FY2026 Q3: Focus on whether earnings recover sufficiently to meet the full-year forecast

Revenue for the interim period of the fiscal year ending December 2026 was ¥2,206.207 million, down 48.8% from ¥4,309.090 million in the same period of the previous year. Meanwhile, the operating loss narrowed to ¥117.783 million from ¥136.037 million. Revenue declined sharply while the loss narrowed, indicating that project mix and cost management, rather than a simple recovery in demand, are influencing earnings.

Interim-period revenue represented 31.7% of the full-year forecast, calculated as ¥2,206.207 million divided by ¥6,962 million. This is 18.3 percentage points below the simple 50% progress expected after six months, meaning that ¥4,755.793 million in second-half revenue is required to maintain the full-year forecast. This is approximately 2.16 times interim-period revenue. In the third-quarter results, it will be necessary to assess not only how much revenue has accumulated through the third quarter, but also whether deliveries of major projects are concentrated in the fourth quarter and whether projects have been postponed or lost.

On the earnings side, the interim-period operating loss was ¥117.783 million, compared with the full-year operating income forecast of ¥149 million. Meeting the full-year forecast therefore requires second-half operating income of ¥266.783 million on a simple calculation. Although the loss narrowed year on year, the operating margin deteriorated from approximately negative 3.2% in the same period of the previous year to approximately negative 5.3%, making it difficult to conclude that an earnings recovery has been sufficiently confirmed at this stage.

The company has explained that investment in operational efficiency and labor saving remains solid and that demand for the introduction of multi-payment terminals is firm, but it has not broken down the decline in interim-period revenue by factor in monetary terms. The latest information indicates that the next earnings release is scheduled for 13 November 2026. That release will be monitored primarily for third-quarter cumulative revenue, operating results, any revision to the full-year forecast, progress in deliveries of major projects, and any concentration of revenue in the fourth quarter.