Whether the sharp profit growth in FY2026 H1 can be sustained through the full-year target

Revenue for H1 from January through June 2026 was ¥18,609 million, operating profit was ¥1,538 million, ordinary profit was ¥1,538 million, and interim net profit attributable to owners of the parent was ¥1,069 million. Year on year, revenue increased 8.1%, while operating profit, ordinary profit and net profit rose 64.0%, 67.4% and 76.3%, respectively, with profit growth substantially outpacing revenue growth. The operating profit margin rose 2.8 percentage points, from 5.5% in the same period of the previous year to 8.3%.

The full-year forecasts revised by the company in H1 were revenue of ¥37,300 million, operating profit of ¥2,400 million, ordinary profit of ¥2,380 million and net profit of ¥1,550 million. H1 progress was 49.9% for revenue, 64.1% for operating profit, 64.6% for ordinary profit and 69.0% for net profit, indicating that a substantial portion of the annual plan had already been achieved on the profit side. However, temporary factors, including the timing of personnel-improvement expense recognition, are included, so it would not be appropriate to judge full-year achievement based solely on progress rates.

The ¥600 million increase from the previous year's H1 operating profit of ¥938 million reflected the recovery in Edu-care, expansion of Family Care, and differences in the timing of personnel-improvement expense recognition. H1 operating profit was ¥1,029 million for Family Care and ¥1,383 million for Edu-care, generating ¥2,412 million between the two businesses, while Professional posted a ¥31 million loss and Other a ¥2 million loss.

In the next, third quarter, the key point will be how much cumulative nine-month operating profit increases from H1's ¥1,538 million and whether progress against the full-year target of ¥2,400 million rises further. In particular, it will be important to determine whether the 8.3% operating profit margin is being maintained after excluding temporary timing effects, and whether progress against revenue of ¥37,300 million is in line with the company's plan after taking seasonality into account. Any further revision to the full-year forecast, the outlook for profit margins and the planned timing of second-half expenses will also be monitored.