Q1 operating loss, full-year outlook unchanged, with assumptions to be tested in H1

The consolidated revenue for the first quarter of the fiscal year ending March 2027, covering April to June 2026, was ¥886.06 million, while the operating loss was ¥51.84 million. Ordinary income was ¥18.14 million and net income attributable to owners of the parent was ¥7.84 million, meaning that the company secured profits at the lower levels of the income statement despite an operating loss. The company left its full-year forecasts unchanged at revenue of ¥4.34 billion, operating income of ¥175 million, ordinary income of ¥253 million and net income of ¥165 million. Q1 revenue represents a simple 20.4% of the full-year forecast.

For operating income, Q1 recorded a loss of ¥51.84 million against the full-year forecast of ¥175 million. Maintaining the forecast therefore requires cumulative operating income of ¥226.84 million over the remaining 3 quarters. This is an arithmetic requirement based on the assumption that the forecast remains unchanged, not a quarterly plan provided by the company. FY2026 full-year results were revenue of ¥4.13184 billion and operating income of ¥169.81 million, so the FY2027 full-year forecast represents growth of only 5.0% in revenue and 3.1% in operating income. In H1, it will be necessary to assess not only whether revenue exceeds the year-earlier level, but also whether the company can stay on track for this modest full-year profit growth while maintaining its margins.

FY2026-H1 results were revenue of ¥1.993 billion and operating income of ¥80 million. FY2027-H1 can be assessed against these comparable consolidated results to measure the degree of recovery from Q1. However, no consolidated financial statements were prepared for the prior-year first quarter, so no year-on-year comparison for FY2027-Q1 alone has been disclosed. This comparability constraint is expected to be less significant in H1, although disclosure including year-on-year comparisons by segment will be necessary.

Q1 ordinary income was ¥18.14 million against an operating loss of ¥51.84 million, a difference of ¥69.98 million between operating income and ordinary income. The company explained that non-operating income contributed, but did not provide the amounts or recurring nature of the individual items. In H1, in addition to cumulative revenue and operating income, it will be important to review the breakdown of non-operating income and expenses, whether the full-year forecast is revised, and progress by segment, in order to determine whether the recovery in operating income is being driven by the core business.