Monthly profitability is being achieved ahead of schedule, but accelerating profit growth in H2 is necessary to meet the full-year forecast

Revenue for FY2026 H1 was ¥1,200.478 million, operating loss was ¥21.854 million, ordinary loss was ¥18.306 million, and net loss attributable to owners of the parent was ¥36.515 million. Revenue was limited to 45.9% of the ¥2,616 million full-year forecast, 4.1 percentage points below the simple 50% time-based progress level after 6 months. Accordingly, based on revenue alone, cumulative revenue of around ¥1,962 million would be one benchmark for the Q3 results.

On the earnings front, however, there are signs of improvement. The cumulative operating loss through H1 narrowed to ¥21.854 million from the Q1 operating loss of ¥32.667 million. On a simple difference basis, this implies operating profit of approximately ¥10.813 million in the Q2 accounting period. The company said it remained profitable at both the operating and ordinary levels from March 2026, achieving monthly operating profitability from May 2026, as initially forecast, two months ahead of schedule. However, monthly operating profit and the size of the profits have not been disclosed.

Against the full-year operating profit forecast of ¥32 million, the company had an operating loss of ¥21.854 million at H1, meaning it needs to generate ¥53.854 million in operating profit over the remaining 6 months, or approximately ¥8.976 million per month. It also needs to generate ¥1,415.522 million in revenue in H2. The key issue is not only whether monthly profitability continues, but also whether customer retention under the new low-price courses and improvements in customer spend and visit frequency are translating into profit.

In the next results announcement, it will be necessary to check cumulative revenue and operating income through Q3, as well as whether monthly profitability continued from June through August. Special losses in H1 totaled ¥5.430 million, comprising an impairment loss of ¥2.824 million and contract cancellation penalties of ¥2.606 million. It should also be determined whether operating profitability was due to a temporary reduction in expenses and whether additional impairment losses or cancellation-related expenses arose in Q3.