FY2027 plan: higher revenue but lower operating profit; assess the extent of front-loaded costs in Q1

FY2026 revenue was ¥10.739 billion, ordinary profit was ¥808 million, and net profit attributable to owners of the parent was ¥610 million. Revenue increased 5.1% from ¥10.221 billion in the previous fiscal year, while operating profit rose from ¥430 million to ¥587 million, indicating an improvement in margins as well as revenue growth. In the next FY2027-Q1, the first point to assess will be whether this profit growth is recurring from the start of the fiscal year rather than being driven by a temporary concentration of demand.

The company's FY2027 forecasts are revenue of ¥10.8 billion, operating profit of ¥550 million, ordinary profit of ¥660 million, and net profit attributable to owners of the parent of ¥440 million. Revenue is expected to increase by only about 0.6% from FY2026 actual results, while operating profit, ordinary profit and net profit are planned to decline by approximately 6.3%, 18.3% and 27.9%, respectively, making the weakness in profit more pronounced than the top-line growth. The numerical targets in the First Medium-Term Management Plan 2027 were revised upward from revenue of ¥10.5 billion and operating profit of ¥300 million to ¥10.8 billion and ¥550 million. The revenue target has therefore been almost achieved based on FY2026 actual results, while operating profit has already exceeded its target. Accordingly, the focus of the next results announcement will be whether the company can maintain its profit level in the final year, rather than the risk of missing the plan.

For FY2027, the company has indicated that it intends to allocate strategic budgets to recruitment, market research and research and development. Disclosed total education and training expenses were ¥4.584 million in FY2026, or ¥42,000 per employee. Some personnel-related investment has therefore been quantified, but the combined amounts for recruitment, market research and research and development, as well as their impact on operating profit, have not been broken out. In Q1, it will therefore be necessary to review not only revenue but also the increase in SG&A, the timing of recruitment- and R&D-related expense recognition, and the year-on-year change in the operating margin.

FY2026-Q1, the basis for comparison, recorded revenue of ¥2.669 billion, operating profit of ¥150 million, ordinary profit of ¥238 million, and quarterly net profit attributable to owners of the parent of ¥164 million. Even if FY2027-Q1 revenue exceeds the year-earlier level, a decline in operating profit would make it easier to conclude that the front-loaded cost burden anticipated by the company has materialized. Conversely, if revenue growth and an improved operating margin are confirmed at the same time, the possibility that the FY2027 forecast is conservative can be considered.