The first hurdle for the full-year plan is how much of the weak first-quarter progress can be recovered in H1

FY2027 Q1 revenue was ¥732.940 million, down 17.9% year on year. Operating loss was ¥69.874 million, ordinary loss was ¥73.713 million, and net loss attributable to owners of the parent was ¥88.428 million. The company has not changed its full-year forecasts of ¥6,200 million in revenue, ¥250 million in operating profit, ¥247 million in ordinary profit and ¥174 million in net profit, but revenue progress was only 11.8%, while operating profit is behind plan.

The company says that its business structure, in which project launches and content updates are concentrated from the second half onward, makes the first quarter seasonally prone to losses. FY2026 H1, with revenue of ¥2,307 million and operating profit of ¥87 million, provides a comparison for testing whether this explanation is reasonable. Whether FY2027 H1 can exceed the ¥2,307 million recorded in the same period last year, or at least how much it can recover from the 17.9% year-on-year decline in the first quarter, will be the basis for assessing results after taking seasonality into account.

Subtracting first-quarter revenue of ¥732.940 million from the full-year revenue forecast of ¥6,200 million leaves ¥5,467.060 million to be generated in Q2-Q4. This represents 88.2% of the full-year plan. Operating profit, meanwhile, started with a first-quarter loss of ¥69.874 million, so achieving full-year operating profit of ¥250 million requires operating profit of ¥319.874 million from Q2-Q4 alone. This is equivalent to 128% of the full-year target, making it necessary to confirm not only a revenue recovery but also whether fixed costs and selling, general and administrative expenses can be absorbed and margins restored.

FY2026 full-year results were revenue of ¥5,406 million and operating profit of ¥228 million. The FY2027 company forecast targets year-on-year growth of 14.7% in revenue and 9.3% in operating profit. The planned operating margin is approximately 4.0%, below FY2026's approximately 4.2%, so the forecast does not assume a substantial improvement in profitability. However, first-quarter operating margin was negative 9.5%. Unless it returns to positive territory by H1, the concentration of profit required in the remaining period will increase further.

At the next earnings announcement, H1 revenue, operating profit and operating margin will be reviewed, along with the reason for maintaining the full-year forecast. In particular, if H1 revenue is below ¥2,307 million, specific support for building ¥5,467.060 million in the second half will be needed, including the order backlog and project launch timing. If the first quarter is assumed to incur a seasonal loss, whether operating results at least exceed ¥0 million or project launches from Q2 onward are explained quantitatively will be important criteria.