Can continued revenue growth in Automotive Industry DX lead to segment profitability in Q3?

The Automotive Industry DX business generated revenue of ¥2,494.742 million in the first half of FY2026, up 20.0% year on year. The segment loss was ¥116.727 million, a reduction of approximately ¥73 million from ¥189.858 million in the same period of the previous year. The company attributed the revenue growth to the accumulation of monthly revenue from existing customers, the acquisition of customers who do not pass credit screening, and improved customer acquisition efficiency. However, the business remained in an operating loss in the first half, and there are still points to verify before concluding that growth is translating into profit.

The improvement is reflected not only in the expansion of revenue but also in the restraint of upfront investment. Advertising and promotional expense for the Automotive Industry DX business fell from ¥708.675 million for FY2024 as a whole to ¥414.137 million for FY2025 as a whole, and the segment was indicated to have turned profitable in the fourth quarter of FY2025. For the first half of FY2026, however, the results summary did not disclose the actual advertising and promotional expense or the breakdown of monthly revenue, spot revenue and vehicle sales revenue. It is therefore necessary to distinguish between a sustained improvement in the customer base and a temporary reduction in losses resulting from investment restraint.

At the next results announcement, we will review cumulative nine-month revenue, segment profit or loss, advertising and promotional expense, and the customer churn rate together. Of particular importance is whether the loss has narrowed further from the ¥116.727 million recorded in the first half, or whether the Automotive Industry DX business has become profitable on a cumulative basis. We will also check whether quantitative supplementary disclosure is provided on the impact of slower used-vehicle export demand, against the backdrop of conditions in the Middle East, on dealer-to-dealer sales, and on the number of new contracts from acquiring customers who do not pass credit screening.