FY2027 revenue is expected to increase, but the operating profit plan is flat, making it necessary to assess the quality of growth in Q1

FY2026 revenue was ¥12,285 million, operating profit was ¥1,376 million, ordinary profit was ¥1,400 million, and net income attributable to owners of the parent was ¥956 million. Revenue increased 15.0% year on year and operating profit rose 22.9%, lifting the operating margin to 11.2%. By contrast, the FY2027 company forecast calls for revenue of ¥12,490 million, operating profit of ¥1,355 million, ordinary profit of ¥1,402 million, and net income of ¥900 million. Revenue is expected to increase by approximately 1.7%, while operating profit is projected to decline by approximately 1.6% and net income by approximately 5.9%.

For the nine months ended FY2026-Q3, revenue was ¥9,203 million and operating profit was ¥1,137 million, representing progress rates of 76.7% and 84.2%, respectively, against the full-year forecasts. Since profit progress was ahead of revenue progress, profitability remained solid through the end of FY2026. However, the next reporting period, FY2027-Q1, will be compared with revenue of ¥2,917 million and operating profit of ¥341 million in the year-earlier quarter. It will be necessary to confirm whether the company can secure year-on-year revenue and profit growth and whether the strong profit progress in the nine months ended FY2026-Q3 was non-recurring.

The FY2027 forecast assumes selling, general and administrative expenses will increase from ¥1,551 million in FY2026 to ¥1,635 million. With revenue growth limited, SG&A is expected to rise by ¥84 million, or approximately 5.4%, resulting in a simple operating margin calculation of approximately 10.8%, down from the 11.2% achieved in FY2026. The company has also explained that the tax relief from the wage-increase promotion tax credit applied in FY2026 is not included in the FY2027 plan. The decline in net income may therefore reflect not only the profit plan but also the reversal of the tax benefit.

Accordingly, in FY2027-Q1 it will be important to assess not only whether revenue increased, but also whether the company is absorbing the costs associated with hiring, increasing headcount, using AI, and strengthening its development structure. The current materials do not disclose quarterly budgets for FY2027, a breakdown of SG&A, the amounts spent on recruitment or AI-related investment, or the quarterly profit level required for the remainder of the year. At the next results announcement, we will track whether revenue exceeds ¥2,917 million, operating profit exceeds ¥341 million, and the operating margin remains at least 10%, as well as whether additional explanation is provided of the cost assumptions supporting the full-year operating profit forecast of ¥1,355 million.