Revenue is broadly on plan, but achieving operating profitability in the first half is the key test.

First-quarter revenue for the fiscal year ending March 2027 was ¥3,136 million, up ¥346 million, or 12.4%, from ¥2,790 million in the same quarter of the previous year. Revenue progress against the full-year forecast of ¥14,000 million was 22.4%, not far below the 25% that would correspond mechanically to one-quarter of the year having elapsed. The company’s own assessment also places revenue broadly in line with plan.

Profit progress, however, differs significantly from revenue progress. The first-quarter operating loss was ¥66 million, the ordinary loss was ¥13 million, and the quarterly net loss attributable to owners of the parent was ¥34 million. Progress against the full-year operating profit forecast of ¥350 million was negative 18.9%, so the company was not ahead of its profit plan at the end of the first quarter. To achieve full-year operating profit of ¥350 million, the company must first offset the first-quarter operating loss of ¥66 million and then generate a total of ¥416 million in operating profit from the second quarter onward.

For first-half revenue, ¥7,000 million is a mechanical benchmark based on allocating the full-year forecast evenly across six months. However, because the company has not disclosed seasonality or a quarterly profit plan, this amount cannot be treated as an official first-half forecast. In the next earnings release, it will be necessary to assess not only how much cumulative revenue through the second quarter has increased from ¥3,136 million, but also whether operating results have turned profitable and, if a loss remains, what supports maintaining the full-year forecast.

As of the first quarter, there had been no revision to the full-year earnings forecasts, and the annual dividend forecast remained unchanged at ¥23. Accordingly, the key issue in the next earnings release will be profit-margin recovery toward full-year operating profit of ¥350 million, rather than simply continued revenue growth. We will prioritize tracking cumulative operating results through the second quarter, revenue and profit progress against the full-year forecasts, and whether the earnings forecasts are revised.