1Q is ahead of the full-year plan, with profitability established on a cumulative 2Q basis

1Q consolidated revenue was ¥272.091 million, up 9.9% from ¥247.529 million in the same quarter of the previous year. Operating profit turned around from an operating loss of ¥8.121 million in the same quarter of the previous year to a profit of ¥17.672 million. Ordinary profit was ¥17.712 million, and quarterly net profit attributable to owners of the parent was ¥7.843 million. Progress against the full-year revenue forecast of ¥960 million was 28.3%, while progress against the ¥52 million operating profit forecast was approximately 34.0%.

However, the company has disclosed only full-year forecasts of ¥960 million in revenue, ¥52 million in operating profit, ¥64 million in ordinary profit and ¥45 million in net profit. It has not explicitly provided FY2027-H1 targets or first-half progress rates against the full-year forecasts. Accordingly, revenue of ¥480 million, operating profit of ¥26 million, ordinary profit of ¥32 million and net profit of ¥22.5 million are reference benchmarks based on simply assuming that the first half will account for 50% of the full year, not the company's first-half guidance.

To achieve the full-year forecasts based on 1Q results, the remaining 3 quarters must generate ¥687.909 million in revenue, ¥34.328 million in operating profit, ¥46.288 million in ordinary profit and ¥37.157 million in net profit. Although 1Q alone secured approximately one-third of the full-year operating profit forecast, net profit progress was not as strong as operating profit. It will also be necessary to monitor how profit builds from 2Q onward, including extraordinary gains and losses and the tax burden.

The return to profitability in 1Q was supported by progress in member metrics and user spending per customer, the absence of app development costs and goodwill amortization incurred in the same quarter of the previous year, and electricity sales revenue from the temporary holding of solar power generation equipment. In FY2027-H1, we will track whether 2Q standalone operating profit remains positive and whether the company provides specific explanations of the profit level required over the remaining period if it maintains its full-year forecasts.