First-half operating profit turned positive against the full-year forecast of ¥500 million, but the sustainability of the recovery has yet to be confirmed

Revenue for January–June 2026 was ¥14,274 million, up 16.8% year on year, while operating profit was ¥82 million, turning positive from an operating loss of ¥431 million in the same period of the previous year. Ordinary profit was ¥71 million, and interim net profit attributable to owners of the parent was ¥30 million, with each stage of the income statement turning profitable. The full-year forecasts remain unchanged at revenue of ¥30,500 million, operating profit of ¥500 million, ordinary profit of ¥500 million and net profit of ¥300 million.

First-half progress against the full-year forecasts was approximately 46.8% for revenue, close to the 50% level expected halfway through the year. Operating profit, however, was only ¥82 million, representing 16.4% of the full-year forecast. If 75% of the full-year forecast is used as a simple benchmark for the third-quarter point, the benchmarks are revenue of ¥22,875 million and operating profit of ¥375 million. To achieve the full-year forecasts based on first-half results, the company needs to generate total operating profit of ¥418 million in the third and fourth quarters.

The recovery in profit is concentrated in the first quarter. Cumulative operating profit for the first quarter was ¥346 million, but the first-half cumulative figure was ¥82 million, implying a standalone operating loss of approximately ¥264 million in the second quarter based on a simple calculation. Standalone second-quarter revenue was approximately ¥6,866 million. Although revenue did not decline materially, profit deteriorated, so the third quarter will need to clarify the impact of recruitment and training, utilization, corporate overhead and segment-level expenses.

The company explained that first-half revenue was in line with expectations and that operating profit exceeded its interim forecast. However, its presentation materials do not explicitly provide numerical progress against the full-year forecast or the standalone second-quarter operating margin. Next time, we will assess standalone and cumulative third-quarter operating profit, gross profit margin, changes in selling, general and administrative expenses, and whether the full-year forecasts can be maintained, to determine whether the first-half return to profitability was temporary or can be repeated in the second half.