For FY2026, containing the loss in the final quarter is key to meeting the full-year forecast

For the first 2 quarters of the fiscal year ending August 2026, revenue was ¥828 million, down 13.5% year on year, while the operating loss was ¥309 million, the ordinary loss was ¥311 million, and the net loss attributable to owners of the parent was ¥268 million. For the first 3 quarters, revenue accumulated to ¥1,220 million, but was down 14.2% year on year, while the operating loss was ¥396 million, the ordinary loss was ¥400 million, and the net loss attributable to owners of the parent was ¥353 million. Both revenue and earnings therefore continued to trend poorly.

The initial full-year forecast for FY2026 was revenue of ¥2,163 million, an operating loss of ¥294 million, an ordinary loss of ¥300 million, and a net loss attributable to owners of the parent of ¥302 million. On 3 June, this was revised downward to revenue of ¥1,650 million, an operating loss of ¥495 million, an ordinary loss of ¥500 million, and a net loss of ¥587 million. The ¥396 million operating loss for the first 3 quarters had already reached approximately 80% of the revised full-year operating loss forecast, meaning that losses were progressing faster than revenue toward the full-year forecast.

To simply achieve the revised full-year forecast, the company will need revenue of ¥430 million in the final quarter. In operating income or loss, the additional operating loss in the final quarter must be limited to ¥99 million or less, while the additional ordinary loss must also be kept within ¥100 million. For net income or loss, the calculation implies an additional loss of ¥234 million in the final quarter, taking the loss from ¥353 million for the first 3 quarters to the full-year forecast loss of ¥587 million. Accordingly, the extent to which costs related to the Data and Technology business, shareholder benefit expenses, relocation-related expenses and other costs remain in the final quarter will be important, in addition to revenue.

At the next full-year results announcement, it will be necessary to check not only whether the full-year forecast was met, but also whether standalone revenue and operating income or loss for the final quarter can be disclosed. The third-quarter financial summary does not provide figures for operating or investing cash flow, so the extent to which the loss-making income statement placed pressure on cash resources will also be an issue to confirm in the full-year results.