FY2027's high profit growth target enters the validation phase from Q1

FY2026 ended with revenue of ¥2,045.9 million, operating profit of ¥442.2 million, ordinary profit of ¥447.8 million and net income of ¥318.0 million. Revenue increased 24.9% year on year, but operating profit growth was limited to 7.5%. By contrast, FY2027 forecasts call for revenue of ¥2,450 million, operating profit of ¥620 million, ordinary profit of ¥620 million and net income of ¥420 million. This represents a plan in which operating profit growth of 40.2% will substantially exceed revenue growth of 19.8%.

First-quarter results for the fiscal year ending May 2026 were revenue of ¥469 million, operating profit of ¥108 million, ordinary profit of ¥109 million and net income of ¥73 million. Using the previous year's first quarter as the comparison base, mechanically applying FY2027's annual forecast growth rates to a quarter produces indicative figures of approximately ¥562 million in revenue and ¥151 million in operating profit. However, these are mechanical calculations, not quarterly targets provided by the company, and do not take into account seasonality in the education services business or the timing of campaigns. In the actual Q1 results, it will be necessary to assess not only whether these indicative figures were achieved, but also progress in acquiring members and selling to corporate customers, which underpin the full-year forecasts.

In FY2026, cumulative nine-month revenue was ¥1,488 million and operating profit was ¥317 million. Against the full-year forecasts at that time of ¥2,040 million and ¥435 million, progress rates were approximately 73.0% and 72.9%, respectively. Full-year actual results subsequently came to ¥2,045.9 million in revenue and ¥442.2 million in operating profit. The fourth quarter alone also produced revenue of ¥557.6 million and operating profit of ¥124.9 million, showing that quarterly progress can fluctuate. Accordingly, rather than determining full-year achievement based solely on the FY2027 Q1 figures, we will evaluate the year-on-year comparison, progress against the full-year forecasts and the amounts required over the remaining period together.

A simple calculation based on the FY2027 forecasts gives an operating margin of approximately 25.3%, calculated as ¥620 million divided by ¥2,450 million, requiring an improvement of approximately 3.7 percentage points from FY2026's 21.6%. In the next results release, it will be important to see whether the company can disclose gross margin, SG&A expenses, member numbers and the number of corporate customers acquired alongside Q1 revenue and operating profit. In addition to whether the full-year forecasts are revised, we will also assess how much of the revenue and profit the company considers achieved as of Q1 and whether it indicates the levels required over the remaining 3 quarters.