3Q results exceeded the full-year earnings forecast, with the quality of 4Q revenue and earnings now in focus

Revenue for the 3Q cumulative period of the fiscal year ending September 2026 was ¥2,382.774 million, and operating profit was ¥119.135 million. The full-year forecasts revised in August were revenue of ¥3,000 million, operating profit of ¥100 million, ordinary profit of ¥450 million, and net profit of ¥320 million, giving progress rates of 79.4%, 119.1%, 106.4%, and 110.6%, respectively, at 3Q. Revenue was approximately 4.4 percentage points above the 75% benchmark for the end of the nine-month period, while operating profit, ordinary profit, and net profit had already exceeded their full-year forecasts.

Simply subtracting the cumulative figures gives required 4Q revenue of ¥617.226 million. Operating profit was already ¥19.135 million above the full-year forecast at 3Q, so 4Q operating profit could be as low as a ¥19.135 million loss while still reaching the full-year forecast of ¥100 million. This is only the mechanical amount remaining to achieve the full-year forecast, however, and does not mean the company is planning for a 4Q loss. At the FY2026 results, standalone 4Q revenue, operating profit, and ordinary profit should be separated from the cumulative figures to determine whether the earnings outperformance continued or was brought forward into the period through 3Q.

On a standalone quarterly basis, 1Q revenue was approximately ¥704 million and operating profit approximately ¥5 million. Based on the difference between cumulative figures, standalone 2Q revenue was approximately ¥947.8 million and operating profit approximately ¥83.0 million, while standalone 3Q revenue was approximately ¥731.0 million and operating profit approximately ¥31.1 million. Standalone 3Q revenue and operating profit were below standalone 2Q levels, so the momentum in 4Q cannot be judged from cumulative progress alone. At the next results, it will be necessary to determine, by measures such as volume, contracts, and project deliveries, which revenue from the corporate business, advertising, and software projects can be repeated in 4Q.

The earnings forecast itself was revised in 3Q, but the information currently available does not present the pre-revision revenue, operating profit, ordinary profit, and net profit in a form that allows an item-by-item comparison. Accordingly, at the FY2026 results it will be important to review not only the final results but also the achievement rates against the revised forecasts, the changes from the pre-revision forecasts, and the contribution of 4Q revenue and profit. In particular, if operating profit substantially exceeds ¥100 million, it will be necessary to distinguish whether the increase reflects improved profitability in the route-search business or an improvement in core operations excluding non-operating income.