Limited headroom remains after the full-year downward revision, making control of the 4Q loss the key focus

Revenue for the 9 months ended June 2026 was ¥10,073.651 million, down 11.5% from ¥11,388.438 million in the same period of the previous year. The operating loss was ¥132.120 million, a substantial increase from the ¥7.620 million operating loss in the same period of the previous year. The operating margin was approximately negative 1.31%, down approximately 1.25 percentage points from approximately negative 0.07% in the same period of the previous year, indicating that profitability deteriorated in addition to the decline in revenue.

As of 3Q, the full-year forecasts were revenue of ¥13,660 million, an operating loss of ¥150 million, an ordinary loss of ¥70 million, and a net loss attributable to owners of the parent of ¥100 million. Revenue progress was approximately 73.7%, slightly below the 75% expected after 9 months, while the operating loss had reached ¥132.120 million, already consuming 88.1% of the full-year loss forecast. Profitability has deteriorated ahead of revenue, leaving little basis for assuming a substantial improvement in profitability in 4Q.

To achieve these full-year forecasts, 4Q revenue alone must reach ¥3,586.349 million. Since operating income and loss would move from a cumulative 3Q loss of ¥132.120 million to a full-year loss of ¥150 million, the 4Q operating loss must remain within ¥17.880 million. The ordinary loss must remain within ¥19.586 million, and the net loss within ¥33.067 million. Even if 4Q revenue is achieved, the operating loss could widen again if personnel expenses and the cost of securing temporary staff continue to rise.

The company cited the failure of advertising initiatives to produce the expected results, difficulties securing and supplying temporary staff, the end of several call-center staffing projects in the Senior Work business, and increases in personnel expenses and acquisition costs as factors behind the 3Q decline in revenue and earnings. However, it has not disclosed the revenue decline or expense increase attributable to each factor. At the next earnings announcement, it will be necessary to determine not only whether 4Q revenue reached the plan, but also, in monetary terms, which of project volume, staff supply, and costs improved or deteriorated relative to the revised ¥150 million operating loss forecast.