Worth reading
61In 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
20.7
Year-on-year change in revenue (%)Wording
Conditional
How definitive the wording is.Contents of this document
Financial Results PresentationSecond quarter of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,544 Millions of yen+20.7%
Operating profit-7 Millions of yen
Ordinary income¥77 million cumulative first half
Net income¥22 million cumulative first half, net income attributable to owners of the parent
Selling, general and administrative expenses¥696 million second quarter
Gross Profit MarginDigital Transformation business: 47.5% (down from 50.0% in the previous quarter); DX × Technology business: 27.0% (up from 26.6% in the previous quarter); DX × HR business: 47.9% (up from 47.1% in the previous quarter)
Operating profit marginConsolidated: 2.4% (cumulative first half); year-on-year change: Not disclosed. Second-quarter standalone: ▲0.5%
Results for the three months of the current quarterRevenue of ¥1,544 million, EBITDA of ¥36 million, an EBITDA margin of 2.3%, and operating loss of ¥7 million. Segment revenue was ¥1,083 million for the Digital Transformation business, ¥381 million for the DX × Technology business, and ¥144 million for the DX × HR business. Gross profit was ¥514 million, ¥103 million, and ¥69 million, respectively.
Full-year earnings forecastConsolidated revenue of ¥6,600 million, consolidated operating profit of ¥500 million, consolidated ordinary profit of ¥490 million, and net income attributable to owners of the parent of ¥340 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。Consolidated revenue: 48.2%; Digital Transformation business revenue: 47.2%; combined DX × Technology and DX × HR business revenue: 50.7%; consolidated operating profit: 15.4%; consolidated ordinary profit: 15.9%; net income attributable to owners of the parent: 6.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Consolidated revenue is progressing broadly in line with the plan. Although the first-half progress rate for consolidated operating profit is low, the company expects to achieve its full-year forecast.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Key factors affecting EBITDA: lower gross profit due to a decline in the utilization rate in the Digital Transformation business, and higher personnel and recruitment costs associated with workforce expansion. Second-quarter SG&A breakdown: personnel costs ¥201 million, outsourcing costs ¥67 million, recruitment costs ¥120 million, rent ¥164 million, depreciation and other costs ¥44 million, and other expenses ¥97 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
An average full-year utilization rate of 94% for the Digital Transformation business, with recovery in the utilization rate as assignments progress in the second half. Numerical assumptions for other factors, including foreign exchange rates, raw material prices, and interest rates, were Not disclosedNew initiatives
Development of AI products; establishment of an Intelligence Center; opening of the Tokai branch; revisions to the compensation system from FY2027; development of the Middle market; and expansion beyond a person-month-dependent business model through the conversion and reuse of frontline knowledge as intellectual assetsKey KPIsA metric the company considers important as a management benchmark.
Consultant unit price: ¥1.66 million per month (up 4.8% year on year); billable person-months in the DX business: 193 person-months; utilization rate: 87%; period-end engineer headcount in the DX × Technology business: 138; monthly service engagements in the DX × HR business: 563; new contracts in the DX × HR business: 46Unit price and quantity metricsThese figures show sales broken down by price and volume.
