Revenue growth continues, but earnings recovery has been left behind

Revenue for the nine months ended June 2026 was ¥2,951 million, up 29.2% from ¥2,284 million in the same period of the previous year. Operating loss was ¥175 million, ordinary loss was ¥167 million, and net loss attributable to owners of the parent was ¥197 million. Despite the increase in revenue, the operating loss widened from approximately ¥112 million in the same period of the previous year, indicating that revenue growth has not translated directly into earnings improvement.

Revenue for the six months ended March 2026 was ¥1,829 million, with an operating loss of ¥119 million. From the six-month to the nine-month cumulative period, revenue increased by ¥1,122 million, while the operating loss widened by ¥56 million. The nine-month loss is broadly explained by the local business DX segment profit of ¥21 million, the brick-and-mortar segment loss of ¥121 million, and the loss of ¥76 million in Other. Accordingly, the next results release should be reviewed not only for company-wide SG&A expenses, but also for whether losses in the brick-and-mortar and Other segments narrow as revenue expands.

In the earnings forecast revision announced on 18 September, the full-year revenue forecast was raised from ¥3,626 million to ¥4,109 million, while the operating loss forecast was revised downward from a loss of ¥70 million to a loss of ¥215 million, and the net loss forecast from a loss of ¥69 million to a loss of ¥303 million. As of the nine-month period, revenue had reached approximately 71.8% of the revised forecast, while the cumulative operating loss had reached approximately 81.4% of the revised forecast. Revenue alone is progressing toward the full-year forecast, but the earnings outlook requires a substantial reduction in the loss during the fourth quarter.

The earnings presentation explained that new-business and new-store upfront investment, one-time expenses, and advertising expenses had weighed on earnings, but did not provide amounts by factor. In addition, the disclosure focuses on cumulative nine-month figures, and standalone fourth-quarter three-month earnings cannot be confirmed. In the next results release, it will be necessary to distinguish whether revenue growth came from the expansion of existing businesses or from the expanded scope of consolidation, and to determine which investment costs, one-time expenses, and extraordinary losses will remain in the fiscal year ending September 2027.