FY2027 ending June is planned to deliver higher revenue and profit, but the focus is on recovery in the operating margin

Revenue for FY2026 ending June was ¥33.204 billion, up 14.9% year on year. Operating profit was ¥1.79 billion, down 29.1%, ordinary profit was ¥1.809 billion, down 24.6%, and net income attributable to owners of the parent was ¥796 million, down 41.3%. The operating margin fell 3.3 percentage points from 8.7% in the previous fiscal year to 5.4%, making the fact that higher revenue has not translated directly into profit growth the most important point to verify in FY2027-Q1.

By segment, the Digital Marketing business generated revenue of ¥16.67 billion and segment profit of ¥1.03 billion, increases of 33.1% and 14.4%, respectively, from the same period last year. The Research & Insights business generated revenue of ¥16.534 billion, up just 1.0%, while segment profit declined 19.8% to ¥3.067 billion. The decline in the group-wide margin appears to have resulted from both the higher revenue mix of the lower-margin Digital Marketing business and deterioration in the Research & Insights business's margin.

For FY2027 ending June, the company forecasts revenue of ¥40 billion, operating profit of ¥2.5 billion, ordinary profit of ¥2.5 billion, and net income attributable to owners of the parent of ¥1.3 billion. The operating profit forecast is 39.7% above FY2026 actual results, implying an operating margin of approximately 6.3%. Accordingly, FY2027-Q1 must provide evidence of at least one of improved gross margins, controlled SG&A growth, or a recovery in the Research & Insights business, rather than growth resulting solely from an expanded consolidation scope.

In FY2026-Q1, revenue was ¥6.708 billion and operating profit was ¥286 million. For FY2027-Q1, these figures should serve as the short-term benchmark for determining whether the company can at least exceed the prior-year levels. In addition, it will be necessary to check whether the company discloses segment revenue and profit, gross margin, and the factors behind changes in SG&A, in order to distinguish between quarterly profit growth driven by one-off project recognition or consolidation effects and a recovery accompanied by improved margins.