Q1 progress against the FY2027 full-year forecast: 20.3% of revenue and 2.1% of operating profit

FY2027-Q1 revenue was ¥296.664 million, operating profit was ¥3.202 million, ordinary profit was ¥5.638 million, and net profit attributable to owners of the parent was ¥45.070 million. The full-year forecast is revenue of ¥1,460 million, operating profit of ¥150 million, ordinary profit of ¥150 million, and net profit of ¥110 million, representing progress rates of 20.3% for revenue, 2.1% for operating profit, 3.8% for ordinary profit, and 41.0% for net profit. Revenue was 4.7 percentage points below the simple quarterly benchmark of 25%, while operating profit progress was even lower.

To meet the full-year forecast, the company must generate an additional ¥1,163.336 million in revenue, ¥146.798 million in operating profit, ¥144.362 million in ordinary profit, and ¥64.930 million in net profit from Q2 onward. In particular, operating profit would need to be approximately 46.0 times Q1's result over the remaining period. It is therefore necessary to confirm whether margins are improving on an H1 cumulative basis and whether the plan assumes that large projects or earnings contributions will be concentrated in the second half. Even if revenue approaches plan, failure of operating profit to follow would reduce the likelihood of achieving the full-year earnings forecast.

The company attributed Q1 performance to growth in its online identity verification service, a stable contribution from the advertising and media business, and limited fund distribution income in the investment-related business. However, Q1 net profit of ¥45.070 million included a ¥39.001 million gain on the sale of investment securities, so the 41.0% progress rate for net profit cannot be equated with progress in operating activities. In the next results, operating profit, ordinary profit, and net profit should be disclosed separately on an H1 cumulative basis, allowing the accumulation of profit excluding extraordinary income to be assessed.

The fiscal year ending March 2026 comprised 15 months, while the fiscal year ending March 2027 comprises 12 months, making year-on-year and period-on-period comparisons impossible. The Q1 financial results summary also did not disclose year-on-year comparisons, so a comparison of the operating margin was not possible. In the next results, it will be important to show the increase from Q1 to Q2, the cumulative progress rate against the full-year forecast, the margin of the DX cloud business, and distribution income from the investment-related business as alternatives to year-on-year comparisons when assessing the underlying performance.