An exceptional fourth-quarter recovery is needed to meet the FY26 full-year forecast

Revenue for the nine months of FY26 was ¥1,338 million, down 3.0% from ¥1,379 million in the same period a year earlier. Operating results swung from operating profit of ¥132 million in the year-earlier period to an operating loss of ¥29 million, while ordinary results also turned to a loss of ¥35 million and net income attributable to owners of the parent was a loss of ¥40 million. Profit deteriorated much more sharply than revenue, indicating that progress reflects deteriorating profitability rather than merely a temporary fluctuation in sales.

The company has maintained its FY26 full-year forecast of ¥2,025 million in revenue, ¥60 million in operating profit, ¥49 million in ordinary profit and ¥41 million in net income attributable to owners of the parent. Revenue progress for the nine months was approximately 66.1%, around 8.9 percentage points below the simple time-based progress rate of 75% after nine months. Since operating results were ¥29 million in the red for the nine-month period, achieving the ¥60 million operating profit forecast requires operating profit of ¥89 million in the fourth quarter alone.

Revenue also needs to increase by ¥687 million over the remaining 3 months. This is approximately ¥255 million, or about 59%, above standalone third-quarter revenue of ¥432 million, a recovery that is difficult to explain by seasonality alone. The standalone third-quarter operating loss was ¥32 million. Turning this into operating profit of ¥89 million will require confirmation not only of a sales recovery but also of improved gross margin, the absence of further effects from the system outage and cost controls at the same time.

At the next results announcement, the focus should be not only on whether the full-year forecast was achieved but also on standalone fourth-quarter revenue, gross profit and operating profit. Particular attention should be paid to a recovery in the e-commerce support business, growth in the fintech business, whether additional system outage-related costs are recorded and whether the full-year forecast is revised. If fourth-quarter revenue falls below ¥687 million or operating profit fails to reach ¥89 million, the likelihood of missing the FY26 forecast will increase.