The first half is on track with the full-year plan, but delivering the second-half buildup is the next focus

Revenue in the first half of FY2026 was ¥1,096 million, up 36.5% year on year, while operating profit was ¥261 million, up 16.3%. Ordinary profit also increased 13.1% to ¥253 million, while interim net profit attributable to owners of the parent declined 1.9% to ¥143 million. Progress against the full-year plans for revenue, operating profit and adjusted EBITA was 47.1%, 47.4% and 48.6%, respectively, and the company said it was progressing in line with plan at the half-year stage.

A simple calculation based on first-half results indicates that achieving the full-year forecasts will require the company to record approximately ¥1,234 million in additional revenue, ¥289 million in operating profit and ¥175 million in net profit in the second half. However, the company describes its business as a subscription-based, recurring-revenue model in which revenue and profit build in the second half. Rather than evaluating performance mechanically based solely on whether it has reached 75% at the 9-month point, it is necessary to assess the extent to which price revisions, increased licenses, municipal projects and subsidiary contributions were recognized in the third quarter.

Compared with the same period of the previous year, revenue growth exceeded operating profit growth by 20.2 percentage points. The first-half operating margin was 23.8%, down 4.2 percentage points year on year, indicating that revenue growth has not translated directly into profit growth. In the third quarter, it will be important to see whether, in addition to 9-month cumulative revenue, operating profit and adjusted EBITA, the company discloses results for the quarter alone, the increase in MRR attributable to price revisions and profit contributions by service.

There was no revision to the full-year earnings forecasts at the half-year stage. The forecasts remain revenue of ¥2,330 million, operating profit of ¥550 million, ordinary profit of ¥540 million and net profit of ¥318 million. At the next results announcement, we will assess whether the company maintains these forecasts or revises them upward or downward, while also tracking whether quantitative information such as business opportunities, contracts and license counts is added to support the second-half buildup in revenue and profit.