The focus for achieving full-year profitability in FY2027 is execution weighted toward the second half

In FY2026 Q4, revenue was approximately ¥379 million and operating profit was ¥17.714 million, marking the first quarterly operating profit in five years. In FY2027 Q1, however, revenue was ¥213.871 million, up 37.0% year on year, and the gross margin improved to 44.0%, but the company posted an operating loss of ¥14.781 million. The prior quarter's profitability did not continue unchanged, and fluctuations in quarterly project recognition timing and expense incurrence remain significant.

The company's FY2027 full-year forecast is revenue of ¥1,500–1,600 million and operating profit of ¥30–40 million. Q1 revenue progress was limited to approximately 13–14%, but the company explained that its plan is weighted toward the second half, with hardware and new-business projects concentrated in that period. Simply subtracting Q1 actuals from the full-year forecast implies that revenue of ¥1,286.1–1,386.1 million and operating profit of ¥44.8–54.8 million must be generated over the remaining three quarters. This is a mechanical difference that does not account for seasonality, however, so the key issue at the next results announcement will be whether the order intake, delivery and revenue recognition timing of second-half projects support this assumption.

Q1 revenue by business was ¥169 million for Software, ¥12 million for Solutions and ¥33 million for Hardware. The Software business posted operating profit of ¥7.6 million, while the Solutions and Hardware businesses were loss-making due to upfront investment and projects shifting between periods; the loss amounts for the two businesses were not disclosed. For FY2026, revenue from Solutions had expanded to ¥265.549 million and revenue from Hardware to ¥319.793 million. The next results should therefore be assessed not only for further revenue growth, but also for whether both businesses reduced their operating losses or became profitable.

At the end of FY2026, the company explicitly stated that it aimed to achieve full-year operating profitability in the following fiscal year and eliminate the note concerning material uncertainty related to the going concern assumption. Accordingly, although profitability in FY2027 H1 itself has not been disclosed as a formal half-year target, the main issues in assessing the credibility of full-year profitability will be the extent to which cumulative operating losses have narrowed year on year, whether the ¥30–40 million full-year forecast can be maintained, and whether the large projects, GPU cloud and new-business revenue scheduled for recognition in the second half are taking concrete shape.