The recovery phase, in which profit is growing despite lower revenue, will be tested for sustainability in FY2026-Q3

FY2026-H1 consolidated revenue was ¥1,949.5 million, down ¥363.5 million from ¥2,313.0 million in the same period of the previous year. Operating profit, meanwhile, increased by ¥55.8 million from ¥26.9 million to ¥82.7 million, up 206.9% year on year. Ordinary profit was ¥83.2 million, up 445.3%, while interim net profit attributable to owners of the parent turned around from a ¥5.5 million loss in the same period of the previous year to a profit of ¥41.3 million.

The improvement in margins was also substantial. The operating margin rose approximately 3.08 percentage points, from approximately 1.17% in the same period of the previous year to approximately 4.24% in the current interim period. The interim results presentation showed an operating profit bridge comprising a ¥52 million increase from the DX business, a ¥10 million increase from the platform business and ¥6 million in negative factors from Other. No material impairment losses on fixed assets or uplift from extraordinary gains or losses have been identified. Based on the disclosures, at least, improvements in project profitability and the cost structure were the main drivers of the increase in profit.

The full-year plan remains unchanged at revenue of ¥4,500 million, operating profit of ¥120 million, ordinary profit of ¥119 million and net profit attributable to owners of the parent of ¥40 million. At the H1 stage, progress was 43.3% for revenue, compared with 68.9% for operating profit, 69.9% for ordinary profit and 103.2% for net profit. Profit is therefore progressing faster than planned, while revenue remains below the 50% mark implied by a simple time apportionment. The company has indicated that it plans to make investments, including in hiring, in the second half, but has not disclosed the investment amount, number of hires or quarterly revenue and profit assumptions.

Accordingly, the focus in FY2026-Q3 will be whether high margins can continue without a recovery in revenue, or whether second-half hiring investment will lower margins as the company shifts toward growth investment. If cumulative 3Q operating profit reaches ¥90 million, 75% of the full-year plan will have been secured. However, if revenue remains below ¥3,375 million, it will be necessary to determine whether achievement of the profit target depends on project selection or cost controls.