Interim-period revenue reached the halfway mark, but profit recovery was concentrated in the second quarter

Revenue for the six months ended June 2026 was ¥937.1 million, down 10.7% year on year. The operating loss was ¥100.4 million, the ordinary loss was ¥97.8 million, and the interim net loss attributable to owners of the parent was ¥98.5 million. The full-year forecasts are revenue of ¥1,903.3 million, an operating loss of ¥306.2 million, and a net loss of ¥311.7 million. Revenue progress was 49.2% and gross profit progress was 50.7%, putting both broadly at the halfway point in absolute terms. However, the gross profit margin was 52.5% and the operating margin was negative 10.7%, deteriorating by 5.8 and 11.1 percentage points, respectively, from the same period of the previous year.

On a quarterly standalone basis, first-quarter revenue was ¥388.8 million and the operating loss was ¥124.0 million, while second-quarter revenue was ¥548.3 million, gross profit was ¥300.2 million, operating profit was ¥23.6 million, and net profit was ¥24.2 million. The increase in second-quarter standalone revenue and return to profitability were positive developments, but the company still had a ¥100.4 million operating deficit on a cumulative interim basis. If the company returns to losses in the third quarter, it will need to absorb the full-year forecast loss in the fourth quarter alone, making the sustainability of profitability important.

By service, revenue was ¥631.6 million for advertising recruitment, ¥144.6 million for recruitment and staffing, and ¥161.0 million for education and other services. Progress against the full-year forecast was 52.4% for advertising recruitment, 39.7% for recruitment and staffing, and 48.2% for education, with only recruitment and staffing substantially below the halfway mark. The year-on-year decline in operating profit was attributed to a ¥119.9 million decrease in gross profit and a ¥17.6 million increase in compensation expenses. This was partly offset by decreases of ¥7.96 million in advertising expenses, ¥5.58 million in bonuses, and ¥4.80 million in outsourcing expenses.

In FY2026-Q3, the first checks will be whether cumulative revenue reaches ¥1,427.5 million, equivalent to 75% of the full-year forecast, and whether cumulative gross profit reaches ¥728.5 million. On the earnings side, the key points will be whether the cumulative operating loss substantially exceeds ¥229.7 million, equivalent to 75% of the full-year operating loss forecast, and whether the second-quarter standalone operating profit of ¥23.6 million is maintained in the third quarter. It will also be necessary to determine whether the improvement reflects SG&A cost control or a recovery in the gross profit margin.