A sharp recovery in fourth-quarter profit is needed to meet the FY2026 full-year forecast

Nine-month operating revenue rose 4.8% year on year to ¥2.8266 billion, while operating profit fell 50.4% to ¥192.9 million, ordinary profit fell 52.8% to ¥177.9 million, and net income attributable to owners of the parent fell 68.6% to ¥80.7 million. Revenue growth alone has not been enough to maintain profit levels, so the FY2026 year-end results will need to distinguish between the quality of revenue growth and the cost structure.

Following the earnings forecast revision dated 2 November, full-year operating revenue is forecast at ¥4,190 million, operating profit at ¥380 million, net income attributable to owners of the parent at ¥210 million, and earnings per share at ¥86.19. Progress against the nine-month results was approximately 67.4% for operating revenue, 50.8% for operating profit, and 38.4% for net income. Accordingly, meeting the revised forecast will require approximately ¥1,363 million of operating revenue, ¥187 million of operating profit, and ¥129 million of net income in the fourth quarter.

These required amounts are also a high hurdle compared with the fourth quarter of the previous year. FY2025 full-year operating revenue of ¥3.592 billion less nine-month operating revenue of ¥2.6982 billion implies fourth-quarter revenue of approximately ¥894 million. The corresponding calculation for operating profit, based on full-year operating profit of ¥503 million and nine-month operating profit of ¥389.1 million, implies approximately ¥114 million. The revised forecast therefore requires fourth-quarter revenue approximately 52% higher and operating profit approximately 64% higher than in the previous year’s fourth quarter.

The company identifies the consolidation of シンエイ and LIGコーポレーション as subsidiaries, improvements to existing services, and better advertising efficiency as growth drivers. However, the third-quarter profit includes acquisition-related expenses, and the extent to which the acquired companies’ earnings will contribute in the final quarter, as well as the underlying profit improvement excluding one-off expenses, has not yet been sufficiently broken down in monetary terms. The year-end results will be reviewed for standalone fourth-quarter revenue and operating profit, the contributions of existing and newly consolidated businesses before and after the acquisition, and disclosure of the FY2027 forecast.