FY2027 earnings forecast cut at the end of October; H1 requires reconfirmation

FY2026 actual results were revenue of ¥13.376 billion, operating profit of ¥1.535 billion and profit attributable to owners of the parent of ¥866 million. Against this, the initial FY2027 forecasts were revenue of ¥16.4 billion, operating profit of ¥2.5 billion and profit attributable to owners of the parent of ¥1.5 billion, implying revenue growth of 18.3% and operating profit growth of 23.2%. Following the forecast revision on 30 October, however, the figures became revenue of ¥15.4 billion, operating profit of ¥2.05 billion, profit attributable to owners of the parent of ¥1.2 billion and forecast EPS of ¥92.68.

The revisions were a ¥1.0 billion, or 6.1%, reduction in revenue, a ¥450 million, or 18.0%, reduction in operating profit, and a ¥300 million, or 20.0%, reduction in profit attributable to owners of the parent. As the operating profit forecast at the end of FY2027-Q1 was ¥2.5 billion and forecast EPS was ¥122.8, the EPS reduction of approximately 24.5% exceeded the reduction in profit. The H1 results should also clarify why the impact on earnings per share, including the effects of the number of shares and preferred share dividends, has become larger.

In FY2027-Q1, revenue was ¥3.499 billion, against an operating loss of ¥207 million and a loss attributable to owners of the parent of ¥347 million. Revenue represented 21.3% progress against the revised full-year forecast, below the simple quarterly elapsed-period benchmark of 25%, while operating profit was negative. The advertising platform and digital PR businesses recorded higher profits, but the marketing SaaS business recorded lower profit. A numerical bridge has not yet shown which segment was the main driver of the downward revision in H1.

For FY2027-H1, we use simple six-month progress benchmarks of revenue of ¥7.7 billion, operating profit of ¥1.025 billion and profit attributable to owners of the parent of ¥600 million. However, as the advertising platform business tends to generate more revenue in the second half, these are monitoring thresholds for detecting anomalies, not forecasts incorporating the company’s plan or seasonality. The results should disclose, on an amount basis, whether the downward revision at the end of October was caused by one-off losses, lower SaaS margins, the pace of customer acquisition in the advertising business, or changes in the consolidated contribution from digital PR.