Revenue is ahead of plan but operating profit is lagging, making profit recovery the focus for Q3

Operating revenue for January to June 2026 was ¥768.488 million, representing progress of 46.3% against the full-year forecast of ¥1,661 million for the fiscal year ending December 2026. Operating profit was ¥57.863 million, representing progress of only 33.8% against the full-year forecast of ¥171 million. Ordinary profit was ¥80.878 million, for progress of 43.7%, while interim net profit was ¥67.100 million, for progress of 49.3%. Only operating profit is lagging revenue and the lower levels of profit.

Since Q3 represents nine-month cumulative results, 75% of the full-year forecast can be used as a simple mechanical benchmark, assuming that quarterly seasonality has not been disclosed. On this basis, nine-month cumulative operating revenue of ¥1,245.75 million, operating profit of ¥128.25 million, ordinary profit of ¥138.75 million and net profit of ¥102 million would serve as comparison benchmarks. Reaching these levels from the interim results would require operating revenue of ¥477.262 million and operating profit of ¥70.387 million over the remaining three months, including Q3 alone, but these are analytical benchmarks based on evenly paced progress, not the company's quarterly forecast.

The company explained that operating revenue and operating profit fell below the year-earlier levels in the interim period because it continued upfront investments, including hiring, and incurred temporary costs associated with a fundamental strengthening of its internal control, audit and oversight systems. Accordingly, in Q3 it will be necessary to check not only whether operating revenue exceeds the year-earlier level, but also whether the company can absorb upfront investment and internal-control costs and restore its operating margin, as well as whether it can distinguish between the temporary and recurring portions of those costs.

As of now, the company has not disclosed quarterly forecasts, seasonality in advertising demand or profit plans by segment. Therefore, at the Q3 results announcement it will be important to check not only whether the full-year forecast is maintained, but also which businesses, customers and cost items will generate the more than ¥70 million of operating profit required in the second half, including trends in projects year on year and the outlook for personnel and administrative expenses.