Digital Transformation business: 193 billable person-months, an 87% utilization rate, and a unit price of ¥1,657 thousand per month. DX × Technology business: 138 engineers and an engineer unit price of ¥679 thousand per month. DX × HR business: 563 service engagements per month and a transaction unit price of ¥69 thousand per monthSegment results
Digital Transformation business: revenue of ¥1,083 million and gross profit of ¥514 million; year-on-year change was Not disclosed for revenue and +46.9% for gross profit. DX × Technology business: revenue of ¥381 million (up 22.5% year on year) and gross profit of ¥103 million (up 43.1%). DX × HR business: revenue of ¥144 million (up 41.2% year on year) and gross profit of ¥69 million (up 38.0%).Market Size / Share
The company stated that the AI implementation market is expected to expand further, but specific figures for market size and market share were Not disclosedNumber of employees
The Digital Transformation business had 216 employees at the end of the period (up 12.5% from the previous quarter). The DX business had 42 managers.| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Net Sales | 1,544 Millions of yen (YoY +20.7%) |
| Operating profit | -7 Millions of yen |
| Ordinary income | ¥77 million (cumulative first half) |
| Net income | ¥22 million (cumulative first half, net income attributable to owners of the parent) |
| Gross Profit Margin | Digital Transformation business: 47.5% (down from 50.0% in the previous quarter); DX × Technology business: 27.0% (up from 26.6% in the previous quarter); DX × HR business: 47.9% (up from 47.1% in the previous quarter) |
| Operating profit margin | Consolidated: 2.4% (cumulative first half); year-on-year change: Not disclosed. Second-quarter standalone: ▲0.5% |
| Selling, general and administrative expenses | ¥696 million (second quarter) |
| Results for the three months of the current quarter | Revenue of ¥1,544 million, EBITDA of ¥36 million, an EBITDA margin of 2.3%, and operating loss of ¥7 million. Segment revenue was ¥1,083 million for the Digital Transformation business, ¥381 million for the DX × Technology business, and ¥144 million for the DX × HR business. Gross profit was ¥514 million, ¥103 million, and ¥69 million, respectively. |
| Full-year earnings forecast | Consolidated revenue of ¥6,600 million, consolidated operating profit of ¥500 million, consolidated ordinary profit of ¥490 million, and net income attributable to owners of the parent of ¥340 million |
| Progress against full-year forecast | Consolidated revenue: 48.2%; Digital Transformation business revenue: 47.2%; combined DX × Technology and DX × HR business revenue: 50.7%; consolidated operating profit: 15.4%; consolidated ordinary profit: 15.9%; net income attributable to owners of the parent: 6.5% |
| Self-assessment against the plan | Consolidated revenue is progressing broadly in line with the plan. Although the first-half progress rate for consolidated operating profit is low, the company expects to achieve its full-year forecast. |
| Segment results | Digital Transformation business: revenue of ¥1,083 million and gross profit of ¥514 million; year-on-year change was Not disclosed for revenue and +46.9% for gross profit. DX × Technology business: revenue of ¥381 million (up 22.5% year on year) and gross profit of ¥103 million (up 43.1%). DX × HR business: revenue of ¥144 million (up 41.2% year on year) and gross profit of ¥69 million (up 38.0%). |
| Breakdown of Factors Affecting the Change | Key factors affecting EBITDA: lower gross profit due to a decline in the utilization rate in the Digital Transformation business, and higher personnel and recruitment costs associated with workforce expansion. Second-quarter SG&A breakdown: personnel costs ¥201 million, outsourcing costs ¥67 million, recruitment costs ¥120 million, rent ¥164 million, depreciation and other costs ¥44 million, and other expenses ¥97 million |
| Key KPIs | Consultant unit price: ¥1.66 million per month (up 4.8% year on year); billable person-months in the DX business: 193 person-months; utilization rate: 87%; period-end engineer headcount in the DX × Technology business: 138; monthly service engagements in the DX × HR business: 563; new contracts in the DX × HR business: 46 |
| Unit price and quantity metrics | Digital Transformation business: 193 billable person-months, an 87% utilization rate, and a unit price of ¥1,657 thousand per month. DX × Technology business: 138 engineers and an engineer unit price of ¥679 thousand per month. DX × HR business: 563 service engagements per month and a transaction unit price of ¥69 thousand per month |
| Number of employees | The Digital Transformation business had 216 employees at the end of the period (up 12.5% from the previous quarter). The DX business had 42 managers. |
| Assumptions Underlying the Business Outlook | An average full-year utilization rate of 94% for the Digital Transformation business, with recovery in the utilization rate as assignments progress in the second half. Numerical assumptions for other factors, including foreign exchange rates, raw material prices, and interest rates, were Not disclosed |
| Market Size / Share | The company stated that the AI implementation market is expected to expand further, but specific figures for market size and market share were Not disclosed |
| New initiatives | Development of AI products; establishment of an Intelligence Center; opening of the Tokai branch; revisions to the compensation system from FY2027; development of the Middle market; and expansion beyond a person-month-dependent business model through the conversion and reuse of frontline knowledge as intellectual assets |
Items this document does not state (10)
Number of stores and locationsRisk 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.Revenue increased due to growth in the number of engineers in the DX × Technology business, the accumulation of service engagements and acquisition of enterprise projects in the DX × HR business, and other factors. On the profit side, the decline in the utilization rate in the Digital Transformation business, personnel costs recorded during new graduate training, and higher personnel and recruitment costs associated with workforce expansion had an impact. The company expects to achieve its full-year forecast through a recovery in the utilization rate as assignments progress in the second half and through growth in revenue and profit.
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