Losses persist despite higher revenue, increasing uncertainty over achieving the FY2026 full-year earnings forecast.

Revenue for the cumulative third quarter of the FY2026 fiscal year ending September was ¥1,016 million, representing progress of 77.7% against the full-year forecast of ¥1,308 million. The third-quarter earnings presentation also described revenue as progressing steadily. However, the operating loss was ¥381 million, the ordinary loss was ¥413 million, and the net loss attributable to owners of the parent was ¥530 million, leaving little margin against the full-year earnings forecast.

Compared with the same period of the previous fiscal year, revenue increased from ¥759 million to ¥1,016 million, but the operating loss widened by ¥47 million, from ¥334 million to ¥381 million. The increase in revenue has not translated directly into improved operating earnings, and the cost burden associated with expanding the trading card business, the contraction of the advertising business, and the start-up costs of other businesses may be weighing on company-wide earnings. The operating margin improved from approximately negative 44.0% in the same period of the previous fiscal year to approximately negative 37.5% in the current period, but remains deeply negative.

To achieve the full-year forecast on a simple run-rate basis, fourth-quarter revenue of ¥292 million is required. For operating earnings, keeping the fourth-quarter loss to ¥105 million or less would bring the full-year operating loss within the forecast of ¥486 million. On a net earnings basis, however, the cumulative third-quarter net loss of ¥530 million already exceeds the full-year forecast of ¥502 million by ¥28 million. The company therefore needs to record net income of at least ¥28 million in the fourth quarter to reach the current forecast.

In the cumulative third quarter, the company recorded total extraordinary losses of ¥139.297 million, including ¥94.5 million in provision for doubtful accounts, ¥36.116 million in losses on redemption of convertible bonds, ¥7.837 million in losses on the sale of shares in a subsidiary, and ¥0.843 million in losses on disposal of fixed assets. In the next results, it will be necessary to check whether these one-off losses recur in the fourth quarter, whether higher revenue from the trading card business can absorb company-wide fixed costs and extraordinary losses, and whether the company can maintain its forecast after the financing facility is released.