Revenue and GPV below plan, but profit ahead; focus shifts to recovering revenue growth in the second half

Revenue in the first half of the fiscal year ending December 2026 was ¥2,467 million, up 14.3% year on year, while operating profit was ¥154 million, up 161.6%. The earnings presentation stated that revenue fell ¥225 million short of plan and payment volume fell ¥50.1 billion short of plan, while operating profit, ordinary profit and interim net profit attributable to owners of the parent exceeded plan by ¥13 million, ¥5 million and ¥5 million, respectively. Accordingly, the first half appears to have been a period in which revenue mix and cost management supported profit more than progress in payment volume and revenue.

The full-year forecasts remain unchanged at revenue of ¥5,760 million, operating profit of ¥500 million, ordinary profit of ¥707 million and net profit attributable to owners of the parent of ¥493 million. First-half progress rates were only 42.8% for revenue, 30.9% for operating profit and 41.2% for net profit, with operating profit progressing relatively slowly on a simple half-year basis. Achieving full-year operating profit will require at least ¥346 million in the second half, meaning that more than twice the first-half operating profit of ¥154 million must be generated in the second half alone.

The quarterly revenue figures published in the earnings presentation were ¥1,331 million for Q1, ¥1,135 million for Q2, a forecast ¥1,466 million for Q3 and a forecast ¥1,600 million for Q4. Q2 revenue declined from Q1 owing in part to the reactionary decline in terminal sales, but the plan calls for revenue growth to resume from Q3 onward, based on the launch of new terminals and a recovery in payment-related revenue. However, simply adding the published quarterly figures produces ¥5,533 million, leaving a ¥227 million gap versus the full-year forecast of ¥5,760 million. The next results should clarify whether the published figures are plan figures or reference figures based on different assumptions.

The first-half gross profit margin was 76.4%, and the Q2 standalone margin was 80.8%, both high levels. The company assumes that it will maintain a margin above 70% for the full year. In FY2026-Q3, it will be important to assess how closely actual results approach the published forecasts of revenue of ¥1,466 million, operating profit of ¥207 million and payment volume of ¥659.2 billion. If profit continues to outperform while revenue remains below plan, it will be necessary to determine whether the improvement is temporary and driven by cost controls or reflects a lasting improvement in revenue mix.