Q1 operating profit exceeded the full-year forecast, and FY2027-H1 will distinguish underlying progress from seasonality.

FY2027-Q1 revenue was ¥1,446.771 million, up 6.4% year on year, while operating profit was ¥688.297 million, also up 6.4%. Ordinary profit was ¥688.131 million, and net income was ¥435.987 million, up 3.3% year on year. The operating margin was approximately 47.6%, virtually unchanged from approximately 47.6% in the same quarter of the previous year. Accordingly, the Q1 increase in profit appears to have resulted less from a significant improvement in margins than from expanding revenue at roughly the same margin.

By comparison with the FY2027 full-year forecast, Q1 revenue of ¥1,446.771 million represents 54.0% of the ¥2,680 million forecast, while operating profit of ¥688.297 million represents 113.2% of the ¥608 million forecast. On operating profit alone, the company had already exceeded its full-year forecast by ¥80.3 million at the Q1 stage. However, the company has explained that approximately 55% of annual revenue and approximately 72% of annual operating profit were recorded in Q1 of FY2026, indicating that results have historically been heavily concentrated in the first half, particularly Q1. It also explained that, by FY2026-H1, approximately 73% of revenue and approximately 89% of operating profit had already been recorded by the end of the interim period of the previous fiscal year. It is therefore too early to judge a full-year upside based solely on Q1 progress.

The FY2027 full-year forecast is revenue of ¥2,680 million, operating profit of ¥608 million, ordinary profit of ¥612 million and net income of ¥395 million, with all profit items planned to decline substantially from the previous fiscal year's results. The company expects to phase in growth investments, including advertising expenses, from Q2 through Q4. Therefore, in FY2027-H1, it will be necessary to examine not only cumulative revenue progress but also the timing of advertising expenses and the increase in SG&A expenses before determining whether the Q1 profit outperformance indicates room for a full-year upward revision or is merely seasonal.

The Q1 results did not disclose revenue or profit by segment, cash flow from operating activities, actual advertising expenses or the number of customer companies. In FY2027-H1, in addition to cumulative revenue and operating profit, we will want to confirm progress against the full-year forecast, year-on-year SG&A expenses, actual advertising expenses and whether the earnings forecast has been revised. In particular, if the company maintains its forecast despite operating profit already exceeding the full-year forecast at Q1, it will be important to see whether it can explain the investment planned for the second half in monetary terms.