Achieving the full-year operating profit of ¥14 million requires a recovery in profit in the second half.

Revenue in the first quarter of the fiscal year ending March 2027 was ¥2,259 million, the operating loss was ¥27 million, the ordinary loss was ¥24 million and the net loss was ¥29 million. Revenue was equivalent to 23.7% of the full-year forecast of ¥9,527 million, approximately 1.3 percentage points below the simple time-apportioned benchmark of 25% after 3 months. While it is difficult to say that revenue has deviated materially from plan, the company remains in the pre-profitability stage.

To move from the first-quarter operating loss of ¥27 million to full-year operating profit of ¥14 million, a total of ¥41 million in operating profit must be accumulated over the remaining 9 months on a simple calculation. If cumulative second-quarter operating profit does not reach ¥0 million, an additional shortfall will have to be recovered entirely in the second half. For cumulative second-quarter revenue, 50% of the full-year forecast is ¥4,763.5 million, making approximately ¥4,764 million the time-period benchmark for FY2027-H1. However, the company has not disclosed quarterly profit forecasts, and the 50% level is not official guidance.

The earnings presentation explained that the first-quarter loss and investment costs were already incorporated into the full-year plan, and that revenue growth is expected in the second half as new graduates become productive. Accordingly, the key issue at the next results announcement will not be simple revenue progress alone, but the extent to which operating profit improves after absorbing investment and recruitment costs. The company has not yet disclosed quarterly amounts showing whether the ¥41 million of profit required in the second half will come from a recovery in the existing business, growth in services for seniors or cost controls.

In FY2027-H1, cumulative revenue, operating income or loss, ordinary income or loss and net income or loss will be reviewed against the full-year forecasts. The focus will be on whether operating income or loss has improved from the first-quarter loss to at least ¥0 million, and whether the full-year operating profit forecast of ¥14 million is maintained. The first-quarter plan is described as being “on plan,” but the required first-half profit and the monthly or quarterly recovery amounts for the second half have not been provided, so it will also be necessary to check whether the next disclosure fills this gap.