Q3 marks the first period for assessing earnings progress against the full-year plan since the merger and confirming seasonality

Revenue in the first half of FY2026 ending December was ¥16,807 million, operating profit was ¥735 million, profit before tax was ¥361 million and profit attributable to owners of the parent was ¥318 million. Revenue increased 73.2% year on year, operating profit rose 49.7% and net income increased 47.1%, but the consolidated scale expanded following the merger with エスクリ effective 1 April, so these figures cannot be read as simple growth rates for the existing business.

The full-year forecasts are revenue of ¥42,789 million, operating profit of ¥3,000 million, profit before tax of ¥2,480 million and profit attributable to owners of the parent of ¥1,640 million. Calculated against these forecasts, first-half progress was 39.3% for revenue, 24.5% for operating profit, 14.6% for profit before tax and 19.4% for net income. To achieve the full-year forecasts, the company needs second-half revenue of ¥25,982 million, operating profit of ¥2,265 million, profit before tax of ¥2,119 million and net income of ¥1,322 million, indicating a high degree of dependence on the second half for earnings.

The company explains that revenue in the second half tends to exceed first-half revenue because the bridal business is busiest from September to November. Q3 includes September, the start of the peak season, while Q4 includes weddings held in October and November, so it is too early to conclude that the full-year forecasts will be missed based solely on first-half progress. However, the Q2 earnings presentation did not show progress against the full-year forecasts. An important point for Q3 will therefore be whether the company discloses both nine-month cumulative results and the revenue and profit required over the remaining three months.

Operating profit improved from a ¥35 million loss in Q1 to ¥735 million for the first half, implying standalone Q2 operating profit of ¥770 million on a simple calculation. However, it is not possible to determine whether the increase in operating profit was driven by the seasonality of wedding ceremonies or structural factors such as higher average revenue per wedding and lower SG&A without examining standalone Q3 earnings and operating margin. At the next earnings release, we will look for disclosure not only on whether the full-year forecasts have been revised, but also on standalone Q3 wedding volumes, average revenue per wedding, SG&A and operating margin.