First-half revenue and operating profit increased, but ¥3,076 million is needed in the second half to meet the full-year operating profit forecast

Revenue for January through June 2026 was ¥22,269 million, operating profit was ¥3,234 million, profit before tax was ¥3,248 million, and profit attributable to owners of the parent was ¥1,823 million. Revenue increased 11.7% from ¥19,937 million in the same period a year earlier, while operating profit rose 2.2% from ¥3,163 million. However, profit growth was well below revenue growth, making it difficult to say that higher revenue translated directly into profit growth.

The full-year forecasts remain unchanged at revenue of ¥46,700 million and operating profit of ¥6,310 million. First-half progress was approximately 47.7% for revenue and 51.3% for operating profit. Operating profit is progressing smoothly, as indicated in the company’s materials, but revenue is approximately 2.3 percentage points below a simple halfway mark. Subtracting first-half results from the full-year forecasts means that the second half requires revenue of ¥24,431 million and operating profit of ¥3,076 million. In FY2026-Q3, investors will need to check not only cumulative progress through the third quarter but also whether the quarter itself delivered year-on-year revenue and profit growth.

Margins require attention. The first-half operating margin was approximately 14.5%, based on operating profit of ¥3,234 million against revenue of ¥22,269 million, down approximately 1.3 percentage points from approximately 15.9% a year earlier, based on operating profit of ¥3,163 million against revenue of ¥19,937 million. Selling, general and administrative expenses increased 19.9% year on year to ¥9,347 million. Personnel expenses rose 17.5% to ¥4,512 million, recruitment, training and employee benefit expenses increased 25.2% to ¥522 million, office and systems expenses rose 19.9% to ¥1,607 million, and sales-related expenses increased 23.2% to ¥1,872 million. With the integration of newly wholly owned subsidiaries and continued growth investment, the key question is whether second-half revenue growth can absorb these higher costs.

At the next earnings announcement, the focus should be not only on whether the full-year forecasts are revised, but also on management’s view of the ¥24,431 million of revenue and ¥3,076 million of operating profit required in the second half. The latest disclosure does not provide the risk amounts incorporated into the full-year forecasts or numerical assumptions for foreign exchange rates, prices and recruitment costs. In addition, the second-quarter materials do not disclose standalone three-month earnings, so another point to monitor in FY2026-Q3 is whether the company discloses standalone quarterly revenue, operating profit and operating margin alongside cumulative figures.