Can revenue from projects recognized from Q2 onward make up for the substantial Q1 loss?

Revenue for the first quarter of the fiscal year ending March 2027 was ¥369.538 million, down 12.1% year on year. The operating loss was ¥106.348 million, the ordinary loss was ¥107.687 million, and the net loss attributable to owners of the parent was ¥98.785 million, leaving losses at every profit level. Q1 progress against the revised full-year revenue forecast of ¥3,301 million was approximately 11.2%, meaning that, on a simple comparison, the company would need to build up more than ¥2,931 million from Q2 onward to achieve the annual plan.

The company, however, assessed first-quarter results as being “within the scope of the Q1 plan” and said that flow revenue was also within its internal plan. Its explanation that most orders, acceptances and revenue recognition are expected from Q2 onward is consistent with the company’s longstanding seasonality, in which results are concentrated in Q4. In FY2024, for example, Q4 revenue was ¥505.599 million against full-year revenue of ¥1,767.655 million, meaning that Q4 alone accounted for approximately 28.6% of the full-year total. In FY2025, Q4 revenue was ¥626.301 million against full-year revenue of ¥2,010.575 million, with approximately 31.1% concentrated in Q4.

The company did not disclose specific order backlogs or quarterly targets for Q2 onward in the latest Q&A. Accordingly, the key points to verify in FY2027-H1 are not simply the explanation of a “second-half concentration,” but the amount of projects that actually moved from orders and acceptance into revenue, as well as the extent of the recovery in flow revenue. Prior-year FY2026-H1 revenue was ¥884.898 million and the operating loss was ¥112.046 million, so the initial benchmarks should be whether H1 revenue exceeds this level and whether the operating loss narrows. It will also be necessary to confirm whether the full-year forecasts of ¥3,301 million in revenue and ¥183 million in operating profit are maintained or revised again.