Demonstrating margin recovery toward ¥650 million in operating profit for FY2027

In FY2026, revenue increased 6.8% year on year to ¥4,393 million, while operating profit fell 44.6% to ¥354 million. The operating margin declined 7.5 percentage points, from 15.6% in the previous fiscal year to 8.1%. The company attributed the decline in profit to development and investment in AI features and new products, as well as advertising expenses, indicating a period in which revenue growth did not translate directly into profit growth.

For FY2027, the company forecasts revenue of ¥4,734 million, operating profit of ¥650 million, ordinary profit of ¥652 million and net income attributable to owners of the parent of ¥484 million. Operating profit is expected to increase 83.3% from the FY2026 result, with an assumed operating margin of 13.7%. In the first quarter, revenue was ¥1,147 million and operating profit was ¥151 million, up 7.6% and 26.7%, respectively, year on year. The operating margin also recovered to 13.2%. Progress against the full-year revenue and operating profit forecasts was approximately 24.2% and 23.2%, respectively.

In FY2027-H1, the key questions are not simply whether operating profit exceeded the year-earlier level, but whether cumulative profit is progressing toward a level equivalent to half of the full-year plan and whether the first-quarter operating margin of 13.2% resulted from temporary cost reductions. First-quarter materials state that revenue was in line with the initial plan and that operating profit and ordinary profit exceeded plan, but quarterly cash flow and profit by service have not been disclosed. In the first-half results, it will be important to separate the effects of revenue growth, advertising expenses, personnel expenses, communications expenses and the impact of liquidating overseas operations, and to confirm the reasons for maintaining or revising the full-year forecasts.