Revenue is on plan, but the recovery in earnings is being deferred

First-quarter revenue from April to June 2026 was ¥13,782 million, representing 24.6% of the FY2027 full-year forecast of ¥56,100 million. This was broadly in line with the 25% of the fiscal year elapsed, so based on the top line alone, the company cannot be said to be significantly behind plan. Revenue also increased by ¥1,412 million, or 11.4%, from ¥12,370 million in the same period of the previous year.

However, the company posted an operating loss of ¥321 million, an ordinary loss of ¥255 million and a quarterly net loss attributable to owners of the parent of ¥323 million. If the full-year operating profit forecast of ¥660 million is maintained, the company will need to first make up the first-quarter loss and then generate total operating profit of ¥981 million from the second quarter onward. This equates to an average of ¥327 million per quarter over the three quarters from the second through fourth quarters, but the company has not provided a quantitative explanation of its quarterly profit plan or seasonality.

The full-year forecasts for ordinary profit and net profit are ¥810 million and ¥620 million, respectively. Based on a simple calculation starting from the first-quarter results, achieving these forecasts would require ordinary profit of ¥1,065 million and profit attributable to owners of the parent of ¥943 million from the second quarter onward. Accordingly, at the next results announcement, it will be necessary to check not only cumulative revenue progress but also whether operating performance is moving from a narrower loss toward a return to profitability.

As of the first quarter, there were no revisions to the earnings forecasts. The full-year forecasts remained unchanged at revenue of ¥56,100 million, operating profit of ¥660 million, ordinary profit of ¥810 million and net profit of ¥620 million. At the next results announcement, revenue, gross margin, SG&A expenses, operating income, ordinary income and net income for the cumulative first half will need to be reviewed together to determine whether revenue growth is translating into a recovery in earnings.