Will the pattern of shrinking operating margins despite revenue growth continue?

Revenue in FY2026-H1 was ¥27,241 million, up 8.2% year on year, while operating profit was ¥1,411 million, down 13.5%. The operating margin was approximately 5.2%, about 1.3 percentage points below approximately 6.5% in the same period of the previous year. Adjusted EBITDA also declined 4.5% year on year to ¥2,093 million, indicating that revenue growth has not translated directly into growth in core operating profit.

Looking at the quarterly progression, first-quarter revenue was ¥13,583 million and operating profit was ¥863 million. Revenue increased 2.8% year on year, but operating profit declined 8.9%. Based on the simple difference between the first quarter and the interim period, second-quarter standalone revenue was approximately ¥13,658 million and operating profit approximately ¥548 million, indicating that margins declined further in the second half of the first half. In Q3, the key question is whether standalone quarterly operating profit will turn to year-on-year growth.

The company cites human capital investment, growth investments including generative AI, and M&A-related expenses as factors behind the decline in operating profit. However, as of FY2026-H1, it has not disclosed how many millions of yen were recorded for each expense or how one-time expenses are distinguished from recurring expenses. We need to assess in Q3, based on the expense breakdown and the company's explanation, whether margins will recover once the investment burden subsides or whether personnel and AI investment will become a permanent cost structure.

The full-year revenue forecast is ¥51,500 million, but no full-year operating profit forecast has been disclosed. As a result, progress in revenue alone cannot be used to assess the landing point for core operations, including the investment burden. In Q3, we will check whether the cumulative operating margin exceeds 5.2%, whether the decline in adjusted EBITDA narrows, and whether quantitative explanations of investment-related expenses are added.