Reassessing Q1 revenue and profit growth against H1 progress toward the plan

For Q1, covering April to June 2026, revenue was ¥879 million, up 15.4% year on year, operating profit was ¥233 million, up 21.1%, ordinary profit was ¥230 million, up 20.0%, and net profit attributable to owners of the parent was ¥152 million, up 19.4%. All major profit measures posted double-digit growth, and the company described Q1 performance as a record high for a first quarter.

On the other hand, revenue progress toward the ¥4,200 million full-year forecast was 20.9%, while operating profit progress toward the ¥1,340 million forecast was 17.4%. Compared with the simple 25% benchmark after three months, revenue was 4.1 percentage points lower and operating profit was 7.6 points lower. Although the company described Q1 progress as low, it assessed performance as “largely in line with the plan,” based on the assumption that solution services revenue is weighted toward the second half.

By service, cloud services revenue was ¥517 million, up 10.8% year on year, solution services revenue was ¥362 million, up 24.0%, and other revenue was ¥4 million, up 53.1%. The full-year plan calls for ¥2,090 million from cloud services, ¥2,102 million from solution services, and ¥14 million from other activities, implying Q1 progress of 24.7%, 17.3%, and 27.7%, respectively. The lower progress of solution services than consolidated revenue overall may also have contributed to the delay in profit progress.

For the next H1 results, revenue of ¥2,100 million, operating profit of ¥670 million, ordinary profit of ¥665 million, and net profit of ¥445 million will be used as mechanical reference levels equivalent to 50% of the full-year plan. These are not H1 targets set by the company, but merely benchmarks obtained by dividing the full-year forecasts in half. Based on Q1 results, an additional ¥1,221 million in revenue and ¥437 million in operating profit will be required by the end of Q2. Along with cumulative H1 results, we will check whether the full-year forecasts of ¥4,200 million in revenue and ¥1,340 million in operating profit, as well as the annual dividend of ¥32, are maintained or revised.