FY2027-Q1 also posted an operating loss, and a return to normalized earnings has yet to be confirmed

FY2027-Q1 revenue was ¥2,311 million, operating loss was ¥310 million, ordinary loss was ¥305 million and the quarterly net loss attributable to owners of the parent was ¥178 million. Despite recording revenue, the company was loss-making from the operating-income level, so it cannot currently be judged to have achieved profitability on a standalone first-quarter basis. At the next interim results, it will be necessary to assess not only the recovery in operating income but also the extent to which ordinary income and net income recover.

In the immediately preceding full year, FY2026, the company recorded revenue of ¥9,394 million, an operating loss of ¥2,792 million and an ordinary loss of ¥2,827 million. While revenue declined only 1.0% year on year, the operating margin deteriorated sharply from 2.0% in the previous year to a significantly negative level. Profit was pressured not only by the scale of revenue, but also by credit-loss-related expenses, impairment losses, litigation settlement costs and SG&A expenses associated with the expansion of the scope of consolidation. The FY2027-Q1 operating loss of ¥310 million cannot be compared directly with FY2026's full-year figure because the periods differ, but a return from losses has at least not yet been demonstrated.

For the FY2027-H1 assessment, the first turning point will be whether standalone second-quarter operating income exceeds ¥0 million. Even if the second quarter is profitable, cumulative operating loss will remain if operating income is ¥310 million or less, while operating income above ¥310 million would produce cumulative operating income for the first half. For ordinary income, ¥305 million, and for net income, ¥178 million, are the benchmarks for exceeding the cumulative first-quarter losses. If these thresholds are not met, the result will be limited to a reduction in first-half losses, and it will be too early to judge full-year earnings normalization.

The FY2027-Q1 financial summary also does not break down whether the ¥310 million operating loss arose from the bullion business, the non-bank business, credit-loss-related expenses or SG&A expenses. In FY2026, both the bullion and non-bank businesses recorded segment losses. In FY2027-H1, it will therefore be necessary to review revenue and profit for both segments, as well as whether one-off losses incurred in the previous year have recurred or remain as ordinary expenses.