Full-year guidance is unchanged, but first-half revenue is tracking below the time-elapsed rate, leaving continued reliance on the second half

Revenue for the first half of FY2026 ended November (1 December 2025 to 31 May 2026) was ¥1,360.5 million, up 13.3% from ¥1,200.5 million in the same period a year earlier. Operating profit was ¥203.2 million, up 18.8% from ¥171.0 million, ordinary profit was ¥210.0 million, up 22.2%, and interim net profit was ¥144.9 million, up 31.7%. The operating margin also rose by approximately 0.7 percentage points, from approximately 14.2% in the same period a year earlier to approximately 14.9% in the first half, indicating that the first-half profit level itself was solid.

However, progress against the full-year forecasts was 42.2% for revenue, 48.5% for operating profit, 48.7% for ordinary profit and 47.6% for net profit. Revenue was approximately 7.8 percentage points below the simple 50% time-elapsed benchmark at the halfway point, while operating profit had reached almost half of the full-year forecast. The company says its plan is weighted toward the second half and incorporates the effects of ISMAP registration, with first-half revenue broadly in line with plan and profit substantially above plan. Revenue progress alone therefore does not warrant an immediate conclusion that the full-year target will be missed.

If the full-year forecast is allocated mechanically across the quarters, the amounts remaining after the first half are ¥1,865.5 million in revenue and ¥214.8 million in operating profit. If these are achieved evenly over the 2 second-half quarters, approximately ¥932.8 million in revenue and ¥107.4 million in operating profit would be required per quarter. This is not the company's formal quarterly forecast, but a mechanical benchmark for measuring progress at Q3. If cumulative Q3 revenue of ¥2,419.5 million and operating profit of ¥313.5 million, equivalent to 75% of the elapsed period, are not achieved, additional explanation will be needed in light of the plan's second-half weighting.

Q1 revenue was ¥661.7 million and operating profit was ¥87.6 million, while standalone Q2 revenue was approximately ¥698 million according to the earnings presentation. In Q3, it will be important to determine whether public-sector projects, enterprise licenses or professional services drove revenue, and whether the increase reflected one-off project recognition or contract wins linked to ARR expansion. The company reports a single Cloud Services Business segment and does not disclose revenue or profit by segment, so any supplementary disclosure of Q3 results by product or customer type would assist the assessment.