Assuming a return to a loss in FY2026, FY2027-Q1 will test loss reduction rather than revenue recovery

Consolidated revenue was ¥553.635 million in FY2026, the operating loss was ¥238.110 million, and the net loss attributable to owners of the parent was ¥277.288 million. In the previous fiscal year, FY2025, revenue was ¥897.378 million, operating profit was ¥183.175 million, and net income attributable to owners of the parent was ¥87.339 million. Revenue deteriorated by ¥343.743 million and operating profit or loss deteriorated by ¥421.285 million. In FY2027-Q1, the focus should be not simply on whether the year-on-year revenue decline narrows, but on whether the loss has actually peaked.

The deterioration in margins cannot be explained by the decline in revenue alone. Gross profit fell from ¥787.013 million in FY2025 to ¥440.035 million in FY2026, and the gross profit margin declined by 8.2 percentage points, from approximately 87.7% to approximately 79.5%. Meanwhile, cost of sales increased from ¥110.364 million to ¥113.600 million, remaining almost flat even as revenue declined by approximately 38%. In FY2027-Q1, it will be necessary to show expense amounts by category, including cost of sales, personnel and outsourcing expenses, and system usage fees, to assess how closely expenses are tracking the recovery in revenue.

Cumulative revenue through the third quarter was approximately ¥452.7 million and the operating loss was approximately ¥188.8 million. This implies that the fourth quarter of FY2026 alone added approximately ¥101.0 million in revenue and approximately ¥49.3 million in operating loss. The full-year operating margin fell from approximately 20.4% in FY2025 to negative approximately 43.0% in FY2026. If the FY2027-Q1 operating loss exceeds approximately ¥59.5 million, equivalent to one-quarter of the FY2026 full-year operating loss, the possibility that the cost structure has not yet improved sufficiently should be considered, although seasonality will also need to be taken into account.

The company has not disclosed a consolidated earnings forecast for the fiscal year ending May 2027, so progress against company-wide numerical targets cannot be assessed directly as of FY2027-Q1. Accordingly, at the next results announcement it will be important to disclose separately, in addition to consolidated revenue and operating profit or loss, revenue and operating profit or loss for PostPrime and the new M&A advisory business, as well as one-time expenses associated with the withdrawal from TakaTrade. The company will need to explain whether any reduction in losses is attributable to a recovery in revenue or to cost reductions.