FY2027-Q1 is the point at which to assess whether operating profit is on a recovery path from ¥72 million to ¥350 million

Consolidated revenue in FY2026 increased 5.9% year on year to ¥26,230 million, but operating profit fell 88.4% to ¥72 million from ¥625 million a year earlier, while ordinary profit was only ¥35 million. Net loss attributable to owners of the parent was ¥76 million, making it clear that revenue growth did not translate into profit growth. By contrast, the FY2027 company forecast calls for revenue of ¥26,580 million, operating profit of ¥350 million, ordinary profit of ¥300 million and net income attributable to owners of the parent of ¥174 million, implying a recovery in operating profit to approximately 4.8 times the FY2026 level.

Quarterly progress shows that FY2026-Q1 revenue was ¥6,334 million and operating loss was ¥80 million, while first-half revenue was ¥12,966 million and operating loss was ¥92 million. For the nine-month cumulative period, revenue reached ¥19,445 million and operating profit improved to ¥77 million, but full-year operating profit was ¥72 million, meaning that standalone fourth-quarter operating profit barely increased. Accordingly, simply exceeding the prior-year quarter's revenue in FY2027-Q1 will not be sufficient. The key issue is whether operating profit turns positive early in the year and a recovery in margins can be confirmed.

By segment for FY2026, the online reuse business reported revenue of ¥13,183 million and segment profit of ¥1,353 million, the mobile communications business reported revenue of ¥12,953 million and a segment loss of ¥360 million, and the other businesses reported revenue of ¥94 million and a loss of ¥19 million. In addition, adjustments were approximately negative ¥900 million, indicating that profit from the reuse business alone was not sufficient to absorb consolidated fixed costs and adjustment burdens. In FY2027-Q1, the key to consolidated profit recovery will be continued profit growth in reuse, together with narrower mobile losses and the level of adjustments.

Assuming the full-year forecast is distributed evenly across quarters, the mechanical benchmarks are revenue of ¥6,645 million, operating profit of ¥87.5 million, ordinary profit of ¥75 million and net income of ¥43.5 million. However, the company's materials do not provide quantitative information on quarterly seasonality, so these are merely reference benchmarks for monitoring and are not company guidance. In the next earnings release, revenue, gross margin, SG&A ratio, mobile segment profit or loss, and adjustments should be reviewed together to determine whether the profit recovery is temporary or in line with the FY2027 plan.