The company returned to profitability in H1, but accelerating sales in H2 is needed to meet the full-year revenue target

FY2026-H1 revenue was ¥2,642.864 million, up 12.0% from ¥2,360.312 million in the same period of the previous year. Operating profit turned from a loss of ¥29.010 million in the same period of the previous year to a profit of ¥89.661 million. Ordinary profit was ¥89.197 million, while interim net income attributable to owners of the parent was ¥41.429 million. The previous year had recorded an ordinary loss of ¥33.457 million and an interim net loss of ¥38.901 million, respectively, indicating clear improvement in H1 not only in revenue but also in profitability.

However, H1 revenue represented 44.8% of the full-year revenue forecast of ¥5,900 million, approximately 5.2 percentage points below the 50% mark for the elapsed period. On a simple calculation, standalone Q3 revenue of approximately ¥1,782 million would be needed to reach cumulative revenue of ¥4,425 million, equivalent to 75% progress. The company explains that its stock-based business has seasonality, with revenue weighted toward the second half as ARR accumulates, and that H1 progress of 45% is within expectations. At the next results announcement, however, it will be important to determine whether this seasonality is actually translating into accelerating revenue.

Operating profit of ¥89.661 million in H1 has already exceeded the full-year forecast of ¥50 million. Standalone Q2 revenue was approximately ¥1,374 million and operating profit approximately ¥84 million, meaning that most of H1 profit was recorded in the second quarter. The company has nevertheless maintained its full-year forecast, citing expenses associated with investment in the product platform in H2 and the need to assess order conditions in light of development progress. In Q3, we will assess both operating profit and SG&A expenses to determine whether the current outperformance of the profit forecast continues or operating profit slows as investment expenses increase.