Focus on third-quarter progress after 85.5% of the full-year operating profit forecast was achieved in the first half

Revenue in the first half from January through June 2026 was ¥2,894.175 million, up 17.1% year on year, while operating profit was ¥940.505 million, up 70.2%. Ordinary profit was ¥945.887 million and interim net profit attributable to owners of the parent was ¥649.685 million, up 70.9% and 78.2% year on year, respectively. The full-year forecasts remain unchanged at ¥5,350 million in revenue, ¥1,100 million in operating profit, ¥1,105 million in ordinary profit and ¥750 million in net profit.

Progress against the full-year forecasts in the first half was approximately 54.1% for revenue, 85.5% for operating profit and 86.6% for net profit. On a simple extrapolation from first-half results, the second-half amounts required to achieve the full-year forecasts are ¥2,455.825 million in revenue, ¥159.495 million in operating profit and ¥100.315 million in net profit. Profit is well ahead of plan, but revenue still requires a meaningful build in the second half to meet the full-year forecast. The business therefore needs to be assessed not only on margin improvement but also with regard to revenue seasonality.

The company has historically disclosed seasonality in which revenue is concentrated in the first quarter, including March. In the fiscal year ended December 2024, first-quarter revenue was ¥1,111.518 million, or 31.0% of the full-year total, while the third and fourth quarters recorded operating losses. In the fiscal year ended December 2023, first-quarter revenue was ¥830.369 million, or 28.6% of the full-year total, while the third-quarter operating loss was ¥23.296 million and the fourth-quarter operating loss was ¥58.320 million. Accordingly, it is important not to regard first-half operating profit of ¥940 million as the company’s full-year earning power without adjustment, but to assess underlying profitability after allowing for seasonal factors in FY2026-Q3.

At the next earnings release, we will want to distinguish nine-month cumulative revenue and operating profit from standalone FY2026-Q3 revenue, operating profit and operating margin. The specific amount of second-half growth investment and the associated increase in expenses have not been disclosed, so even if operating profit exceeds plan, it is not possible to determine whether this reflects recurring operating efficiencies or delayed investment. Along with whether the full-year forecasts are revised, the points to monitor will include the second-half recognition of personnel expenses, promotional expenses and system-related costs.