Q1 revenue reached 23.7% of the full-year forecast, but a return to profitability in H1 is needed to meet the full-year operating profit target

For the first quarter of the fiscal year ending February 2027, revenue was ¥386.407 million, operating loss was ¥5.355 million and ordinary loss was ¥7.873 million. Net income attributable to owners of the parent, however, was ¥3.855 million, meaning that the company was profitable at the bottom line despite losses at the operating and ordinary-profit levels. No extraordinary gains or extraordinary losses were recorded in Q1. It is therefore too early to conclude that the profitability of the core business has improved based solely on the bottom-line profit.

Revenue of ¥386.407 million represented 23.7% of the ¥1,632 million full-year forecast. This was approximately 1.3 percentage points below the 25.0% implied by a simple assumption of even quarterly revenue recognition, although the company has not disclosed seasonality or a specific quarterly operating plan. Rather than concluding that performance is trending below target based solely on the progress rate, it will be necessary to confirm whether cumulative H1 revenue reaches ¥816.0 million, or 50.0% of the full-year forecast, and which businesses generated H1 revenue on a segment-by-segment basis.

On the earnings side, the company reported a Q1 operating loss of ¥5.355 million against a full-year operating profit forecast of ¥100 million. This implies that it must generate ¥105.355 million in operating profit over the remaining 9 months. The focus will be not only on whether cumulative H1 results return to profitability, but also on whether the company can offset the loss in Q2 alone. The full-year forecasts of ¥88 million in ordinary profit and ¥58 million in net income have also been maintained, so the H1 results should be assessed across all profit levels, including non-operating income and expenses and taxes, rather than operating profit alone.

The company attributed Q1 performance to contributions from AIStep and Zealox, which were brought into the scope of consolidation in the previous consolidated fiscal year, as well as the standardization of sales processes, the launch of new features and improvements to existing services. However, it has not disclosed the revenue or profit contribution of each factor. In FY2027-H1, it will be important to see whether the company provides a breakdown between growth in the existing business and contributions from the subsidiaries, discloses quarterly operating profit, and gives its own assessment of progress against the full-year plan.