Losses continue to narrow, but a sharp improvement in H2 is needed to achieve full-year operating profit of ¥100 million

FY2026-H1 revenue was approximately ¥2,378 million, down approximately 3.1% from approximately ¥2,454 million in the same period of the previous year. Meanwhile, the operating loss narrowed from approximately ¥46 million to approximately ¥10.7 million, the ordinary loss from approximately ¥68 million to approximately ¥5.6 million, and the interim net loss attributable to owners of the parent from approximately ¥83 million to approximately ¥14.6 million. The reduction in losses despite lower revenue is a positive factor, but the company remained loss-making at the operating, ordinary and net income levels.

The company’s FY2026 targets are revenue of ¥5,300 million, operating profit of ¥100 million, ordinary profit of ¥83 million and net profit attributable to owners of the parent of ¥70 million. Simply deducting H1 results implies that H2 would need to generate approximately ¥2,922 million in revenue, ¥110.7 million in operating profit, ¥88.6 million in ordinary profit and ¥84.6 million in net profit. This is a mechanical calculation that does not take seasonality into account and is not the company’s plan itself, but based solely on progress through H1, it indicates that a substantial portion of the profit improvement is concentrated in H2.

The straight-line nine-month benchmark is revenue of ¥3,975 million and operating profit of ¥75 million. To approach these levels in Q3, standalone Q3 revenue of approximately ¥1,597 million and operating profit of approximately ¥85.7 million would be required. Since seasonality and the timing of orders have not been disclosed, these figures cannot be treated as the company’s quarterly plan, but the Q3 results need to be assessed separately for cumulative revenue, cumulative operating income or loss, and standalone Q3 changes.

FY2025 revenue was ¥5,064 million and operating profit was only approximately ¥10 million. Accordingly, the FY2026 operating profit target of ¥100 million is not merely a plan to return to profitability, but a plan to increase profit by approximately ¥90 million. In Q3, it will be necessary to assess not only whether the full-year forecast is maintained, but also whether the company provides specific explanations of price pass-through, cost reductions, sales volume and product mix sufficient to achieve this level of profit in H2.