Revenue growth, but margins fell sharply due to growth investments

Revenue for the period from January to June 2026 was ¥875.076 million, up 24.5% from ¥702.749 million in the same period of the previous year. Operating income, however, swung from a ¥36.428 million profit in the same period of the previous year to a ¥151.694 million operating loss. Calculated operating margin fell by approximately 22.5 percentage points, from approximately 5.2% to approximately negative 17.3%, making the divergence between revenue growth and profit the central change in these results.

Standalone Q2 revenue also increased 25.2% year on year to ¥451 million, but the operating loss was ¥109 million. Gross margin for the first half was 79.2%, down 4.5 percentage points year on year. Selling, general and administrative expenses reached ¥850.876 million, and the company explained that higher costs associated with hiring and developing personnel, advertising, research and development, and the use of AI technology weighed on profit. However, the increases by investment category and the split between temporary and recurring cost increases have not been disclosed in sufficient detail.

The full-year forecasts remain unchanged at revenue of ¥1,858 million, an operating loss of ¥579 million, an ordinary loss of ¥580 million, and a net loss of ¥546 million. First-half revenue represented 47.1% of the full-year forecast, and the company expects revenue to build in the second half due to the characteristics of its recurring revenue. On a simple difference basis, ¥983 million is required in the second half to meet the full-year revenue forecast, while the difference between the first-half operating loss of ¥151.694 million and the full-year forecast implies an additional operating loss of approximately ¥427 million in the second half. In Q3, it will be necessary to assess not only the build-up in revenue, but also the pace of operating-loss expansion, whether gross margin has bottomed out, and the breakdown of investment costs.