Q1 progressed broadly in line with the plan for higher revenue and profit in FY2027

Q1 revenue for the fiscal year ending March 2027 was ¥1,939 million, up 14.1% year on year; operating profit was ¥232 million, up 80.6%; and ordinary profit was ¥259 million, up 92.4%. EBITDA was ¥329 million, while quarterly net income attributable to owners of the parent was ¥169 million. Progress against the full-year revenue forecast of ¥9,100 million was 21.3%, and progress against the ¥1,120 million operating profit forecast was 20.8%, slightly below one-quarter of the full-year level on a standalone quarterly basis.

As of Q1, the company maintained its full-year forecasts of ¥9,100 million in revenue, ¥1,530 million in EBITDA, ¥1,120 million in operating profit, ¥1,110 million in ordinary profit and ¥780 million in net income. Prior-year revenue was ¥7,751 million and operating profit was ¥932 million, so the company is targeting revenue growth of 17.4% and operating profit growth of 20.1% this year. Accordingly, in Q2 it will be important to assess not only year-on-year revenue and profit growth, but also whether cumulative progress against the full-year targets exceeds the first-half benchmarks of ¥4,550 million in revenue and ¥560 million in operating profit.

Q1 operating margin was approximately 12.0%, up from approximately 7.5% in the prior-year quarter. Net income, however, declined 12.1% year on year, reflecting the reversal of a one-off tax effect associated with the prior-year merger. In Q2, in addition to confirming whether the improvement in operating and ordinary profit continues, it will be necessary to assess whether tax effects and the corporate tax burden cause net income to diverge from operating profit progress.

For the second half in particular, the company has indicated that the BPO business assumes the recognition of a large project in Q4, leaving the full-year forecast dependent on the second half, especially Q4. In the Q2 results, cumulative progress rates for revenue and operating profit, any revision to the full-year forecasts, the timing of recognition for the large project and the ongoing level of growth investment should be reviewed together.