Q1 revenue recovered, but the operating loss widened; profitability recovery must be demonstrated in FY2027-H1

Revenue for Q1 of the fiscal year ending March 2027 was ¥546 million, up 14.9% from ¥475 million a year earlier. However, the operating loss was ¥310 million, widening by ¥19 million from ¥291 million a year earlier. The ordinary loss and net loss attributable to owners of the parent were both ¥149 million, down from ¥301 million and ¥304 million, respectively, a year earlier, but revenue growth has not translated into a smaller operating loss.

The company’s full-year forecast for the fiscal year ending March 2027 is revenue of ¥2,629 million, an operating loss of ¥630 million, an ordinary loss of ¥458 million and a net loss attributable to owners of the parent of ¥458 million. Q1 revenue progress was 20.8%, making whether revenue can reach the simple half-year benchmark of ¥1,314.5 million in the next results announcement one point to monitor. The operating loss has already reached 49.2% of the full-year forecast, so the Q2 operating loss would need to be extremely small to keep the loss to approximately ¥315 million at the half-year point. This is not the company’s plan, but a progress benchmark calculated by simply dividing the full-year forecast by two.

For the fiscal year ended March 2026, revenue was ¥2,233 million, the operating loss was ¥860 million, the ordinary loss was ¥581 million and the net loss attributable to owners of the parent was ¥591 million. The forecast for the fiscal year ending March 2027 assumes a 17.7% increase in revenue and a reduction in the operating loss to ¥630 million, but the Q1 operating loss is already ¥310 million. Next time, it will be necessary to confirm whether the source of revenue growth is volume, pricing or commissioned projects in the research support business, and how much higher R&D expenses and SG&A expenses reduced operating profit and loss.

The Q1 results disclose revenue and profit or loss by segment, but no explanation was identified that breaks down the reasons for the year-on-year increase in the consolidated operating loss into R&D expenses, common costs, foreign exchange and other expenses. No quarterly cash flow statement was prepared, and there was no supplementary results presentation. Accordingly, in FY2027-H1 it will be important to see whether additional disclosure is provided that allows the sources of the loss to be verified, rather than relying only on the mechanical benchmarks of ¥1,314.5 million in revenue, an operating loss of ¥315 million and an ordinary and net loss of ¥229 million.