of the parentConsolidated · second quarter (interim period)186→812million

+334.2%

Profit attributable to owners of the parentNon-consolidated · second quarter (interim period)145→22million

-84.4%

Profit attributable to owners of the parentConsolidated - full year164→—million

—

Profit attributable to owners of the parentNon-consolidated - full year27→—million

—

Net income per shareConsolidated · second quarter (interim period)11.98→52.02

+334.2%

Net income per shareNon-consolidated · second quarter (interim period)9.32→1.45

-84.4%

Net income per shareConsolidated - full year10.51→—

—

Net income per shareNon-consolidated - full year1.75→—

—

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

Operating income and ordinary income fell below the previous forecast because costs associated with store closures and renovations of existing stores were higher than expected. In connection with 明文堂's acquisition of the book retail business comprising 9 stores and the outside sales division, the company recognized a ¥747 million gain on negative goodwill. The full-year forecast was left undetermined because the future operating policy for the acquired stores is under review and the impact on results may vary.

Previous-period resultsConsolidated · second quarter (interim period) Net Sales 9,302 / Operating profit -111 / Ordinary income -149 / Profit attributable to owners of the parent -262 / Net income per share -16.8 / Non-consolidated · second quarter (interim period) Net Sales 8,379 / Ordinary income -189 / Net income for the current fiscal year -285 / Net income per share -18.29 / Consolidated / full-year disclosure field Net Sales 17,333 / Operating profit -391 / Ordinary income -476 / Profit attributable to owners of the parent -731 / Net income per share -46.84 / Non-consolidated / full-year disclosure field Net Sales 15,429 / Ordinary income -586 / Net income for the current fiscal year -805 / Net income per share -51.58

Consolidated / non-consolidatedConsolidated / non-consolidated (standalone)

Revised forecast
Item	Details
Net Sales	Consolidated · second quarter (interim period) 9,626 / Non-consolidated · second quarter (interim period) 8,571 / Consolidated - full year 18,250 / Non-consolidated - full year 16,076 → Consolidated · second quarter (interim period) 9,398 / Non-consolidated · second quarter (interim period) 7,902 / Consolidated - full year Not disclosed / Non-consolidated - full year Not disclosed（Consolidated · second quarter (interim period) -2.3 / Non-consolidated · second quarter (interim period) -7.8 / Consolidated - full year Not disclosed / Non-consolidated - full year Not disclosed）
Operating profit	Consolidated · second quarter (interim period) 273 / Consolidated - full year 395 / Non-consolidated · second quarter (interim period) Not disclosed / Non-consolidated - full year Not disclosed → Consolidated · second quarter (interim period) 142 / Consolidated - full year Not disclosed / Non-consolidated · second quarter (interim period) Not disclosed / Non-consolidated - full year Not disclosed（Consolidated · second quarter (interim period) -47.8 / Consolidated - full year Not disclosed / Non-consolidated · second quarter (interim period) Not disclosed / Non-consolidated - full year Not disclosed）
Ordinary income	Consolidated · second quarter (interim period) 227 / Non-consolidated · second quarter (interim period) 155 / Consolidated - full year 295 / Non-consolidated - full year 77 → Consolidated · second quarter (interim period) 113 / Non-consolidated · second quarter (interim period) 30 / Consolidated - full year Not disclosed / Non-consolidated - full year Not disclosed（Consolidated · second quarter (interim period) -50 / Non-consolidated · second quarter (interim period) -80.6 / Consolidated - full year Not disclosed / Non-consolidated - full year Not disclosed）
Profit attributable to owners of the parent	Consolidated · second quarter (interim period) 186 / Non-consolidated · second quarter (interim period) 145 / Consolidated - full year 164 / Non-consolidated - full year 27 → Consolidated · second quarter (interim period) 812 / Non-consolidated · second quarter (interim period) 22 / Consolidated - full year Not disclosed / Non-consolidated - full year Not disclosed（Consolidated · second quarter (interim period) 334.2 / Non-consolidated · second quarter (interim period) -84.4 / Consolidated - full year Not disclosed / Non-consolidated - full year Not disclosed）
Net income per share	Consolidated · second quarter (interim period) 11.98 / Non-consolidated · second quarter (interim period) 9.32 / Consolidated - full year 10.51 / Non-consolidated - full year 1.75 → Consolidated · second quarter (interim period) 52.02 / Non-consolidated · second quarter (interim period) 1.45 / Consolidated - full year Not disclosed / Non-consolidated - full year Not disclosed
Fiscal Period Covered	Fiscal year ending October 2026
Period Covered	Second quarter (interim period) and full year
Publication date of previous forecast	11 December 2025
Previous-period results	Consolidated · second quarter (interim period) Net Sales 9,302 / Operating profit -111 / Ordinary income -149 / Profit attributable to owners of the parent -262 / Net income per share -16.8 / Non-consolidated · second quarter (interim period) Net Sales 8,379 / Ordinary income -189 / Net income for the current fiscal year -285 / Net income per share -18.29 / Consolidated / full-year disclosure field Net Sales 17,333 / Operating profit -391 / Ordinary income -476 / Profit attributable to owners of the parent -731 / Net income per share -46.84 / Non-consolidated / full-year disclosure field Net Sales 15,429 / Ordinary income -586 / Net income for the current fiscal year -805 / Net income per share -51.58
Reason for the revision	Operating income and ordinary income fell below the previous forecast because costs associated with store closures and renovations of existing stores were higher than expected. In connection with 明文堂's acquisition of the book retail business comprising 9 stores and the outside sales division, the company recognized a ¥747 million gain on negative goodwill. The full-year forecast was left undetermined because the future operating policy for the acquired stores is under review and the impact on results may vary.
Consolidated / non-consolidated	Consolidated / non-consolidated (standalone)

Items this document does not state (2)

Details and amount of extraordinary lossDividend forecast revision

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.

Operating income and ordinary income for the second quarter fell below forecast because costs associated with store closures and renovations of existing stores were higher than expected. Net income exceeded forecast due to the recognition of a ¥747 million gain on negative goodwill arising from the business transfer to 明文堂. The full-year forecast was left undetermined because the impact on results may vary depending on the future operating policy, including renovations, for the stores acquired through the business transfer, which is currently under review.

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