FY2027 fiscal year ending June is expected to combine revenue growth with a lower profit margin

In the fiscal year ended June 2026, revenue was ¥5,343 million and operating profit was ¥2,196 million, securing revenue and profit growth from the previous year’s revenue of ¥4,581 million and operating profit of ¥1,971 million. However, the operating margin declined 1.9 percentage points, from approximately 43.0% to 41.1%. Since revenue growth of 16.6% exceeded operating profit growth of 11.4%, part of the revenue expansion continued to be offset by higher costs such as sales promotion, research and development, and communications.

The company’s forecast for the fiscal year ending June 2027 is revenue of ¥6,081 million, operating profit of ¥2,149 million, ordinary profit of ¥2,179 million and net profit of ¥1,503 million. Revenue is expected to rise 13.8% year on year, while operating profit is expected to fall ¥47 million, or 2.1%; ordinary profit is expected to decline 1.5%, and net profit 8.0%. Operating profit as a percentage of forecast revenue is approximately 35.3%, a planned decline of approximately 5.8 percentage points from 41.1% in the fiscal year ended June 2026. The plan therefore assumes that growth investment in the next fiscal year will place a clear burden on the profit margin.

FY2026-Q1 results were revenue of ¥1,267 million and operating profit of ¥616 million. The first test in FY2027-Q1 will be whether revenue and operating profit can exceed these year-earlier levels. However, because the full-year forecast is not disclosed by quarter, it should not be assessed solely on the basis of a simple 25% progress rate. The timing of costs associated with the expanding use of generative AI services and whether the quarterly operating margin is approaching the full-year assumption in the mid-35% range should also be considered.

At the next results announcement, we will examine the impact of increased generative AI usage, AI-system hardware prices, foreign exchange and communications costs on revenue, operating profit and the operating margin. For the fiscal year ended June 2026, extraordinary income of ¥100 million was recorded, while the factors behind changes in operating profit were explained only qualitatively. As FY2026-Q1 revenue was ¥1,267 million and operating profit was ¥616 million, the next results should break down year-on-year changes in sales promotion, research and development, communications and depreciation costs to determine whether the operating margin is declining further toward the full-year plan in the mid-35% range or has begun to recover.