Achieving the full-year forecast requires a sharp recovery in sales in the second half and an end to the expansion of the operating loss

First-half revenue for the fiscal year ending December 2026 was ¥268 million, down 58.0% from ¥640 million in the same period a year earlier. Progress against the full-year revenue forecast of ¥858 million was approximately 31.2%, well below the 50% implied by simple time apportionment. The company says its business plan is weighted toward the second half, so the low first-half progress alone does not establish that the full-year target will be missed. However, FY2026-Q3 will need to verify through the figures whether projects have actually begun to be recorded in the second half.

On the earnings front, the first-half operating loss was ¥269 million, the ordinary loss was ¥246 million, and the interim net loss attributable to owners of the parent was ¥255 million. The operating loss has already exceeded the full-year forecast of ¥267 million by approximately ¥2 million. To achieve the full-year forecast mechanically, the company will need to secure approximately ¥2 million in operating profit in the second half, which presupposes at minimum that the operating loss does not expand from the third quarter onward.

For revenue, subtracting first-half actual revenue of ¥268 million from the full-year forecast of ¥858 million leaves approximately ¥590 million required in the second half. The benchmark for cumulative revenue through the third quarter, assuming a simple 75% of the full-year figure, is approximately ¥644 million. This is not the company’s formal quarterly plan, however, but a mechanical benchmark that does not account for the weighting toward the second half. Accordingly, at the next earnings release, we will need to examine not only cumulative figures but also standalone third-quarter revenue, the timing of project recognition and revenue by service, to determine whether the weighting toward the second half is based on the actual order and delivery schedule.

The full-year forecast was also left unchanged in the first-half results, with no specific revision despite the decline in revenue and wider losses. The key points to confirm in FY2026-Q3 will be how much revenue has accumulated, whether the operating loss has expanded further from ¥269 million, and whether the full-year forecasts of ¥858 million in revenue, a ¥267 million operating loss and a ¥291 million net loss are maintained. Even if the earnings forecast is not revised, it will be important to see whether the company discloses orders received, order backlog and project counts supporting the revenue and earnings required for the remaining period.