A strong start in Q1, but catch-up to the full-year plan is needed in H1

In Q1 of the fiscal year ending March 2027, revenue was ¥2,772 million, operating profit was ¥499 million, ordinary profit was ¥492 million, and net profit attributable to owners of the parent was ¥321 million. Year on year, revenue increased 23.9%, operating profit 41.7%, ordinary profit 54.1%, and net profit 60.9%, with each reaching a record high for a first quarter. Operating profit growth exceeding revenue growth currently indicates growth accompanied by improved profitability.

However, the full-year plan calls for revenue of ¥13,778 million, operating profit of ¥2,939 million, ordinary profit of ¥2,973 million, and net profit of ¥1,998 million. Q1 progress was 20.1% for revenue, 17.0% for operating profit, and 16.1% for net profit, below the 25% elapsed proportion on a calendar-year basis by approximately 4.9 percentage points for revenue, 8.0 points for operating profit, and 8.9 points for net profit. The company describes progress as being in line with the plan, and because the plan incorporates seasonality, it is too early to judge performance as falling short based solely on these progress rates.

If half of the full-year plan is used as a simple H1 benchmark, FY2027-H1 would require revenue of ¥6,889 million and operating profit of ¥1,469.5 million. Calculated backward from Q1 results, the required Q2 standalone amounts would be approximately ¥4,117 million in revenue and ¥971 million in operating profit. These are mechanical calculations that disregard seasonality, not H1 targets disclosed by the company. In the next earnings release, it will be important to see whether the company discloses not only cumulative figures but also Q2 standalone revenue and operating profit and the factors behind their changes.

The Q1 earnings summary did not disclose segment revenue or profit, operating cash flow, or the period-end balance of cash and cash equivalents. The earnings presentation did show revenue and gross profit for the three businesses, so in FY2027-H1 it will be important to assess how much each of the cyber security, security education, and security personnel businesses supported the H1 plan, in addition to the company-wide progress rates. Even if the full-year forecast continues to be maintained, profit progress, whether it catches up with revenue, any forecast revision, and cash generation should be monitored together.