The FY2027 target has been substantially reduced, and the company has entered a phase of demonstrating a revised ¥400 million operating profit

In its FY2026 disclosure, the company revised its medium- to long-term FY2027 targets to ¥6,200 million in revenue, ¥400 million in operating profit and an operating margin of at least 6.5%. This represents reductions of ¥1,500 million in revenue and ¥500 million in operating profit from the previous targets of ¥7,700 million in revenue, ¥900 million in operating profit and an operating margin of at least 11.7%. While the target levels have been revised to more realistic figures, the change also indicates that growth expectations themselves have declined. In the next earnings release, it will be important to assess how specifically the assumptions behind the revised targets are articulated.

FY2026 full-year revenue was ¥6,036 million and operating profit was ¥81 million. In FY2027 first quarter, revenue was ¥1,359 million, operating profit was ¥49 million, ordinary profit was ¥28 million and net profit was ¥28 million. At the operating level, the company turned profitable from a loss in the year-earlier quarter. However, first-quarter operating profit of ¥49 million represents only 12.3% of the full-year forecast of ¥400 million, while revenue progress was 21.9%, calculated as ¥1,359 million divided by ¥6,200 million. Although first-quarter seasonality needs to be taken into account, profit is progressing more slowly than revenue.

The first-quarter operating margin was approximately 3.6% based on the reported figures, but the financial summary in the earnings release did not disclose the operating margin. To achieve the company’s full-year target operating margin of at least 6.5%, a simple calculation indicates that a further ¥351 million in operating profit must be generated over the remaining period. At the next interim earnings release, it will be important to provide operating margins, profit margins by segment, and performance against plans for advertising and promotional expenses, personnel expenses, and rent, so that the achievability of the ¥400 million target can be assessed.

Even after the target reduction, the company must simultaneously pursue renewed growth in the matchmaking business, improvements in pricing and costs in the casual wedding business, and increased orders in the regional revitalization/QOL business. At the next earnings release, the focus should be not only on whether the full-year forecast is maintained, but also on which segments will contribute how much of the ¥6,200 million in revenue and ¥400 million in operating profit, and whether the cost structure required to achieve an operating margin of at least 6.5% has become established.