Most of the earnings plan was achieved in 3Q, but the investment burden in 4Q is key to meeting the FY target

For the nine months ended 3Q, revenue was ¥2,715 million, operating profit was ¥257 million, ordinary profit was ¥261 million and net profit attributable to owners of the parent was ¥177 million. Year on year, revenue increased 7.7%, operating profit 42.1%, ordinary profit 44.2% and net profit 47.0%, resulting in profit growth well above revenue growth.

The full-year forecasts are revenue of ¥3,704 million, operating profit of ¥284 million, ordinary profit of ¥283 million and net profit of ¥185 million. The progress rates stated in the company’s materials are 73.3%, 90.3%, 92.0% and 95.9%, respectively. On a simple calculation, 4Q results required to meet the full-year plan are revenue of ¥989 million, operating profit of ¥27 million, ordinary profit of ¥22 million and net profit of ¥8 million. While 26.7% of the full-year revenue plan remains for 4Q, only 9.5% of the operating profit plan remains, so the hurdle to meeting the plan appears low when viewed solely from the profit perspective.

Meanwhile, the nine-month operating margin was 9.5%, an improvement of 2.3 percentage points year on year. The gross margin also improved by 2.6 percentage points to 29.1%, suggesting that a shift toward higher-margin solutions boosted earnings progress. However, dividing the ¥27 million of operating profit required in 4Q by the required revenue of ¥989 million gives a simple 4Q operating margin of approximately 2.7%. Although direct comparison is not possible because seasonality and the timing of investment recognition will have an impact, the possibility that the 4Q margin will decline while the full-year plan is maintained should be monitored.

The company views revenue as being within its internal plan and profit as progressing very strongly. At the same time, it has decided not to raise its full-year forecasts and plans to bring forward and concentrate excess profit in 4Q growth investments. In the FY2026 results, it will be important to distinguish 4Q standalone revenue and operating profit, the amount of expenses increased by the investments, and the operating margin after investment.