Strong first-half progress raises the likelihood of achieving the full-year profit forecast, while growth investment in the second half remains the focus

In the first half of FY2026 ending December, revenue rose 8.0% year on year to ¥26.507 billion, operating profit increased 14.3% to ¥1.871 billion and ordinary profit increased 45.8% to ¥1.709 billion. Interim net profit attributable to owners of the parent was also ¥73 million, turning profitable from a loss in the year-earlier period. In Q1 alone, revenue was ¥13.197 billion, operating profit was ¥837 million and ordinary profit was ¥782 million, indicating that earnings improvement continued through the first half.

The full-year outlook was revised to revenue of ¥53.0 billion from the previous ¥52.0 billion, while adjusted EBITDA of ¥7.0 billion, operating profit of ¥3.2 billion and ordinary profit of ¥2.8 billion were unchanged. Comparing first-half results simply with the full-year forecasts, progress was 50.0% for revenue, 58.5% for operating profit and 61.0% for ordinary profit. Profit progress is therefore ahead of the elapsed-period ratio. The decision not to translate the revenue upside directly into upward revisions to the profit forecasts suggests that part of the profit will be directed toward medium- to long-term advertising and brand investment.

In the past, even when new customers increased during periods of heavier advertising investment, subscription duration and purchase frequency fell short of expectations, resulting in weaker profit. This time, price revisions, productivity improvements, better advertising efficiency, lower logistics, sales promotion and sales commission ratios, and fixed-cost reductions are boosting profit. However, if advertising investment is expanded in the second half, it has yet to be tested how much of these improvement effects will remain.

In Q3, we will check whether cumulative revenue exceeds the simple 75% progress benchmark of ¥39.750 billion, operating profit of ¥2.4 billion and ordinary profit of ¥2.1 billion. In addition, we need to assess the increase in advertising expenses, gross profit margin, SG&A ratio and adjusted EBITDA progress to determine whether the higher revenue forecast reflects strong underlying demand or a proactive decision based on investment in the second half.