FY2026: Revenue growth with lower operating profit shifts focus to cost absorption

Revenue for the nine months ended June 2026 was ¥6,009 million, up 6.5% year on year. Operating profit was ¥1,100 million, ordinary profit was ¥1,068 million, and net profit was ¥781 million, down 17.9%, 19.7% and 11.3%, respectively, from the same period a year earlier. Revenue growth and profit decline are occurring together, and the pattern of revenue growth failing to translate directly into profit growth continues.

The full-year forecast stated in the third-quarter earnings release is revenue of ¥8,250 million and operating profit of ¥1,400 million. On this basis, the company needs to generate an additional ¥2,241 million in revenue and ¥300 million in operating profit in the fourth quarter. Revenue and operating profit are 72.8% and 78.6% of their respective full-year forecasts. Although profit is progressing faster than revenue, quarterly results alone could be affected by stronger headwinds from lower revenue and profit, making it necessary to monitor cost controls in the latter part of the second half and revenue by service.

The increase in advertising and promotional expenses and personnel costs is cited as the main factor weighing on profit. Selling, general and administrative expenses were ¥4,673.691 million, up 12.4% year on year, and higher employee compensation was also identified as a cost increase. Dividing operating profit of ¥1,100 million by revenue of ¥6,009 million produces an operating margin of approximately 18.3%, although this ratio is not shown in the earnings release. In the next results announcement, it will be important to confirm whether advertising and promotional expenses, personnel costs, and other selling, general and administrative expenses are disclosed in monetary terms, and whether investment in Wevox's growth contributed to higher revenue and profit.