FY2027 1Q: profit is ahead of the full-year plan, but the focus is on confirming the repeatability of growth in the first half

Revenue in FY2027 1Q was ¥3.383 billion, operating income was ¥318 million, ordinary income was ¥322 million, and quarterly net income attributable to owners of the parent was ¥222 million. The full-year forecasts are revenue of ¥13.546 billion, operating income of ¥1.077 billion, ordinary income of ¥1.060 billion, and net income of ¥726 million, representing progress rates at 1Q of 25.0% for revenue, 29.5% for operating income, 30.4% for ordinary income, and 30.6% for net income. The fact that profit is progressing ahead of revenue will be the first point to assess at the next results announcement.

In the same quarter of the previous year, revenue was ¥2.914 billion and operating income was ¥202 million, so FY2027 1Q revenue increased 16.1% and operating income increased 57.4%. The operating margin also rose from approximately 6.9% in the same period of the previous year to approximately 9.4% on a simple calculation. Meanwhile, the FY2026 financial results presentation showed standalone quarterly operating income of ¥202 million in 1Q, ¥195 million in 2Q, ¥239 million in 3Q and ¥242 million in 4Q, meaning this 1Q exceeded the levels of each of the previous four quarters. We will assess whether standalone Q2 operating income can also exceed the ¥196 million recorded in the same period of the previous year and whether the higher margin reflects temporary cost controls.

Simply subtracting the 1Q results from the full-year forecasts means that the remaining three quarters need to generate ¥10.163 billion in revenue and ¥759 million in operating income. However, because the number of children and utilisation rates in the childcare business tend to be lower in the first half than in the second half due to the timing gap between April promotions to the next grade and new enrolments, the company cannot be judged to be off track based solely on progress rates of 25.0% and 29.5%. The latest published information lists 11 November 2026 as the scheduled date for the next results announcement. We will review cumulative first-half results, standalone Q2 profitability, whether the full-year forecasts are maintained or revised, and any quantitative disclosure on utilisation rates and the number of children.