FY2026 loss-reduction plan is dependent on the second half

The interim period from January through June 2026 generated revenue of ¥6,183 million, an operating loss of ¥574 million, an ordinary loss of ¥636 million and an interim net loss attributable to owners of the parent of ¥1,063 million. Revenue fell 13.5% from ¥7,280 million in the same period of the previous year, while the operating loss narrowed from ¥1,637 million to ¥574 million. Revenue declined while the loss narrowed, so in FY2026-Q3 it will be necessary to determine whether a recovery in revenue can translate into improved profitability.

The company’s full-year forecast is revenue of ¥15,443 million, an operating loss of ¥75 million, an ordinary loss of ¥162 million and a net loss attributable to owners of the parent of ¥1,093 million, with no revision from the previous forecast. A simple calculation based on the difference from the interim results indicates that the second half must generate revenue of ¥9,260 million, operating profit of ¥499 million and ordinary profit of ¥474 million. For revenue, ¥11,582 million, equivalent to 75% of the full-year forecast, can serve as a mechanical benchmark for cumulative Q3 progress, but this is a comparison reference that does not reflect seasonality and is not a target set by the company.

Compared with the same period of the previous year, revenue declined from ¥7,280 million to ¥6,183 million, while the operating loss narrowed from ¥1,637 million to ¥574 million. Accordingly, the issue to monitor in Q3 is not simply higher revenue, but whether increased equipment revenue is accompanied by sufficient gross profit to narrow the operating loss further. The interim disclosure does not provide a sufficient breakdown of the effects of the cost of sales, inventory write-downs and low-margin projects, so Q3 will require simultaneous confirmation of the improvement in operating income or loss, its contributing factors and whether the full-year forecast is maintained or revised.