The FY2027 plan assumes strong earnings growth, with Q1 set to confirm the initial phase of profit recovery.

FY2026 revenue increased 4.3% year on year to ¥8,533 million, while operating profit declined 30.5% to ¥522 million and profit attributable to owners of the parent declined 63.2% to ¥361 million. The operating margin calculated from FY2025 operating profit of ¥751 million and revenue of ¥8,179 million was approximately 9.2%, but it fell to approximately 6.1% in FY2026, meaning that higher revenue did not translate into earnings growth.

The initial full-year forecast for FY2026 was revenue of ¥8,800 million and operating profit of ¥630 million, against which actual progress was 97.0% for revenue and 83.0% for operating profit. The company attributed the revenue performance mainly to strong conditions in the TCG market and the profit decline mainly to the lapping of large orders received by the DX business in the previous fiscal year, but it has not provided sufficient bridges quantifying the individual factors or the reductions by expense category.

For FY2027, the company expects revenue of ¥10,100 million and operating profit of ¥850 million, requiring growth of 18.4% in revenue and 62.6% in operating profit from FY2026 actual results. The planned operating margin is approximately 8.4%, assuming an improvement of approximately 2.3 percentage points from the previous fiscal year. In the next Q1, we will check not only simple revenue growth but also whether the impact of the large-order reversal in DX has run its course, whether growth in monthly recurring revenue is improving gross margins, and whether the company can absorb increases in SG&A and personnel expenses.