Progress was approximately one-quarter of the full-year plan as of Q1 for the fiscal year ending March 2027

In Q1 of the fiscal year ending March 2027, revenue was ¥1,502 million, operating income was ¥219 million, ordinary income was ¥220 million, and net income attributable to owners of the parent was ¥150 million. Compared with revenue of ¥1,327 million and operating income of ¥202 million in the same period of the prior year, revenue increased 13.2% and operating income increased 8.8%, maintaining growth in both revenue and profit. The increase in revenue from the same period of the prior year was ¥175 million, while operating income increased by ¥17 million.

The full-year plan calls for revenue of ¥6,000 million, operating income of ¥905 million, ordinary income of ¥900 million, and net income attributable to owners of the parent of ¥604 million. Progress against the full-year plan was 25.0% for revenue, 24.3% for operating income, 24.4% for ordinary income, and 24.8% for net income. Compared with a simple 50% half-year benchmark, the first-half checkpoints are revenue of ¥3,000 million, operating income of ¥452.5 million, ordinary income of ¥450 million, and net income of ¥302 million. However, seasonality in recruitment and real-estate-related services has not been disclosed, so it would be inappropriate to conclude that the plan will be missed solely because progress is below 50%; an explanation of seasonal factors is also needed.

The Q1 operating margin was approximately 14.6%, calculated as ¥219 million ÷ ¥1,502 million. In the same period of the prior year, it was approximately 15.2%, calculated as ¥202 million ÷ ¥1,327 million. Thus, although revenue grew, the margin declined by approximately 0.6 percentage points. The operating margin under the full-year plan is 15.1%. The first-half breakdown of SG&A expenses and segment profit will need to be reviewed to determine whether the Q1 profit growth resulted from absorbing fixed-cost burdens such as advertising and personnel expenses, or from a temporary business mix.

At the next FY2027-H1 results announcement, we will check not only simple progress against the plan, but also whether the operating margin has improved from Q1 and whether the basis for maintaining the full-year plan has become more concrete. The company did not prepare a quarterly cash flow statement for Q1, and it has not quantitatively disclosed the assumptions underlying or the risk amounts associated with the full-year forecast. It is therefore important to assess progress against the plan, profitability, and any changes to the full-year forecast together at the first-half results announcement.