Revenue grew, but profit recovery fell short, leaving the full-year plan dependent on a sharp recovery in the second half

Revenue for January-June FY2026 was ¥2,930.661 million, up 2.4% from ¥2,861.347 million in the same period last year. However, operating profit fell 39.5% to ¥30.184 million from ¥49.916 million, while ordinary profit was only ¥28.702 million. The interim net loss attributable to owners of the parent was ¥12.637 million, a swing from the ¥20.871 million profit recorded in the same period last year.

The deterioration in margins is clear. The operating margin fell approximately 0.71 percentage points, from about 1.74% in the same period last year to about 1.03%. As operating profit declined despite higher revenue, FY2026-Q3 requires a review not only of revenue scale but also of selling, general and administrative expenses, payment-related costs and the extent to which upfront investment is being absorbed. The company did not disclose standalone results for the three-month interim period, which also makes it difficult to assess the pace of improvement quarter by quarter.

The latest full-year forecast is revenue of ¥6,187 million, operating profit of ¥81 million, ordinary profit of ¥89 million and net profit attributable to owners of the parent of ¥12 million. After deducting interim results, achieving the full-year forecast requires H2 revenue of ¥3,256.339 million, operating profit of ¥50.816 million and profit attributable to owners of the parent of ¥24.637 million. Operating profit in H2 must substantially exceed the ¥30.184 million recorded through the interim period, making the extent of recovery in cumulative Q3 results the most important checkpoint.

The company attributed the decline in profit to fewer recurring-paying users in its magazine sales support business, higher selling, general and administrative expenses, personnel costs, marketing, SEO and upfront investment in new businesses. In FY2026-Q3, these costs should be assessed by expense category to determine whether they are temporary or structural factors that will continue to hold the operating margin around 1%.